Shah told CNBC-TV18, "Shree Digvijay Cement is basically Aditya Birla Group company wherein Grasim is holding about 52% stake in this company. The stock is quoting at about Rs 32 and it has got a small plant, 1.1 million tonne is what it produces at Jamnagar in Gujarat. The company was in losses and still has got accumulated losses for about Rs 150 crore."

He further added, "But recently the company came out with the rights issue and it has reduced its rate by about 60%. So, this year I expect the interest burden to come down substantially. At the same time, what has happened is that its realisation per bag, which last year stood at about Rs 152 a bag is likely to go up to about Rs 185-190 for the current year. So, I expect the company to report a profit of somewhere around Rs 80 crore or so, which would translate to an EPS of about Rs 5 for the current year. So it’s trading at about Rs 33-34, which is about 7 times the current year earnings and looks pretty good for a 50% upside."
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