Kakatiya Cements Sugar & Industries Ltd

[Updated]

BSE Code---> 50023

Book Value -->96

EPS--->Rs.17.86

Dividend--->20% to those who will invest now.

P/E-->6.71 (One of the Cheapest both in the Cement and Sugar Sectors)

Firming up Cement Prices in South to help the company:

Keep Buying Vishal Exports Overseas Ltd ( as it will make huge gains from Carbon Trading expected to start within a short time):

Keep Holding Agro Dutch Industries, Pratibha Industries Ltd, Nagpur Power & Industries Ltd etc:

Kakatiya Cement Sugar & Industries Limited (KCSIL) earlier known as Kakatiya Cements Limited (KCL) was incorporated in the Year 1979 for the manufacture of Ordinary Portland Cement. The Company was promoted by Shri P.Venkateswarlu, a reputed Civil Contractor with equity support from APIDC. The installed capacity of the Cement Division of the Company was increased over the period from the initial 66,000 tpa to 1,98,000 tpa to 2,97,000 tpa at present, whereas that of the Sugar Division is increased from 2500 tcd to 3200 tcd at present. The cement plant of the Company is located in Nalgonda District of Andhra Pradesh, whereas the sugar and power plants are located in Khammam District. For over two decades, Kakatiya Cement has met demands of the core sectors of the country with its quality cements. Whether it is concreting Railway Sleepers, cementing Oil Wells or shaping dream houses. Today Kakatiya Cement is a reputed name in cement Industry. The company is a major player in the Cement Sector in South India with its own Captive Power Plant. A part of the power developed from the power plant which was set up with an estimated cost of Rs. 49 crore, is sold to the Transmission Corporation of Andhra Pradesh (APTransco) and utilising the rest for its Cement & Sugar divisions.

Location of the Cement Site:

The industry is situated in the place where Bulk of High Quality limestone is available for Raw material.The coal reqiured is obtained from Singareni Coal Mines. TechnologyMachines (Kiln Pre-Calcinator) are being imported from Fuller, USA. Standardized products with high quality are obtained using computerised controls.Raw MaterialMining of Premieum grade Limestone is done at SrinivasaNagar in Nalagonda District. Quality:

Kakatiya Cement is awarded with the ISI certificate for it's quality and standards. Because of it's high compressive strength it can be utilized for any construction like multi-storied buildings, flyovers, barriages etc.

It installed a 17 MW COGENERATION POWER PLANT BOILER(high pressure and high temperature) CAPACITY 87 AIA first of its kind in Indian Sugar industry & the same is running successfully.

Location of the Sugar Site:

The industry is situated at a Peruvancha Village, Kalluru Mandal at Khammam Dist., Andhra Pradesh.

Production:

The Sugar Division crushes more than 4.00 lac MT of sugar cane on an average per year.

KAKATIYA CEMENTS PRODUCTS: Kakatiya Cement employs tight controls and cutting edge technology at every step to ensure superior quality. The first to use a computerized planning package for limestone mining, to ensure consistent raw material composition, Kakatiya Cement also remains one of the few who use Automatic Kiln Control software (based on fuzzy logic), to ensure superior clinker quality. The company recently introduced the latest Zero Detect Quality Control technology for cement grinding. Kakatiya Cement was one of the first to get ISI certification in mini Cement Industries. Kakatiya Cement operates two types of Grade cements. One is 53 Grade Cement and another is 43 Grade Cement. Concrete is durable, low maintenance, versatile and cost competitive, making it the material of choice for a wide range of applications. Concrete is extremely versatile, and can be formed into virtually any shape, texture, pattern or color. It is the leading building material in industrialized nations. Kakatiya Cement's construction units specialize in highway paving, bridges, airports and parking lots, as well as municipal and infrastructure work. Kakatiya manufactures high grade of ordinary portland cement(OPC43). Its highest quality cement is most commonly used in the Construction Industry, Dams,Bridges,Multi-storeyed buildings pre-cast concrete works,flyovers,culverts,road works and small residences.Its new 43 grade cement gives very high strength to any kind of constructions. The superior qualities of its cement makes the job get done fast and with lesser materials which translates into time save and money saved.

The magnesia content in the lime stone of its mines is below 1%, due to which the concrete products made of this content will have longer life. TEST CERTIFICATE FOR 53 GRADE ORDINARY PORTLAND CEMENT IS: 12269.

The Book Value of the shares of the company is Rs.96 and the EPS of Rs.17.86 looks good for the short term for investment purpose.

The targets could be between Rs.350--Rs.400 in 12 months time. Keep buying Vishal Exports Overseas Ltd at Rs.3.56, as the company is a player in the Carbon trading which is expected to give them huge gains in the days to come. Keep holding Chandra Prabhu International Ltd ( U can also add at the current price), as there are rumours that the company is venturing into Oil and Exploration drilling. The company's Drilling and Exploration for Coal Division is expected to start from this month onwards as the company has tied up with a number of Overseas partners for this and more than 50% of the Machineries needed for this Exploration work has already arrived. It is turning out to be another Gujarat NRE Coke just wait and watch. The stock has the potential to cross Rs.50 in the next 6 months ----9 months time. By that time its Jatropha Plantations will start to bear fruits and its bio-division will start to function in a full fledged way. Congrats!! to all those who have paid heed to my call at Rs.6.5, Rs.7.5, Rs.8, Rs.8.5 and Rs.9 and is making good gains. This is a Hidden Gem as I mentioned before.

Keep holding Agro Dutch Industries Ltd( Recommended at Rs.23 and Rs.23.5) and Nagpur Power and Industries Ltd(Recommmended at Rs.16 and Rs.17.5; it is hitting continuous circuits). Book some profits in California Software Company Ltd for those who have entered at around Rs.65--Rs.70 range and again enter at dips. Book some profits in Gravity(I) Ltd at the current price of Rs.10.5-Rs.11 range and again enter at around Rs.8.5--Rs.9 levels.

My recommended stock Pratibha Industries Ltd hit the buyer freeze today. More in the following postings.....I am having fever but to certain extent the computer system is now functioning--this is to my relief. But fever will naturally affect the daily updates on the markets.

Best wishes,

Suman Mukherjee

India. www.sumanspeaks.blogspot.com

http://finance.groups.yahoo.com/group/SumanSpeaks/