Money Tree

INDUSTRY : CEMENT

The company’s 62% turnover comes from cement and around 23% turnover comes from its sugar business. The company has been posting consistent performance in the past years. Because of this year’s budget emphasis on infrastructure development and boom in housing and property sector and due to increase in prices of cement the company is expected to post good numbers in the next two three years.
The stock price has not rallied as compared to other cement stocks like ACC and shree cements. Last year the company had a turnover of Rs. 451 crores and net profits of Rs. 31 crores. The company has only 77 lacs shares of face value of Rs. 2 per share. The last year’s EPS was Rs. 39. Perhaps this stock has the cheapest PE in the cement industry. (Shree cement has EPS of Rs.8.87 and its CMP is Rs. 1093, ACC has EPS of Rs. 19 and its CMP is Rs. 963)
The stock can be picked up below 340 levels.