ICICI Securities bullish on Deccan Cements
ICICI Securities has a bullish view on Deccan Cements as it believes the company will be a direct beneficiary of the demand revival for cement in the South, specifically Andhra Pradesh and Telangana.
Stocks of Deccan Cement rose 5.20% and rose 5.86% in the last one week. The stock’s average traded quantity was up as 3706 shares changed hands on Tuesday compared to the two-week average traded quantity of 485 shares.
“DCL’s cement plant is in close proximity to Amaravathi and other upcoming projects (irrigation projects), which would make the company a key beneficiary of cement demand emerging from the region. Further, due to close proximity, DCL would enjoy the benefit of lower lead distance resulting in higher profitability,” the brokerage said in a note. It has a target price of Rs 1,400-1,450 per share.
In the short term the brokerage said the stock will remain in consolidation for a few months with strong support placed in the Rs 900-950 region but that given the long term bullish price structure, declines towards support zone should be utilised as buying opportunity to ride eventual upside towards Rs 1200.