10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, March 25, 2012

Kakatiya Cements ltd:Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger

Scripscan:Kakatiya Cements ltd

Story:Kakatiya Cement is basically into three businesses. This company is into cement, sugar and power business.In the cement business this company has a capacity of about 3 lakh tonne per annum. The company has a sugar capacity of about 3,200 TCD and a 17 megawatt cogen power capacity.If you look at the financials of the company, FY11 sales were about Rs 100 crore with a small profit of about 4 crore, which is profit after tax. Now in the first nine month of the current financial year company's sales have grown by about 100% to about Rs 120 crore, there is a profit after tax of about Rs 13.4 crore as against a loss of Rs 6 crore, which the company did in the first nine months of the previous financial year. Nine months EPS is about Rs 17; full year EPS can be about Rs 25 so at the current price of Rs 88 the stock is trading at a PE multiple of just about 3.5.This company is almost debt-free.The company has got consistent dividend payment record, for the past 20 years the company has been paying dividend and it has never skipped dividend to the shareholders.If you look at the valuation of the company the market cap of the company at the current market price is about 63 crore.The company has got cash and cash equivalents of about Rs 23-24 crore. So you are getting this company at an enterprise value of about 40 crore. 40 crore enterprise value for a company which has done cash profits in the first nine months of about 19 crore, so you are getting this company at - basically two years of cash flow company which has rewarded its shareholders with dividends for the past 20 years.As there is revival in cement and sugar sector the profitability of the company can go up further and even at the current depressed scenario you are getting this at a PE multiple of just about 3.3.So PE multiple of 3.3 for a debt- free company where the enterprise value is just about two-years of cash flows, I think the stock with all these fundamentals looks undervalued at the current market price.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner