Cement sector has been a laggard in overall scheme of things , due to inflationary pressures of raw material. However its a key component of entire construction industry. Another sub – industry that supplements this is the ready mix concrete and cement bonded particle boards industry.
Our recommended stock today is from this sub industry .
Name : NCL Industries
Background : Is in business of manufacturing , selling of Cement & Ready Mix Concrete, Cement Bonded Particle Boards, Doors, etc. ( Website : www.nclind.com )
Recommendation : Buy at CMP of 186 with a target of 290+ in 3 to 6 months
- Investment Rationale :
- Fundamentally sound company with a market cap of 830 Crores having trailing twelve months sales of 1600 crores
- Sales growth is inclined and has resulted in better operating margins and bottom line. Though we are yet to see improved net free cashflow from the company
- Cheapest stock on P/E , P/B & P/CF basis.
- Stock has just crossed its 50 DMA levels and is looking comfortable with a positive pattern to move towards 200