Is It Too Late To Consider Buying ITD Cementation India Limited (NSE:ITDCEM)?

ITD Cementation India Limited (NSE:ITDCEM), is not the largest company out there, but it maintained its current share price over the past couple of month on the NSEI, with a relatively tight range of ₹506 to ₹555. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ITD Cementation India’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for ITD Cementation India

Is ITD Cementation India Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 7.1% below our intrinsic value, which means if you buy ITD Cementation India today, you’d be paying a fair price for it. And if you believe the company’s true value is ₹597.23, then there’s not much of an upside to gain from mispricing. In addition to this, ITD Cementation India has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from ITD Cementation India?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. ITD Cementation India's earnings over the next few years are expected to increase by 58%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ITDCEM’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on ITDCEM, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for ITD Cementation India you should know about.

If you are no longer interested in ITD Cementation India, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.