India Cements — Motilal Oswal Maintains 'Sell' On The Stock After Q3 Results Here's Why

India Cements is expected to benefit from synergy with UltraTech Cement, led by the implementation of new processes, system, cost optimization, and a wider distribution network..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The India Cements Ltd. reported an operating loss of Rs 1.9 billion (versus estimated loss of Rs 854 million) in Q3 FY25. Sales volume increased ~5% YoY to 2.1 million tonne (~2% below our estimate), while blended realization declined ~20% YoY to Rs 4,333 (~5% below our estimate). India Cements' adjusted net loss stood at Rs 2.6 billion (estimated loss of Rs 1.4 billion) versus a net loss of Rs 345 million in Q3 FY24.The company’s capacity utilization stood at 57% in Q3 FY25 versus 50%/59% in Q3 FY24/Q2 FY25. However, a sharp decline in realization led to a higher operating loss. UltraTech Cement has acquired a 32.7% stake in India Cements, taking its aggregate shareholding in the company to 55.5%. India Cements has now become a subsidiary of UltraTech Cement. The company is estimated to benefit from synergy with UltraTech, led by the introduction of new system and processes, economies of scale, cost optimization initiatives and a wider distribution network. India Cements aims to strengthen its presence in its core markets (South).We await clarity from the management regarding the transition/integration process of India Cements under the new management, profitability and growth plans. We value India Cements at a replacement cost (enterprise value/tonne of $100) and arrive at our target price of Rs 310. Maintain Sell..Click on the attachment to read the full report:.ICICI Prudential, MCX, Oberoi Realty, PNB Housing Finance, IndiaMart Q3 Results Review — HDFC Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Cements — Motilal Oswal Maintains 'Sell' On The Stock After Q3 Results Here's Why

The brokerage awaits clarity from the management regarding the transition/integration process of India Cements under the new management, profitability and growth plans.

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