FINANCE & STOCK ADVICE: My View On Ambuja Cement

About The Company

Ambuja Cements, part of the Swiss cement giant Holcim, has been one of the leader of the market in the cement sector.The product is well renowned for its quality and strength.

About The Results

The company has posted results for the year ended 31^st Dec 2008, the company posted a decline of 25% in its consolidated net profit for the financial year to Rs 1,389.71 crore. Its consolidated net sales during the year stood at Rs 6,261.79 crore as against Rs 5,718.60 crore last financial year, up 9.5%.

Production increased 5% to 17.6 million tonnes (16.8 million tonnes). Domestic despatches were up 9%. Exports dipped by over 37%. Total expenditure rose 23% to Rs 4,716 crore as power and fuel costs jumped 30% to Rs 1,326 crore. This rise in power and fuel cost was due to the spike in coal prices, as captive power accounts for 80% of its total requirement. In Himachal Pradesh, the company buy’s from the grid. Freight expenses were up 12% to Rs 1,220 crore.

Key factors in this Stock

1. The board of directors has recommended a final dividend of Re 1 per share and the total dividend for the year works out to Rs 2.20 a share (110%).

2. The company has commissioned a grinding unit of 1.2 million tonnes at the ACL terminal at Surat in Gujarat.

3. The captive power plant of 18.7 MW will be completed at Rabriyawas plant in Rajasthan.

4. Its additional power plants at Ambujanagar, Bhatapara and Chandrapur will add another 90 MW.

5. The projects at Bhatapara in Chhattisgarh and Rauri in Himachal Pradesh, to add 4.4 million of clinker capacity, are slated for completion by end-2009.

6. The bulk cement terminal at Kochi is to be commissioned in the first quarter of 2009.

7.In the next two years, the company plans to acquire three new vessels to strengthen its fleet of ships.

About The Stock

The long term story remain intact so partial investment may be made at panics.

Disclaimer: I do not have any personal investment in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Ambuja Cement