I also do not expect a good PE levels or PE expansion for cement companies going forward. Here are some other comparisons
Panyam is 157 crs (TTM, till Jun-15) sales with MCap of 158 crs.
Deccan is 562 crs (TTM) sales with MCap of 391 crs
Panyam has done 0.32 crs of profits (TTM, till Jun-15)
Deccan has done 48 crs of PAT (TTM, till Sep-15).
Panyam has D/E ratio of > 5 with -ve reserves (-1.76) on Equity of 16.02. Debts 3 yrs back was 65.28 crs (Mar-13) and currently it is 81.48 crs
Deccan has D/E ratio of 0.65 with reserves of ~160 crs on equity of 7 crs Debts 3 yrs back was 236 crs (Mar-13) and currently it is 160 crs
Panyam has started showing good numbers from last 1/2 qtrs where as deccan has done it for 6 straight quarters.
Rest of the comparison is done by hrfacebuk.
I for sure think that market will value Deccan more than Panyam which it is currently doing it and the gap may increase going forward if they both give same kind of performance going forward.
Disclosure: Had Panyam from 55 levels when one fund was selling but booked 75% profits and moved to Deccan Cements. This is not a long term hold is I believe due to cyclical nature. Will decide holding based on south cements conditions.
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