STOCK BUZZ

DLF has written back Rs 800 crore from Q4 profit before tax (PBT) on reversal of sale to DLF Assets, reports CNBC-TV18. DLF’s Q4 PBT could have been Rs 3,500 crore versus the reported Rs 2,704 crore. The reversal of sale is on account of properties not qualifying as IT/ITes SEZs. DLF Assets has raised USD 450 million from London-based Symphony Capital, said Rajiv Singh, Vice-Chairman, DLF. CNBC-TV18 had reported earlier that DLF Assets Ltd was to take the private trust route instead of REIT till markets stabilize.

Today the markets have rebounded in US and we expect the Bombay markets to follow suite: Buy Century Textiles & Industries Ltd. buy at Rs. 730 with the stock trading at it lower end of 52 week high/low (1275.00 - 491.50), we recommend a buy,buy, buy ( Mad money style) for the stock and hold for 3 months. With a proven sales figures and solid earnings per share, We expect a yield of at least 30%. some news for this script in the past: Century Textiles & Industries Ltd has informed that the Board of Directors of the Company at its meeting held on January 25, 2008, inter alia, has transacted the following - The following expansions of manufacturing capacity have been approved by the Board: a. To set up a 500 tonnes per day capacity Multilayer Packaging Board Plant including 40 MW Steam Turbine, at a total capital outlay of upto Rs 775 crore, which is expected to be operational by about September, 2009. b. To install a 450 tonnes per day capacity Paper Grade Pulp Plant (Fibreline...

Is Government trying to regulate the cost of Cement to lower the infrastructure cost Government is in dual mode of increasing excise duty and making sure cement cost is locked for year time. Raising the excise duty and expecting the cement industry to not raise prices will give governement additional money. The rise in cement prices is transferred to higher real estate costs, which are already sky high in India. This way, the FM is trying to make money from a flourishing industry without giving them the incentive to raise money and indirectly curbing inflation. This dual Excise structure is absurd and impractical. In fact I firmly believe that the FM was merely trying to increase excise duty rates on Cement. He has managed to paint it as an exercise in price control. A shrewd way of raising the excise and not being blamed for the price rise. Prices of all commodities have sky rocketed but cement seems to be drawing most of the flak. It is probably true that the cement companies are min...

India is the second largest producer of cement in the world after China, accounting for about 6-7 per cent of the world capacity. The production grew by a record 15% to 94.21 mn tonnes in 1999-2000. A As on March 31, 2000 there were 113 large plants, accounting for 92% of the total capacity and 300 white and mini plants in India. There is a high degree of fragmentation in the industry with over 60 players, but the top 5 players account for over 50% of the capacity. Within the next 3-5 years the industry is expected to be dominated by five to six big players and less than ten companies in all, both Indian and foreign. There has been an increased level of MNC activity in the domestic market, with strategic tie-ups, mergers and acquisitions. Summary : Invest in Cement Sector and expect good returns by year End Based on Sales Sales ( Rs Mn ) % Change Ambuja Cement 62075.70 139.33 ACC Ltd 57169.80 80.91 Ultratech Cement 49090.50 48.63 India Cement 22552.06 47.30 Shree Cement 14030.47 101.93

Buy Grasim Cement and target Rs 3558 Grasim’s core businesses – cement and VSF – are witnessing strong business upcycle. The performance of its sponge iron and chemicals businesses is also set to improve. We estimate EPS at Rs281.7 for FY08 and Rs274.7 for FY09. Our SOTP-based valuation of Rs3,558 indicates an upside of 21%. We reiterate Buy. Cement – timely capacity addition to drive growth: With inflation waning, we see signs of attenuation of state intervention in cement pricing. Demand-supply remains in the industry’s favor, and given the strong demand drivers and possible delays in new capacity additions, the upturn in the cement cycle could be prolonged. Grasim's timely capacity addition would help drive volume growth, and cost cutting would enhance competitiveness.