Sanghi Inds Ltd. - CMP 69
Sanghi Industries is a well integrated cement manufacturing player based in Gujarat with an installed grinding capacity of 4MTPA, clinker capacity of 3.6MTPA and a 60MW multi-fuel power plant. It has next door access to excellent quality raw material lends it the distinction of being the lowest cost cement producer in the state and also leads to production of the best quality cement, therefore it commands a premium price in the Gujarat.
Sanghi generates one of the highest EBITDA per tonne in the western region on account of:
a) lower raw material cost; b) lowest labour cost; and c) lowest power & fuel cost in the industry because of multi-fuel power plant, own jetty to import coal & pet coke and availability of lignite within 43km range.
Future: -
Sanghi is undertaking a comprehensive capacity expansion in a planned and phased manner which will take total capacity of grinding to approx 8mt, clinker to 6.6mt and power to 126MW by 2020. Sanghi has set up terminals at Navlakhi in Gujarat & Dharamtar in Maharashtra and also ordered 2 ships to cater to the market via the coastal route.
One can expect fireworks in this counter within this calendar year!
Excerpts from Edelweiss
Hi sir there are around 832 cr shares pledged by promoters . Is it good share to buy?
ReplyDeleteManagement have pledged shares for expansion purposes. You can see they have increased capacity and their net assets are also up. I def. dont see a problem. Good management and great sector currently to be in. I would strongly go for it. You can see what happened today up by almost 6%. Its a multibagger idea!
DeleteDear Sir
ReplyDeleteI have been holding this share and the major portion of this is my portfolio. Two years back it tested a lot of patience and i exited. Again i re-enter after demonitization. But can you foresee any EPS growth in near future. Because it was not performing eventhough so many other cement stocks became a 4 bagger. Pls advice. Rajesh Kumar
Rajesh shared my view on sanghi on the blog.
DeleteHi Sir any fresh recommendation
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