Stock Of The Day: Three-Day Fall Takes India Cements To Lowest In Six Months

The selloff seen in the stock of The India Cements Ltd. extended to day three with the shares down over 15% to a six-month low on Wednesday. The stock fell despite reporting a net profit of Rs 116.52 crore in the third quarter.

Shares of the cement maker kept testing the life-high level since the beginning of the year, but took a nosedive on Nov. 20. The stock currently finds support near the crucial 200-day moving average at the Rs 317-mark. A break out of this level could send the stock to the psychologically important Rs 300-mark.

The scrip currently is below the 14-day simple moving average and the 21-day exponential moving average. The stock has risen by 30% in 2025. The stock zoomed over 115% in July to September last year, before giving up gains slightly.

India Cements stock fell as much as 10.7% during the day to Rs 311.2 apiece on the NSE, compared to a 0.29% advance in the benchmark Nifty 50 as of 11:00 a.m. Total traded volume so far in the day stood at 3.6 times its 30-day average. The relative strength index was at 17, implying the stock is oversold.

Of the seven analysts tracking the company, one suggests a 'hold' and six have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 5.4%.

India Cements reported a consolidated net profit of Rs 116.52 crore in the third quarter ended on Dec. 31, 2024, driven by the sale of investments.

The company had posted a consolidated net loss of Rs 6.58 crore in the same period last fiscal, said India Cements, in which Aditya Birla Group firm UltraTech Cement Ltd. had acquired a 32.72% stake on Dec. 24, 2024.

Revenue from operations stood at Rs 940.81 crore in the third quarter, as compared to Rs 1,113.06 crore in the year-ago period.

Domestic sales volume grew 5%. India Cements is poised to grow stronger with an increase in its sales, optimisation of costs and efficient operations, it said in the exchange filing.

"With the increasing government spending on infrastructure and the improvement in demand in housing markets, the company is well-positioned to strengthen its presence in its core markets and contribute to the overall growth aspirations of the country," it said.

(With inputs from PTI.)