India Cement top pick in cement space, says Rajen Shah

Rajen Shah of Angel Broking said India Cements would be a top pick at Rs 85-86 levels.

Shah told CNBC-TV18, “Cement numbers like ACC and Ambuja Cements were actually disappointing. The profits are because of write back of deprecation and income tax respectively in case of ACC and Ambuja. But because of the slowdown in the economy and construction, the results have been disappointing.”
He further added, “However, on valuation basis we like India Cement, 16 million tonne cement company you are getting for about Rs 2500 crore. Even if you add debt of about Rs 2000 crore, you are getting it for hardly Rs 300 crore per million tonne. Whereas other players like ACC, Ambuja, Ultratech, you are getting at between Rs 800 crore to Rs 900 crore per million tonne. So on valuation basis, India Cement would be our top pick at Rs 85-86 levels.”