Share price of India Cements fell nearly 4 per cent after the announcement of fourth quarter results today. India Cements share price today opened with a gap below and went to intraday low reached its 52-week low of 159.55, 150.70 level on NSE.
According to stock market analysts, India Cements Q4 Result Unexpected as cement major reports loss 237 crore in the January to March 2022 quarter. He added that the company’s revenue and margins reported in Q4 earnings failed to meet road expectations and expects the stock to continue to feel the heat of the sell-off in the upcoming sessions as the Government of India (India) Government) has already announced to keep one. Check commodity prices including cement. Market analysts say India Cements share price may go down further 120 per level if it breaks its current 52-week low.
Anticipating further weakness in India Cements shares, Avinash Gorakshakar, Head of Research, Profitmart Securities said, “India Cements has reported. 23.7 crore loss in its Q4 results, which the markets were not expecting. Further, the market was expecting better revenue, EBIDTA and margin numbers from the company in Q4FY22 results. As the Indian government has already announced a check on commodity prices to check inflation, India Cements will not have the option of increasing prices and improving its numbers in the near term. In such a situation, the pressure on the company’s upcoming quarterly figures is also expected to remain. This could be a possible reason for the fall in the share price of India Cements after the announcement of the fourth quarter results of India Cements.”
Sumeet Bagadiya, Executive Director, Choice Broking, advising positional investors to avoid taking any fresh positions in the counter said, “The chart pattern of India Cements indicates further weakness in the counter. Currently, it is trading in from 150 180 range and those having this stock in their portfolio are advised to maintain strict stop loss at 150 and exit on any major bounce in the counter. upon breach The stock can go up to the level of 150 120 each level in the near future.”
Comparing India Cements’ fourth quarter and market expectations, Avinash Gorakshakar of Profitmart Securities said, “The market was expecting revenue in the January to March 2022 quarter. from 1450 1500 crores while the revenue of the company in Q4FY22 is approx. 1390 crores. Similarly, India Cements EBITDA margin stands at 61.50 per cent in Q4FY22 as against the market expectation of around 59 to 59.50 per cent. Similarly, the company’s margins stood at 4.40 per cent in the fourth quarter of the recently ended financial year 2021-22, while the market was expecting 6 per cent of the company’s margins.
However, despite failing to meet road’s expectations, the board of directors of India Cements has recommended a dividend of Re 1 per equity share for the financial year 2021-22.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not Mint