Sell India Cements, says Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that one can sell India Cements. According to him, if the stock cracks Rs 78, then significantly lower trend will start.

Sukhani told CNBC-TV18, "Cement is cracking. In fact UltraTech has probably a better chart in the sense that a dip there is a buying opportunity but most other cement companies charts tell us lower levels are coming. India Cement is in a trading range. It is in the middle of that range and now coming on the downside which means strong support comes only at Rs 78. So there is a tradable opportunity. From Rs 83 to Rs 78 is a good move that short term traders can take on the sell side. If it cracks Rs 78, then of course, a significantly lower trend will start but that’s later."
The share touched its 52-week high Rs 104.65 and 52-week low Rs 75.45 on 15 October, 2012 and 22 May, 2012, respectively. Currently, it is trading 20.45 percent below its 52-week high and 10.34 percent above its 52-week low. Market capitalisation stands at Rs 2,557.26 crore.
The company's trailing 12-month (TTM) EPS was at Rs 9.22 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 9.03. The latest book value of the company is Rs 132.42 per share. At current value, the price-to-book value of the company was 0.63. The dividend yield of the company was 2.4 percent.