FINANCE & STOCK ADVICE: Analysis Of India Cements Limited for Investments

About The Company

India Cements, India’s leading cement manufacturer of South India.Indian Cements 1.10 mt capacity went on stream in April 09’. The company is investing Rs 300 crore for establishing a cement plant with an initial capacity of 1.5 million tonnes per annum (tpa) in Rajasthan and this investment is through Indo Zinc. The total project cost is Rs.600 crore and of this, Rs.300 crore it plans to bring in from debt. This is the second foray of the company into north India, its first project is in Himachal Pradesh, which unfortunately has been embroiled in infra bottlenecks. Its unit in Maharashtra is up and running.

Clearly India Cements is breaking its image of being just a South India based company. These forays into other parts of India will thus help the company get a better-rounded growth. Huge capacities are to go on stream in this fiscal, and it will leave the industry with surplus capacities.

About The Financial Results

The company has presented a good set of results for the first quarter ended 30th June 2009. Net revenues were up 9% at Rs 953.48 crore on a YoY. EBITDA/tonne was at Rs 1188 as against Rs 877 on a QoQ while it was at Rs.1092 on YoY. Net profit rose just marginally by 2% at Rs 144.28 crore.

The pressure is more evident on the profit margins. OPM was down to 30% as against 34% in Q1FY09. The quarter saw a sharp rise in ‘other expenses’; it was up YoY by 74%. These expenses included Rs.13.47 crore on account of dry docking expenses on a ship. Its power, fuel and freight costs remained flat when compared on a sequential basis.

The subdued performance was mainly on account of lower demand from parts of Karnataka and Andhra Pradesh. Andhra Pradesh is the largest consumer of cement in South and in Q1, consumption was flat in that region as most of the infra projects were put on hold due to the elections. But now with elections over and done with, it is expected that cement would see a pick up in this current Q2 quarter.

About The Stock

My personal opinion on this stock with regard to its’ price performance in short to long term on basis of Fundamental analysis , Technical analysis and exclusive multi bagger reliable news sources are exclusively reserved for the registered member with detailing of the same. Only registered member have right to email me mentioning the name and date of registration to ask for the same.

Disclosure : I do not feel any need of giving any disclosure over here , my personal portfolio are always shared with the members.

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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Analysis Of India Cements Limited for Investments