Sunday, June 26, 2011


Industries with Cyclical nature offering  excellent opportunities for long term value investors. Cement industry is a perfect example for this . Currently most of the cement companies are going through a  bad situation  because of   over capacity due to slackness in construction activities . Higher cost of funds on account of a series of interest rate hikes and delay in taking decisions  on  various infrastructure projects by governments  due to recent  allegations adding fuel to the fire. But as a vital part of nation building this industry offering fair chances for long term investors. India cements is a south based cement company which is selling its products under three main brands - Sankar , Coromandel and Raasi.Through its  subsidiary, Trishul Concrete Products ,company is offering  ready mix concrete solutions from its  Hyderabad plant.Performance of most of the cement companies from the south were muted due to the reasons mentioned above and the share prices has corrected sharply . Long term sluggishness  in any industry will ends in consolidation and improvements in realisations thereafter. India cement is trying to reduce its  energy cost by commissioning mini  power generation facilities and acquiring coal mines abroad.Benefits of this  efforts are expected to impact positively from next financial year onwards.In addition to the over all trend in Cement Industry , India cement is currently trading at its multi year low mainly because of some external factors too.Company's name is mentioned in the ongoing Kalaignar TV related allegations.The recently changed political situation in its home state is also against the company.As a result of all these negatives, India Cement is currently trading around  Rs.68/-which is its three year low .Considering many facts , India cement is a value buy for investors but only with a long term view. Buy your first lot at current level and add in dips.


  1. valueji
    what are your views on UNITECH rei six ten is it abuy hold or sell ....... Don you feel unitech has been beaten down way too much and its a valuebuy now

    FANTASTIC call on avt wish id put more

  2. dear value pick,

    please update on aries agro, TCPL,
    what to do i m holding these for some time.

    what is your opinion on shree cement.
    thanks a lot for your good work.

  3. Sorry , not tracking both unitech and Rei six ten

  4. Dear Neeraj

    No change in my stands on Aries and TCPL

  5. dear value pick sir, kindly mention some good infrastructure stocks which have good executional capacity and which will turn to be a multibagger considering longterm perspective.....

    also kindly teach us how to buy a good pharma stock? are there so many things to consider like FDA approval...domestic market...intrnational market...what are all the good pharma companies according to you for holding long term?
    thanks in advance

  6. Dear Value Pick,
    Can you give your view on Aqua Logistics & Vikas WSP. Both the stocks are beaten down heavily.

  7. Dear ValuepickJi,

    1.)India cements have only 26% promoter holding 70% of which is pledged. Is that ok?
    2.)What is your opinion on voltamp transformers ?

    Best Regards,

  8. hi Sir,

    What can we infer from you "buy" & "A value buy" picks ?
    Does 'buy mean buy it the next trading day ?



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