CHETTINAD CEMENT

Chettinad Cement yesterday hit a new 52-week high at Rs.997. And this was on expectations that it will soon go for delisting and announce a price which could be at a higher premium to the market price. If one may recollect, the company had attempted delisting in May 2012 and it did not go through as its promoters had set the floor price for delisting at Rs.540 a share, which was much below the then market price, which was around Rs.720. Promoters stake currently stands at 88.44%.

The company currently has a cement production capacity of about 11.5 million tonnes (mt) per annum and 105 MW of thermal power capacity, and an additional 35 MW is in the pipeline, across three units in Tamil Nadu. It plans to add 15 mt capacity across South India over the next three years.  It is also setting up a 2 mtpa plant grinding unit in Solapur and this is expected to be operational over the next 8-10 months. For H1FY13, the company posted a net sales at Rs.1268 crore and a net profit at Rs.114 crore. On an equity of Rs.38.20 crore, EPS for HI was at Rs.30 (Rs.10 face value) and our editor, Mr.SP Tulsian expects the company to end FY13, with an EPS of Rs.68-70 as usually, for cement companies, H2 is always the best and he expects price to touch Rs.1100 in next three months or so.