Orient Cement shares zoom 47% in a month; here's what analysts say

Orient Cement Ltd shares on Wednesday resumed their upward move after a brief single-day halt. The stock was last seen trading 3.82 per cent higher at Rs 310. At this price, it has gained 46.85 per cent in the past one month.

Bourses BSE and NSE have put the securities of Orient Cement under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Cement stocks have been buzzing lately due to increased infrastructure development, growth in the housing market, strong financial performance and stable raw material costs, said Amar Deo Singh, Head of Advisory at Angel One.

On technical setup, support on the counter could be seen in the Rs 299-290 range. And, a decisive close above Rs 330 required for more upside, an analyst suggested.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, "The cement stock can hit an upside target of Rs 320. Keep a strict stop loss placed at Rs 299 for this trade."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 290 and resistance at Rs 330. A decisive close above Rs 330 level may trigger a further upside towards Rs 345. The expected trading range will be between Rs 280 and Rs 345 for the short-term."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 85.87. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 35.98 against a price-to-book (P/B) value of 3.61. Earnings per share (EPS) stood at 8.53 with a return on equity of 10.03.

Around 1.48 lakh shares changed hands today on BSE. The figure was lower than the two-week average volume of 2 lakh shares. Turnover on the counter came at Rs 4.61 crore, commanding a market capitalisation (m-cap) of Rs 6,290.50 crore.

As of March 2024, promoters held a 37.90 per cent stake in the cement firm.