espresso-shot-of-the-day-orient-cement-ltd-up-by-1047-percent

EspressoLogy

Espresso shot of the day – Orient Cement Ltd up by 10.47 percent)

Espresso shot of the day – Orient Cement Ltd up by 10.47 percent

March 04, 2021

ORIENT CEMENT LTD 110.25 (+10.47%)  BSE – INE876N01018| 4TH MARCH 2021


Established in 1979, Orient Cement was formerly, a part of Orient Paper & Industries. It was demerged in the year 2012 and since then, it has emerged as one of the fastest growing and leading cement manufacturers in India. Orient Cement began cement production in the year 1982 at Devapur in Adilabad District, Telangana. In 1997, a split-grinding unit was added at Nashirabad in Jalgaon, Maharashtra. In 2015, Orient Cement started commercial production at its integrated cement plant located at Chittapur, Gulbarga, Karnataka. With a total capacity of 8 MTPA, they serve Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Chhattisgarh. The product mix includes Pozzolana Portland Cement (PPC) & Ordinary Portland Cement (OPC) marketed under the brand name of   Birla.A1 – Birla.A1 Premium Cement and Birla.A1 StrongCrete. With focus on resilience and durability, the company has created benchmarks in the industry with the quality of its products. It is certified for QMS ISO 9001:2015, EMS ISO 14001:2015, OHSMS 45001:2015, ISO 19011:2018, ISO 50001:2011, ISO 27001:2013. Orient Cement is one of the only two Indian cement companies to be awarded the prestigious TPM (Total Plant Maintenance) excellence award by the Japan Institute of Plant Maintenance. The company has also received numerous awards for green and safety practices including ‘GreenPro Certification’ by CII – Green Products and Services Council for its product Birla.A1 Premium Cement (PPC). Orient Cement stands for strength and trust, and has established a reputation for the same with the use of only high-grade raw materials. The products are suitable for all types of industrial, residential and commercial constructions.

Recent Drivers

  • Orient Cement reported Quarterly Net Profit at Rs 53.88 crores in December 2020 up 1049.31% from Rs 5.68 crores in December 2019.
  • Orient Cement reported Standalone Net Sales at Rs 604.61 crores in December 2020 up 7.11% from Rs 564.49 crores in December 2019.
  • EBITDA of Orient Cement stands at Rs 144.05 crores in December 2020 up 150.04% from Rs 57.61 crores in December 2019.
  • While discussing numbers in detail with CNBC-TV18, Deepak Khetrapal, MD and CEO of Orient Cement said, “With good performance and good cash-flow we have witnessed strong working capital improvement. As a result, in this particular year, we have reduced our debt by close to Rs 300 crore and we still have cash in hand and in this quarter we will reduce our debt further.”
  • In the same discussion he mentioned Orient Cement plans to make a major investment in the grinding unit in the next two years. He said, "Major investments will happen in a split grinding unit closer to markets where we cannot reach as of today."
 (Sources: MoneyControl, CNBC-TV18)

Technical Force*

  • S&P BSE ALL CAP month till date gain up by 4.23%
  • Traded on new 52- week high 113.65, stock is trading in uncharted territory
  • Spurt in volume by more than 3.38 times compares to previous vol. 3 months avg qty – 85,238
  • Stock price has jumped more than 100% from one year low level – 18.25 24 March 2020
  • Daily RSI (14) is in overbought territory for 8 periods ago, RSI central line crossed above central line 11 periods ago
  • 52 -week high – 113.65 | 52- week low- 35.25

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

160.40

125.05

105.95

70.60

51.50

16.15

-

-

Fibonacci Pivot

125.05

104.25

91.40

83.12

70.60

58.08

49.80

36.95

16.15


Today’s Close

110.25

SMA

BSE

10 DAY

95.11

20 DAY

93.76

50 DAY

89.02

200 DAY

71.80

Some Key Ratios (Source: BSE)

Market Cap: 2258.68 crores

PE: 14.26

OPM%: 19.80

ROE%: 13.62

Prev. Close: 99.80

*Chart And Technical Force data taken from the Binge desktop app.

The scope and usability of this information/data is time-sensitive and market-based, and as such the same may become outdated for the investment decisions of clients, for which Sharekhan comtrade bears no responsibility. References to securities do not constitute a recommendation to buy, sell or hold such securities. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document and should consult his own advisors to determine the merits and risks of such an investment. Sharekhan Comtrade Private Limited is under no obligation to update the information in this document from time-to-time.


Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.