Saturday, February 4, 2012

ANJANI PORTLAND CEMENT - BUY






Many sectors are buzzing on expectation of a cut in interest rates  and some policy initiatives in near future.Infrastructure and Real estate are few among them.Any positive developments in this sector will surely help the Cement Industry going forward.Even in tough times this industry has shown good resilience mainly through production discipline and cost cutting efforts.Just few months back we have discussed India Cement @ Rs.68 which is now quoting around Rs.94/-.Anjani Portland cement is another company from this sector mostly ignored by the investor fraternity even after good performance for many years.This Hyderabad based company was originally incorporated as Shez Cement and later taken over by the estwhile promoters of Raasi Cement and then  renamed as Anjani Portland Cement.This promoters having vast experience in cement industry by running another well known cement company - Raasi Cement - successfully for many years.Raasi cement later taken over by India Cement in 1998 after a take over battle. Till recently Anjani was  selling its product( PPC ,43 & 53 grade cement) mainly in Andhra Pradesh  under the brand name' Anjani Super Gold' .After expanding the production  capacity in last year to 1.2 million tons per year,now company is expanding its marketing to new areas like  Tamilnadu, Kerala,Orissa, Karnataka and Maharashtra.To ensure the quality raw material for cement production Anjani having limestone mines in Nalgonda districtof AP.Company have two subsidiaries - Hitech Print Systems Limited and  Vennar Ceramics Limited.HPSL is a security printing unit certified by IBA.VCL having gas based power generating plant  with a capacity of 2.7 Megawatts which is sufficient to meet almost 55 % of the total power requirements of Anjani Portlant Cement . At a time of rising power tarriff and frequent power cuts ,this is a big advantage for the company. Company showing good performance for the past many quarters.In September it posted a turnover of Rs.71 Cr v/s Rs.30 Cr and a net profit of Rs.4 Cr v/s a loss of Rs.8 Cr.At current market price of Rs.37/- its market cap is just 68 Cr .Considering the recent expansion ,experience of promoters,dividend track record and chances of a re-rating in cement sector ,Anjani Portland Cement is a risk less bet @ CMP of Rs.37/-

17 comments :

  1. Can you please view on JK Lakshmi Cement. I've bought at 46.

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  2. SIR HOW IS THE RESULT OF TASTY BITE IS EXPECTED????

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  3. SIR POST UR VIEW ON GODREJ IND RESULTS...

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  4. Dear KMD
    Due to overall improvement in US market and softening vegetable prices , I expect some improvement in 3rd qtr result

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  5. Dear VPji,
    But the PE ratio seems to be very high and the volume of trade is very low. Do you genuinely believe that this will improve?

    Regards,
    Neeraj Sharma.

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  6. Dear Neeraj

    Is it right calculating P/E ratio only on the basis of the just previous year which is the only bad year for the company for the past many years.?

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  7. please give ur comments on camlin fine post resultd

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  8. Dear Madan

    Nothing wrong in taking profit from Camlin Fine which was recommended @ Rs.56 and now @ Rs.142/-

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  9. Hi Valueji,

    My question on AK cAPITAL was not answered...please do give your opinion on it.

    regards,

    Sachi

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  10. Dear Sachi

    Not tracking AK Capital

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  11. sir,
    whats your view on sanghvi movers?can we get into it right now?

    jerry

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  12. Latest Reserves : 45.82 Book Value : 34.92 52 Week H/L : 42.9 | 23
    Latest Debt : 241.99 PE & EPS : 5.14 | 7.72

    Debt kills the positives in the counter. Not good in this market.

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  13. Debt used for capacity doubling and its benefit will start from this FY.I believe cash flow will improve going forward and debt is managable

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  14. Sir,
    Q3 results not up to expectation. Sales and operating profit below Q2. Raw material costs and power & fuel increased even though sales lower than Q2. Is it still a good buy at current level?
    Thanks
    Prakash

    ReplyDelete

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