Anjani Portland Cement Ltd : Midcap Cement Player

                    Anjani Portland Cement Ltd : Midcap Cement Player

CMP : 140

BSE CODE : 518091

Market Cap : 352 Crore

LISTED ON : NSE AND BSE

History of the Company :

Anjani Portland Cement Limited was incorporated in the year 1983 at Hyderabad. In 2014, the company was taken over by Chettinad Cement Corporation Pvt Ltd which now holds 75% shares in the company. Starting with initial capacity of 0.30 million tonnes per annum the company has reached 1.20 million tonnes per annum at present of cement manufacturing.

Manufacturing facilities of the company has been graded ISO 9001:2008 , ISO 14001:2004 and BS OHSAS 18001:2007. Company has an integrated cement plant at Nalgonda, Telangana. Company has access to high quality limestone reserves and an established sales network in Andhra Pradesh, Telangana and Odisha.

Company has 16 MW captive power plant and majority of the units generated are consumed by the company for own use. 

Number of Employees on the roll of company was 287 as per the annual report.

Main Business Activities : 

• High Quality Premium Cement ( OPC 53 Grade, OPC 43 Grade, PPC, RHPC Etc.)

Financials of the Company : 

• Profit After Tax (PAT) for the year ended on 31st March,2019 has been reported  at Rs 23 Crore and turnover at Rs 437 Crore.
• As per the numbers as on 31st March,2019 the company has generated Return on Equity of approx. 10% , Return on Capital Employed of 15% and Return on Assets of 9%
• The company is a regular dividend paying company and has paid dividend for past 3 consecutive years.
• Company is Debt-free as on 31st March,2019
• Company has high Operating profit margins in range of 16-26% since past 5 years

Investment Rationale : Why to Invest in this Stock ??

• Shareholding of the promoters in the company is 75% as on 30th June,2019 which strongly indicates interest of promoters in growth of the company. Pledge of shares by the promoter is Zero.
• Market Cap to Sales Ratio : 0.77  is attractive for an cement company company and also provides a great margin of safety on investing at current rates
• Technically on chart the stock appears to be near support levels and in formation of bottom which is going on since past 1-2 months
• At current price of 140 Rs per share and EPS of 13 Rs on trailing basis , the stock is presently trading at an attractive P/E ratio of 11
• At a forward reasonable P/E of 20 and EPS of 15.00, the stock price may go to Rs 300 and higher levels in future

Disclaimer Note: The above is not a research report but information as available on public domain and it should not be treated as a research report. Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.

Disclosure: It is safe to assume that I might have Anjani Portland Cement Limited  in my portfolio and hence my point of view can be biased. Readers should perform own due diligence before investing. We do not assume any responsibility or liability resulting from the use of information , judgments and opinions for Trading or Investment purposes on the Blog.