Financial Daily from THE HINDU group of publications
Sunday, Dec 28, 2003
Financial Daily from THE HINDU group of publications Sunday, Dec 28, 2003 |
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Investment World
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Stocks Markets - Recommendation Madras Cements: Buy S. Vaidya Nathan
Investments can be contemplated in the stock of Madras Cements at Rs 808, as there appears to be room for appreciation linked to fundamentals. The company is set to benefit from the higher level of cement prices in its key markets of Tamil Nadu and Kerala. As the operating rates improve, there would be support to topline and earnings from higher volumes. Madras Cements as well as other players in the south had been operating their facilities at less-than-optimal levels due to sluggish demand and oversupply. For Madras Cements, the improvement in price levels would have a pronounced effect on earnings due to its high operating efficiencies. The performance in January-March quarter may also get a boost from the good rainfall from the North-East monsoon except in a few districts of Tamil Nadu. Good debt management and growth bankrolled by debt and internal accruals continue to be positives for the stock. The improvement in liquidity following the recent stock split augurs well.
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