Binani Cement a part of Braj Binani Group. The Braj Binani Group is a well-diversified industrial house with a 138-year history behind it. Today, the group is actively working in the core sectors of Cement, Zinc, Glass Fibre and Downstream Composite Products.
Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL), the Braj Binani Group. It?s a cement manufacturer with an asset value of Rs. 1779 crores and a turnover of Rs.1960 crores, with subsidiaries in Dubai, China and expanding by the day. Binani Cement has established itself as one of the top companies in the industry in terms of efficiency and performance.
3 Yr CAGR Sales (%) : 45
3 Yr CAGR Profit (%) : 25
Promoter Shareholding (%) : 64.91
FII Shareholding (%) : 2.39
Return on Equity (%) : 28.24
MCap.(Rs. in Cr.) : 1299
P/E (x) : 5.75
TTM EPS (Rs.) : 11.64
BV (Rs.) : 24.59
Div. Yield (%) : 5.3
FV (Rs.) : 10
Industry P/E: 9.x
Binani has come out with stellar set of back to back quarterly result with earlier quarter at EPS 5.25 and current Quater at 4.98i.e end Sep-09 for Half year EPS is already 10.23 with CMP at Rs. 67 is a bargain buy. Given 3 yr. CAGR profit and slaes growth at 25 and 45% it is a reccomended value pick. Besides in long run cement industry is expected to be one of the key beneficiaries of Infra Growth story.
Given past P/E ratio assigned to Binani Industry of around 8 for trailing earnings stock can be expected to touch 93 - 100 in short term 6 - 9 months i.e arround 50% appreciation from current price.
2 comments:
Very high Debit/Equity ratio. Higher capacity expansion despite the slow demand causing all cement companies. Mangalam and JK Lakshmi cement are value buy than Binani. What you think?
leave me reply at kkronline@gmail.com
@Mitran as you yourself write a lot on stock markets I am sure you understand there are 100's of stock which are either under valued or over valued.
Unfortunately I don't track stocks mentioned by yourself but am sure they will be valued in their own rights.
Just a note that Debt Equity ratio shouldn't be seen in isolation there are other things as 'Return on Equity' ratio and other factors like 3 yr. CAGR Sales Growth / Profit growth are equally important.
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