India Cements Q2 Review - Volume Improves QoQ, But Weak Realization Dents Earnings: Motilal Oswal

Motilal Oswal Report

India Cements Ltd.’s operating performance was hit in the past few quarters amid volume loss, weak cement prices in its core markets, and higher production costs.

Due to the recurring losses, working capital constraints, and higher net debt, the promoter (including the promoter group) agreed to sell the entire stake to UltraTech Cement Ltd. We continue to monitor the progress on regulatory approvals and merger with UltraTech Cement.

India Cement’s net loss estimate has widened for FY25 due to underperformance in Q2 FY25 and continuing pricing pressure. We retain our earnings estimates for FY26/27.

We value India Cements at a replacement cost (enterprise value/tonne of $100) and arrive at our target price of Rs 310. Reiterate Sell.

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