India Cements poised for further gains

Rising cement rates and okay to merger of units with parent will lead to better profit growth

The National Company Law Tribunal approving amalgamation of Trinetra Cement and Trishul Concrete Products with India Cements is seen as positive. The union of the two subsidiaries with the parent will not only simplify the structure, but also help India Cements derive benefits from its core business, say analysts who expect the event to lead to a re-rating of the stock, which jumped 8.8 per cent on Thursday.

India Cements, with significant capacities in Andhra Pradesh and Telangana, had taken stake in an abandoned cement plant at Banswara (Rajasthan) and expanded its capacity to 1.5 million tonnes per annum (mtpa).