KAKATIYA CEMENT MULTIBAGGER AT THROWAWAY PRICE

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KAKATIYA CEMENT SUGAR & INDUSTRIES LIMITED (KCSIL) EARLIER KNOWN AS KAKATIYA CEMENTS LIMITED (KCL) WAS INCORPORATED IN THE YEAR 1979 FOR THE MANUFACTURE OF ORDINARY PORTLAND CEMENT . THE COMPANY WAS PROMOTED BY SHRI P .VENKATESH, A REPUTED CIVIL CONTRACTOR WITH EQUITY SUPPORT FROM APIDC. THE INSTALLED CAPACITY OF THE CEMENT DIVISION OF THE COMPANY WAS INCREASED OVER THE PERIOD FROM THE INITIAL 66,000 TPA TO 1,98,000 TPAto 2,97,000 TPA at PRESENT , WHEREAS THAT OF THE SUGAR DIVISION IS INCREASED FROM 2500 TCDto 3200 TCD AT PRESENT . THE CEMENT PLANT OF THE COMPANY IS LOCATED IN NALGONDA DISTRICT OF ANDHRA PRADESH , WHEREAS THE SUGAR AND POWER PLANTS ARE LOCATED IN KHAMAM DISTRICT .
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FOR OVER TWO DECADES , KAKATIYA CEMENT HAS MET DEMAND OF THE CORE SECTORS OF THE COUNTRY WITH ITS QUALITY CEMENTS . WHETHER IT IS CONCRETING RAILWAY SLEEPERS , CEMENTING OIL WELLS OR SHAPING DREAM HOUSES . TODAY KAKATIYA CEMENT IS A REPUTED NAME IN CEMENT INDUSTRY .
SOURCE :WEBSITE
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RECENTLY GOVERNMENT HAS MORE FOCUS ON HOUSING AND INFRASTRUCTURE DEVELOPMENT AND THIS WILL CREATE HUGE DEMAND FOR CEMENT.
KAKATIYA CEMENT HAS RECENTLY AUGMENTED CAPACITY CONSIDERING DEMAND FOR CEMENT AND SUGAR DIVISION ALSO DOING WELL.

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PROMOTERS HOLDING : 53.15%
DII AND FII HOLDING NEGLIGIBLE
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RETURN ON EQUITY OVER 20%
RETURN ON CAPITAL EMPLOYED:OVER 15%
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SALES IN 2016 :210 CR
SALES IN 2017 : 241CR
SALES GROWTH :15%
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EBIDTA IN 2016 :27 CR
EBIDTA IN 2017 : 41CR
EBIDTA GROWTH : 52%
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EPS IN 2016 :28
EPS IN 2017: 37
EPS GROWTH :32%
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HIGHEST TRADED PE IN 2016 : 20
CURRENT TRADED PE:10.7
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HIGHEST TRADED P/B IN 2016 : 2.3
CURRENT TRADED P/B : 1.3
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IF KAKATIYA CEMENT TRADED AT P/E OF 15 AT LEAST THEN ITS PRICE SHOULD BE 37*15=555
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IF KAKATIYA CEMENT TRADED AT PRICE TO BOOK OF 2.3 THEN ITS PRICE SHOULD BE 680 PLUS.
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EXPECTED SALES IN 2018:264CR
EXPECTED EBIDTA IN 2018: 48 CR
EXPECTED EPS IN 2018: 41
EXPECTED PRICE : 492 AT CURRENT PE
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SO OVERALL CONCLUSION IS THAT THE KAKATIYA CEMENT PRICE WILL CROSS 500 TILL 2018.
INTERESTING THING KAKATIYA CEMENT MARKET CAP ONLY 300 CR WHILE ITS PEERS MARKET CAP 10 TIMES MORE THAN THIS.
OTHERS THINGS LAST POST I HAVE MENTIONED NET PROFIT MARGIN WHICH IS BETTER THAN OTHERS COMPANIES.
AND ITS GOING TO BE MULTIBAGGER IN NEXT 2 YEARS.

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DISCLAIMER :I AM HOLDING THE STOCK

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

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