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Why Brokerages are Recommending Deccan Cements

Published 16-12-2020, 03:38 pm
© Reuters.

By Aditya Raghunath

Investing.com -- Deccan Cements Ltd (NS:DCNC) is a small cement player in the country with a market cap of Rs 532 crore. It is currently trading at Rs 378. Brokerages are recommending a buy on this stock with a target of Rs 500- Rs 600.

Ventura has a target of Rs 600 on Deccan Cements, an upside of almost 60% while Anand Rathi has a price target of Rs 514 on the stock, up 36% from current levels.

Deccan Cements reported sales of Rs 198.06 crore for the quarter ended September 30, 2020, up 47.53 % from the corresponding period in 2019 when it clocked Rs 134.25 crore in sales. It was an improvement of 42.89% from sales of Rs 138.61 crore for the quarter ended June 30, 2020. Deccan reported profits of Rs 33.84 for the September quarter. The company also reported its highest-ever quarterly EBITDA in the September quarter.

The cement sector has been in news recently. A lot of stocks in this space have broken out as economic activity has picked up. Most large players in the sector like UltraTech Cement Ltd (NS:ULTC) and ACC (NS:ACC) have already recovered strongly in the cement sector. Now, smaller players are gaining traction. Deccan Cements seems to be a top bet in the small-cap cement space, given its massive upside potential. 

The author does not have a position in any of the stocks mentioned here. 

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