Panyam Cement in the limelight

Panyam Cement has adorned a deep hue of green today morning. From yesterday’s close of Rs.81.40, the stock opened at Rs.87 and went up to an intra day high of Rs.90.20. Its 52-week high is at Rs.104.

Call it the effect of our Editor SP Tulsian recommending the stock for investment or whatever but the fact remains that the stock is doing very well today.

In our Market Whispers column, which gets published before the market opens, Mr.Tulsian has said that it is a very good stock for investment. He has said, “Panyam Cements, having cement plant of 3,000 TPD at Kurmool in AP, looks a good buy at Rs. 81, considering its H1 FY16 performance. Company has posted an income of Rs. 120 crores for H1 FY16, against Rs. 90 crores for whole of FY15, with OP placed at Rs. 12.50 crores for H1, while FY15 had operating loss of Rs. 8.60 crores. H1 EPS is also seen quite respectable at Rs. 5.90, against FY15 negative EPS of Rs. 9.50. EV per tonne of the company works out at $30 per MT. Promoter stake of 52%, with 6 investors holding 30%, is also a bullish data, due to low float. Share can move to Rs. 110 in about 6 months. Buy as an investor.”

Looks like investors have paid heed to his words!