Heidelberg Cement... poised to grow..

BSE Code: 500292

Friends,

I am trying to write on such sector which is totally controlled by the government policies,,,, usually investors do not invest in cement stocks as their growth depends on the policies which are designed by government but we should not leave any chance to pick any stock which has potential in becoming the multi bagger in time to come, to whichever sector does the stock belongs to....

It is a mid-sized cement player with an installed capacity of 3 million tonnes (MT). The company’s plants are located in UP, MP, Maharashtra and Karnataka. Out of the total installed capacity, 50% is in the central region, where prices were up 15% YoY in October 2009. The company has a healthy balance sheet and cash per share of Rs 14 (one-third of CMP).....

Debt is Almost ZERO (0)

Huge Reserves of Around 338 crores... and this is a very good trigger... this may be utilized in promoting further expansion and/OR rewarding shareholders with a bonus issue....

I am writing about Heidelberg cement.. if i go by technicals still i find this stock sitting on a dirt cheap valuations keeping in mind its future growth... its PE is just 5 (industry avg=10) and eps=7.5 ... to my consensus its pe will expand to nearly 9 in coming future... but all things do not in technical way..

in fact nothing goes in technical manner... all depends on fundamentals and moreover on the hands of promoters... in the hand of some power mens who r sitting on the floors and on boards...... i would not like to name any here....

Its old name is mysore cement and heidelberg has taken over it.... They are setting up their NEW plants at Damoh (Madhya Pradesh) and at Jhansi (Uttar Pradesh) to increase cement production capacity from existing from 1.8 MTPA to 4.7 MTPA..... its almost 2.6 times.. its huge in anyway... this expansion has to unlock the value for its investors... Its promoter groups is well known for its quality management.....

In my views this stock has a potential to become a multi bagger in years to come... take your own call.........