Deccan Cement - Current mcap ~700 crores
price consolidating since more than 1 year. Good r:r for making fresh entries. Can pick momentum above 510-540.
Some excerpts from crisil report published in feb 23:
- Abundant availability of limestone in its mine and captive power generation result in strong operational efficiency. Thus, operating margin has remained above average even during adverse business cycles.
- Company is having an ongoing capex of around Rs 1218.61 crore which will be funded through term debt of Rs 730 crore and the rest through internal accruals.
At current mcap and current capacity EV/MT comes out to be near 50$
Sanghi deal was done at EV/MT 100$
DCL is having captive power plant and mines.
Company is almost doubling its capacity through current capex and the mcap seems to be undervalued.
FII and DII have also increased stake in past 1 year.
Update on previous post -
Had a good run up of >60% fundamentals seems to be intact.
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