Multibagger Stock – Madras Cements Ltd.

Madras Cements Ltd

  • Madras Cements Ltd People well known as Ramco Cement is a flagship company of the Ramco Group is a business group of South India. It is headquartered at Chennai, Tamilnadu State.  The main product of the company is Production of Portland cement. The company is the fifth largest cement producer in the country.
  • Madras Cemets Ltd has registered decent numbers for the quarter ending March 2012. The company has reported a rise of 25.14% in its net profit at Rs 123.01 crore for the quarter, as compared to Rs 98.30 crore for the same quarter in the previous year. Total income from operations of the company has increased by 29.56% to Rs 995.27 crore for Q1FY13 compared to Rs.768.21 crore for the quarter ended June 30, 2011.
  • Madras Cement Ltd {MCL} posted a sharp growth of 21% in volumes depicting increased cement demand in its key markets i.e. Tamil Nadu, Karnataka and Kerala. Operating profit zoomed about 26% at Rs.312.70 crore as compared to Rs.248.38 crore clocked in the like quarter last year. A realization too has improved about 7% in the quarter. EPS stood higher at Rs.5.17 as against Rs.4.13 in Q1FY12.
  • MCL has commissioned its 2 mtpa cement grinding capacity at Ariyalur which lead to 21.78% and 14% (y-o-y) rise in depreciation and power & fuel cost respectively. The revenue of the cement division stood at Rs.948.33 crore; up by 29.54% on a y-o-y basis. The revenue from its power (windmills) division rose by 27.65% at Rs.40.95 crore as compared to Rs.32.08 crore in year ago quarter.
  • Among strong presence in South India, growing volumes and reducing costs and higher realizations; MCL growth prospects looks attractive. We believe Madras Cement Ltd. is trading at an attractive valuation at 10.62 x and 9.37x of FY13EPS of Rs.17.55 and FY14EPS of Rs.19.89. We initiate a ‘Buy stock’ with the stock target price of Rs.240 (appreciation of about 29%) with the medium to long term investment horizon.
  • Madras Cements (MCL) was established in 1957, is part of Ramco Group, a well known business group of South India. It is based at Chennai. The company is the fifth largest cement producer in the country. Ramco Super grade is the most popular cement brand in South India.

Business area of the company:

  • The main product of the company is Portland cement manufactured through the five advanced production facilities spread over South India. The cement capacity is 10.49 million tons per annum.
  • The company also produces Ready Mix Concrete and Dry Mortar products. In addition, the company also operates one of the largest wind farms in the country.

 Integrated Cement Plants

  • Ramasamy Raja Nagar, Virudhunagar, Ariyalur, Govindapuram, Ariyalur District, Alathiyur, Ariyalur District of Tamil Nadu State.
  • Jayanthipuram, Andhra Pradesh
  • Mathodu, Chitradurga District, Karnataka

Grinding Units

  • Uthiramerur, Kanchipuram District, Valapady, Salem District in Tamil Nadu State
  • Kolaghat, Purba Medinipur District, West Bengal

Packing Terminals

  • Nagercoil Packing Unit, Kumarapuram, Aralvaimozhi, Kanyakumari District, Tamil Nadu
  • Hyderabad Packing Plant, Pochampally Road, Malkapur, Nalgonda District, Andhra Pradesh
  • Today Madras Cements Ltd is not only one of the most respected cement companies in the country but also leads in giving the best return for the investors. With a cement capacity of 10.49 million tons per annum, the company is the fifth largest producer of cement in India. It is also one of the largest wind energy producers in the country with a capacity of 185.59 MW.
  • We Bet The Share Grab Around 188 For Long Term Investment Horizon 240 for 9-12 Months Time Period.