10.98% DOWN
LTP: Rs 134.55 M Cap: Rs 3,792.71 Cr
Cement stocks had a particularly rough time as the indices were beaten down during the past fortnight. One example is India Cements, which has lost 60 per cent from its December peak. Now, some analysts are suggesting that values in the cement sector are looking good. During this period, HSBC Global Invest Fund (M) Ltd and PAC bought 41.82 lakh shares of India Cement at an average price of Rs 149, raising its stake in the company to about 8.4 per cent. The company is doing well, despite fears of a slowdown in the sector. It reported a 70 per cent increase in
revenues for the quarter ended March 2008 and a 38 per cent rise in EBITDA in the same period. The figures are not strictly comparable on account of the merger ofVisaka Cement with the company. India Cements has acquired the franchise rights for the IPL Chennai Super Kings team for Rs 400 crore, payable over 10 years. Following the success of the IPL, this venture should prove to be a money-spinner for the company in the years ahead.
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