Flash News Investment - - RECOMMENDATIONS -

The com­pany is en­gaged in man­u­fac­tur­ing of ce­ment and ready-mix con­crete. It is a pan-In­dia player and the ge­o­graph­i­cal mix in­cludes North (18 per cent), South (30 per cent), West (12 per cent), East (27 per cent) and Cen­tral (13 per­cent). The com­pany had com­mis­sioned Ja­mul and Sin­dri plants in H2CY16 by tak­ing the ca­pac­ity from 2.8 MT to 33.4 MT. This ca­pac­ity ramp-up led to growth in vol­umes in CY17 and CYH118 and also helped com­pany to gain its lost mar­ket share. It has re­newed the tech­nol­ogy and know-how agree­ment from Jan. 1, 2018 for a pe­riod of three years. Also, the board has ap­proved mas­ter sup­ply agree­ment (MSA) with Am­buja Ce­ments for three years which will bring in syn­ergy ben­e­fits. This year’s nor­mal mon­soon is ex­pected to bring uptick in de­mand in con­struc­tion and in­fra­struc­ture sec­tors. Thus, we rec­om­mend it as a BUY.

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