INDIACEM

Fundamental View-

India Cements is one of the oldest cement manufacturers in South India with a capacity of over 15.5 million tonnes per annum, operating primarily in Andhra Pradesh, Tamil Nadu, Telangana, and Maharashtra. The company has a diversified product portfolio under popular brands like Sankar, Coromandel, and Raasi. However, its recent financial performance has been under pressure due to rising input costs, weak cement demand in key markets, and high debt levels. As of FY24, revenue stood at ₹5,644 crore with a net loss of ₹181 crore, and EBITDA margins remained weak at around 6%. The debt-to-equity ratio is high at 1.3x, indicating financial stress. While it holds significant market presence in the southern region, its profitability, cash flows, and return ratios have remained subdued. Going forward, a revival in infra demand and capacity rationalization will be key to India Cements' recovery, but the near-term outlook remains cautious. Technical View- As seen on the weekly chart, India Cements is showing a bullish structure with the stock consistently holding above its 14-day EMA and 50-day moving average, indicating strong technical support. For the past three weeks, the stock has displayed solid upward momentum and continues to trade above its breakout level, reflecting sustained strength on both daily and weekly charts. With Q1 FY26 results scheduled for June 19, some volatility may be expected in the short term. However, the overall trend remains positive, and the stock appears favorable for a buy-on-dip strategy from a long-term investment perspective. If the momentum sustains, the stock has the potential to move toward the ₹360–₹370 range in the coming weeks.