Now we are looking stock from cement sector, Cement sector is defensive sector in stock market also it is a potential growth sector in forward. We are discussing today is a Gujarat based company
" SAURASHTRA CEMENT LTD".
The Indian arm of the Mehta Group has two Cement and Building materials companies: Saurashtra Cement Limited and Gujarat Sidhee Cement Limited.
Both companies have won prestigious national awards in the Indian cement industry and are ISO 9001:2000 and ISO 14001 certified. Their products conform to BIS, BS, SLSS and SABS standards and are marketed / distributed in bags, jumbo bags, trucks and by bulk. The companies employ multi modal transportation - road, rail and sea - to suit customers' requirements and their markets are located in Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, the West Coast of India and overseas markets in Africa, the Indian Ocean and Middle East countries.
SAURASHTRA CEMENT manufactures and markets cement under the brand name 'HATHI'. The Company is also a recognized Export House and has won the Indian cement industry's prestigious national award. Besides standard products, the company also manufactures 'Sulphate Resistant Portland Cement' for specific applications.
Hathi Cement manufactures and distributes its range of cement. We aim to optimize distributors across all of our markets and providing a complete solution to customer's needs at the lowest possible cost, an approach we call strategic integration of activities.
Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed and ground to provide the "raw meal”, a pale, flour-like powder. Heated to around 1450° C (2642° F) in rotating kilns, the “meal” undergoes complex chemical changes and is transformed into clinker. Fine-grinding the clinker together with a small quantity of gypsum produces cement. Adding other constituents at this stage produces cements for specialized uses.
Saurastra Cem is in the Cement - Major sector. The current market capitalisation stands at Rs 280.53 crore.The company has reported a standalone sales of Rs 164.77 crore and a Net Profit of Rs 15.70 crore for the quarter ended Jun 2014.
The company management includes M
N Mehta - Chairman, Jay M Mehta - Executive Vice Chairman, M S Gilotra -
Managing Director, Alexander Shaik - Nominee Director, Anil Kaul -
Special Director, V R Mohnot - Director - Finance, Hemang D Mehta -
Director, M N Rao - Director, S V S Raghavan - Director, B P Deshmukh -
Director, K N Bhandari - Director, Jayant N Godbole - Director, Hemnabh
Khatau - Director, Bimal Thakkar - Director, P K Behl - Additional
Director, Bhagyam Ramani - Additional Director.
Details of company HERE
Company posted profits in sept 2014 q2 results (june to sept is monsoon session) 140CR sales compared 116cr last year net profit of 1.93cr from 11cr loss last year. 2014-15 half year sales jump to 323cr from 231cr net profit 17.5cr compared to loss of 8cr last year. so expected EPS was full year of 2014-15 around 7.
Cement sector PE is around 30 but saurastra cement trading @ just 3.87 PE, compare to it's peer group this stock is really undervalued ,Book value is 32 stock trading only BSE @ 55 level one can buy for this stock @ current price for medium to long term stock should cross 3 digit mark in near term.
Disclosure :- It is safe to assume that, i have vested interest in it as a share holder.