SKP Securities’ report on Binani Cement

SKP Securities’ report on Binani Cement
Published: 11 November 2008

Binani Cement Ltd (BCL) has shown a revenue growth of 42% from Rs 218 crores in Q2 FY08 to Rs 310 crores in Q2 FY09. Binani Cement Ltd. (BCL) is a leading Indian cement manufacturer focused on the key markets in Northern India and Western India. BCL manufacture two kinds of cement variants, OPC and PPC. It has a capacity to manufacture 6 MTPA of cement along with 25 MW coal/lignite based captive power plant (CPP). The company is one of the leading cement producers in Rajasthan with a 13% market share and over 45% of sales are dispatched in this state. In Gujarat also the company has the market share of 7%.

At the current price of Rs 30, stock is trading at the P/E of 3.3x of FY10 earnings of Rs 17.49. We continue to be bullish about company’s future growth prospects.