Buzzing stock: Shares of this cement company surged 5.39% on July 8

Cement stocks are gaining momentum due to declining crude oil prices.

Markets are trading positive for the third consecutive day. At 11:40 am, on July 8, S&P BSE Sensex is trading at 54397.75 with 0.4% gain, whereas the NIFTY index is trading at 16196, 0.39% higher for the day. This week, crude oil prices have shown a sharp decline. This has led to a rally in different businesses including cement.

Among the cement companies, India Cement Ltd is the top gainer on the street. At 11:40 am, the shares of India Cement Ltd are trading 5.39 % higher for the day at Rs 174.

As the markets have been rising for the last 3 days, the shares of India Cement have also risen by 10% in the same period.

Incorporated in 1946, India Cement is one of the leading cement manufacturers in India. It is also involved in the business of captive power, shipping, and coal mining. These all other businesses provide synergic benefits to the core cement business for the company.

The company has a market capitalisation of Rs 5,369 crore. Talking about the holding pattern, about 22.12% of the company is held by FIIs and DIIs. 28.42% is held by promoters, and the rest 49.46% is owned by the public. Out of 49.46%, about 12.7% is owned by one of the top investors in India, Radhakrishna Damani.

However, the company has poor financials. The 3-year sales growth for the company is recorded at -6%. The ROE is also low for the company, reported at 1.35%, as per the March FY22 period ending. However, the company has maintained a healthy dividend payout of 30.52%.

Talking about valuations, the company is trading below its book value of Rs 192 and trading at a PE multiple of 68.4x. The stock has a 52-week high and low of Rs 259.9 and Rs 145.55, respectively.