Brokerage firm ICICI Securities suggested buying this small cap stock, know more why is that

The cement company's net profit has fallen by 26.67% to ₹73.24 crore in Q4FY22, and sales have fallen by 3.34% to ₹803.86 crore in the same quarter. However, the company's net profits have been remarkably good in the full fiscal. IN FY22, net profits grew by 22.90% to ₹263.25 crore, as against ₹214.19 crore in FY21.

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Indian stock market is bearish today, due to inflationary pressure and recent rate repo hikes. Nifty fell 0.17%, and stood at 15,267.60 points at 2.08pm today. The below-mentioned cement stock has also fallen significantly today, however, the stock has good potential. With a target price of ₹135, brokerage firm ICICI Securities has suggested buying this stock.

The stock price of Orient Cement Ltd. has reached its 52 weeks low level today. With a total capacity of 8 MTPA, the cement manufacturer serves in the states of Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Chhattisgarh. Share price of Orient Cement Ltd. has fallen by 4.67%, and stood at ₹98.95, today till last traded.

It is a small cap company with a market capitalization of ₹2,024 crore. The 52 week high level of this stock is ₹185.55, and 52 week low level of this stock is ₹98.30. in the past 6 months, its stock price has fallen by 36.89%, in the past 1 year its stock price has fallen by 27%.

However, in the past 2 years the stock’s price has gained sharply. On June 19, 2020 its stock price stood at ₹72.95/share, so gained by around 36% in 2 years. In the last month, the Indian stock markets were very bearish, so, this cement stock has also been quite flat.

The cement company’s net profit has fallen by 26.67% to ₹73.24 crore in Q4FY22, and sales have fallen by 3.34% to ₹803.86 crore in the same quarter. However, the company’s net profits have been remarkably good in the full fiscal. IN FY22, net profits grew by 22.90% to ₹263.25 crore, as against ₹214.19 crore in FY21.

Its sales grew by 17.27% to ₹2725.42 crore in FY22, as against ₹2324.09 crore in FY21. So, going beyond the short term goals, one investor can check the profile of the said cement stock considering long term goals.

Additionally, Orient Cement Ltd. is also fetching a dividend yield of 2.53%, which can be profitable for its shareholders. An investor should check the stock’s potential depending on the company’s guide on its capital expenditure and further development.

The stock last hit in BSE,

  • Intraday High of ₹ 104.15
  • Intraday low of ₹ 95.65