2 Cement Sector Stocks Showing Potential To Rally 45%: ICICI Direct Assigns Buy Rating

2 Cement sector stocks are showing potential to rally. These 2 stocks are JK Cement and Ambuja Cements. ICICI Direct has assigned buy call to JK Cement and Ambuja Cements. Check details pertaining to both the stocks below:

1. Buy JK Cement

ICICI Direct has assigned buy call to JK Cement with a target price of Rs 3350 apiece. Current market price of the stock is Rs 2803.85 apiece with an intraday gain of 1.16%. If you buy JK Cement now, it can give you potential return of 20%.

The stock's 52-week high is Rs 3324.90 apiece and 52-week low is Rs 2005.00 apiece, respectively. The mid cap stock has a market capitalisation of Rs 21,660.11 crore. The mid cap stock declined 14% in last 1-year, gave 97% return in last 3-years, and 173% return in last 3-years.

According to ICICI Direct, "Post timely commissioning of the new unit in Panna, we expect the growth momentum to accelerate from Q4 onwards. Further, newly announced capex at much lower cost/tonne will help boost ratios further. We maintain our BUY rating on the stock. We value the company at Rs 3,350/share."

JK Cement is the fourth largest player in North India, which contribute over 40% of its revenues.

2. Buy Ambuja Cements

ICICI Direct has given buy call to Ambuja Cements with a target price of Rs 525 apiece. Current market price of Ambuja Cements Ltd is Rs 361.05 apiece with intraday gain of 0.85%. If you buy Ambuja Cements now, you can fetch potential 45% return.

The stock's 52-week high is Rs 598.15 apiece and 52-week low is Rs 274.00 apiece, respectively. The company has a market capitalisation of Rs 71,691.72 crore. The large cap stock gave 74% return in last 3-years and 39% return in last 5-years.

According to ICICI Direct, "With aggressive expansion strategy and focus on cost efficiencies, we expect healthy revenue growth, going forward. Hence, maintain BUY rating. We value Ambuja at Rs 525 i.e.15x FY25E EV/EBITDA."

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.