See 100% upside in India Cements: Rajen Shah

See 100% upside in India Cements in next three years, says Rajen Shah, CIO of Angel Broking.

Shah told CNBC-TV18, "India Cements is a contra call. In November 2004 I remember India Cements reported a huge loss of Rs 96 crore and the stock was at Rs 31. The capacity utilization in South was 65% and the cement prices were poor, the demand was weak and that is where you get the stock cheap. The best time to own a commodity stock especially a cement commodity stock is either the demand is very weak or the supply is abundant. Currently if you see the supply is abundant, capacity utilization in South India is about 65 to 70% and that is the reason why you are getting India Cements at this kind of valuations."
He further added,