India Cements Shares In Focus: ICICI Securities Re-Initiates Coverage With 'Hold' Rating

UltraTech Cement gained management control of India Cements, effective December 24, 2024. Ever since, management remains steadfast on its guidance of Rs 1,000 Ebitda/tonne by FY28..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. .ICICI Securities Report.ICICI Securities has re-initiated coverage on India Cements Ltd. with a 'Hold' rating and a target price of Rs 422, implying a modest 1.8% upside from the current market price of Rs 414.The brokerage notes that while India Cement is set for a significant operational overhaul under UltraTech Cement Ltd., the gains may only restore parity with South India’s leading players rather than deliver outsized returns..Little upside on fundamentals; merger uncertainty looms The coveted Ebitda/tonne of more than Rs 1,000 would only bring India Cements back into the main league; yet, merely yielding a mid-single-digit RoE. Envisaging fresh concerns of rising industry-wide competitive intensity (tracking significant capacity additions over FY26–28), the brokerage values India Cements at 12 times FY28E enterprise value/Ebitda – just shy of brokerage's 13 times multiple for The Ramco Cements.. As per UltraTech Cement, while a merger is likely on the cards in FY27 or FY28; this remains imponderable given vagaries around its timeline and the merger ratio (usually advised by an independent valuer), in the brokerage's view..Key risks Sharp increase in cement prices and/or sharp fuel cost decline are key upside risks.Sharp fall in cement prices and/or major surge in fuel prices are key downside risks..Click on the attachment to read the full report:.Siemens Energy Shares May Rally 27%, Says Motilal Oswal — Here's Why.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 Shares In Focus: ICICI Securities Re-Initiates Coverage With 'Hold' Rating

While a merger with UltaTech Cement appears an eventuality, its timeline as well as merger ratio remains imponderable, says the brokerage.

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