India Cements: RK Damani portfolio stock jumps for 3rd day, up 5%

India Cements, a Radhakishan Damani (RK Damani) portfolio stock, advanced 5 per cent in Tuesday's trade, taking its winning streak to the third straight session. The scrip rose 4.85 per cent to hit a high of Rs 255.10 on BSE, with 2.87 lakh shares changing hands on the counter compared with a two-week average of 2.27 lakh shares.

The stock has risen 8.6 per cent in the last three sessions. It is up 25 per cent year-to-date.

A meeting of India Cement board members will be held on November 7 to consider and approve September quarter results.

Elara Securities is expecting the cement maker to report a loss of Rs 60.70 crore for the quarter despite a 9.6 per cent YoY rise in net sales at Rs 1,303.90 crore. Phillip Capital sees loss for the quarter at Rs 89.40 crore.

This brokerage sees sales falling 18 per cent YoY to Rs 1187 crore.

Volume degrowth is  seen at 5 per cent YoY while realisations seen growing at 5 per cent YoY.

In an October note, Nuvama Institutional Equities said the stock has been running ahead of underlying fundamentals mainly due to the buzz of the company being a potential acquisition target.

"Operationally, FY23 is turning out to be one of the most difficult year for India Cements with Ebitda per tonne estimated to drop to a multi-year low of Rs 300. Despite assuming strong recovery (to Rs 700 per tonne), the stock trades expensive at 13 times EV/Ebitda on FY24 estimates," it said.

Damani, along with his brother Gopikishan Shivkishan Damani, held about 20.8 per cent stake in the cement maker as of September 30, which is worth Rs 1,631 crore at the prevailing price. 

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