We all know that because September quarter is always the worst for the cement companies because you have the monsoon, very poor off take. When you have the poor off take naturally you have to compromise on the margin also but I have been maintaining my positive view on the cement stocks and more specifically on Shree Cement and that is precisely the reason that I have taken only one cement stocks. ” Shree Cement ” – if you see the kind of capacity additions with the timely completion of the capacity, which they have been frequently doing it and the expected EPS of close to about Rs 350 for FY14 with cash EPS of Rs 500 per share. If you see the debt Rs 1,500 crore, I don’t think that it is so alarming when you see the cement capacity, power generation capacity, 75 percent promoter stake. So I am quite positive in short term for coming 2 months. In the month of October itself because we have quickly seen the price raise also made by the cement companies in these last two weeks or so because of the monsoon now going away. You have monsoon in some part of the country may be in Rajasthan and Gujarat,
Point to remember : With current capacity at 13.5mnte, the company is expected to increase its capacity to about 26mnte over the next three to four years.
TECHNICAL READING OF SHREE CEMENT CHART –
just have a look at the chart of the shree cement, we can clearly see that stock is moving into trend line channel, which is up in direction, even rsi still moving on support level.
stock has already given a “POSITIVE CONVERGENCE” signal at bottom level around 3600 and same was confirm after crossing the resistance line.
as per the chart development we can see that there is still one breakout left in this stock and possibly if stock able to give close above 4500 level, and stays positive for next day also then we can see 5200-5700 level soon.
so overall concoction is stock is in uptrend but if it able to move above 4500 level then we can see more uptrend in this stock uptimate bottom support are 4200 now.