INDIA CEMENTS Ltd. - Safe Investment at 110/ in the current market situation Because Good Dividend Paying Company; Every Year 20% Dividend giving and Company having Good reserves; Book Value at 115/- and Good Land Bank; Company EPS for 2008-09 was 16/- and Estimated EPS for 2009-10 is 25/-.
Stock is trading Equal to Book Value and Trading at P/E 4 as per this year EPS. Industry PE is 10; if we take PE 10 it will go 250/- within 6 months time. 1 to 3 months time its will reach 175/-.
Book Value 115/-; EPS 16/- for 2008-09 and Estimating EPS for this year 2009-10 is 25/-. Company Given Net profit of 281 Cr for the half year 2009-10 with 1955 Cr Turnover. As per this EPS 20/- Annualized. Next 6 months Profit will zoom So EPS for this year 25/-
Share Holding Pattern:
Promoters Holding 27.7%, Institutions 45%; Private Corporates 13% , Public only 9% and Others 5%
INDIA CEMENTS Ltd doing very good, The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 . Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh . The capacities as on March 2002 have increased multifold to 9 million tons per annum. Company having Plants at SANKARNAGAR; SANKARI; DALAVOI; CHILAMKUR; YERRAGUNTLA; MALKAPUR; VISHNUPURAM; in AP and Tamilnadu.
* The Company is the largest producer of cement in South India.
* The Company's plants are well spread with three in Tamilnadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra.
* The Company is the market leader with a market share of 28% in the South. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimisation of existing plants as well as by acquisitions.
* The Company has a strong distribution network with over 10,000 stockists of whom 25% are dedicated.
* The Company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.
* Regional offices in all southern states and Maharasthra offices/representative in every district.
The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per share (including premium of Rs.275/- per share) by way of Qualified Institutional Placement in December 2007.
The company through its Special Purpose vehicle M/s Coromandel Electric Co Ltd has commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of 17.4 MW and the same has started supplying power from the month of November 2004.
Company have another deep value in India Cements, it is the owner of Chennai Super Kings. That will itself give solid returns in 10 years from IPL. Buy India Cements and DCHL to own part of IPL cricket team franchises.. Value unlocking will happen when IPOs come separately for these franchises.;
Positive Highlights
1) Company doing very good; EPS 25/- Expecting for 2009-10;.
2) Mumbai Bulls and Operators are accumulating at current price. Because Company Strong Fundamentals. And available at very cheep price.
3) Company having Good Land Bank in Tamilanadu and Aandhrapradesh and Company having Good Reserves; Book Value at 115/-.
4) Good Dividend paying Company; Every year 20%.
5) Company given very good results EPS 16/- PE only 6 for year 2008-09;
6) Company Projected EPS for 2009-2010 is 25/-as per this PE just 4
7) Lot of expansion plans in Coming soon.
8) Very good future for this company
Friday, October 30, 2009
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