Stock Tips: Government is increasing the expenditure on infrastructure, increasing focus on affordable and low cost homes and the growth of the real estate sector is better, due to which the cement sector will get a boost.
Orient Cement Outlook: The government is increasing spending on infrastructure, the demand for affordable homes is increasing and real estate is also showing a boom. The effect of all this can be seen on the rise in the shares of the companies related to it. In such a situation, domestic brokerage firm Axis Securities has bet on the Orient Sector of the cement sector. This year, this stock has broken 30 percent so far, but now according to market experts, buying it at the current price can earn a profit of 22 percent. The brokerage firm has fixed a target price of Rs 140 per share for investing in it. Right now it is available on BSE at a price of Rs 114.70.
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Experts are placing bets because
- Orient Cement reduced its outstanding debt from Rs 478 crore to Rs 296 crore in the financial year 2021-22. Due to this, its balance sheet has strengthened, which will support its growth.
- The company is focusing more on profits than sales.
- The grinding capacity of the company has increased to 85 lakh tonnes per annum. Apart from this, the company is increasing its cement capacity by 3 million tonnes per annum, which will become operational in the financial year 2023-24. After this, its total capacity will be 11.5 million tonnes.
- The government is increasing spending on infrastructure, increasing focus on affordable and low-cost homes and the growth of the real estate sector is good, due to which the cement sector will get a boost.
- Due to all this, experts are positive about Orient Cement and have advised to buy it.
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Orient Cement shares are available at 38% discount
Orient Cement shares are currently trading at Rs 114.70, which is about 38 percent discount from the record high of 52 weeks. Last year on November 8, 2021, it had reached a 52-week record high of Rs 185.50. After this, it declined due to selling. Last month, on June 20, 2022, it slipped to a price of Rs 95.65, which is a record low of 52 weeks. After this, it has jumped 20 percent so far due to buying in shares and there is a possibility of 22 percent increase in it even further.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
