Ashish Chugh’s HIDDEN
……. in search of Market Beating Stocks
E-Mail ID - firstname.lastname@example.org
August 12, 2006
SUBSCRIBERS ON JULY 10, 2006
Andhra Cements Ltd.
CMP – Rs. 30 BSE Code –532141
A part of Duncans Goenka group, Andhra Cements has its plants
located at Vijaywada (now closed down) and Vishakapatnam in
Andhra Pradesh having a total capacity of 1.4 Million Tonnes. The
company sells its product under the brand name “Durga”.
The company which was referred to BIFR long back seems to be
coming back on track and many institutional investors has evinced
interest in the company. The company has seen Equity infusions from
ICICI Bank and JP Morgan. ICICI Bank has picked up a 6% stake in
the company for Rs.10 crores and has also agreed to provide a debt of
Rs.40 crores. JP Morgan has also infused Rs.73 crores into the
company by way of debt and equity. These funds are being utilized for
debt settlement with the Financial Institutions, capacity expansion
and working capital requirements of the company. The company has
completed One Time Settlement with the lenders & currently has
loans only from ICICI Bank which were taken recently. There are thus
no major repayment pressures on the company.
The unit located at Vijaywada has been closed down and the company
plans to sell its 54 acres of land on the recommendation of BIFR to pay
off its creditors.
The company has recently announced its plans to expand its capacity
to 3.0 million tones. With the proposed expansion, the company aspires
to become a sizable player. The cost involved in the expansion is
estimated at Rs.100 crores and is proposed to be funded through a mix
of fresh capital infusion and debt.
The financials of the company are given as under :-
QUARTERLY - LATEST RESULTS - Andhra Cements Ltd (Curr: Rs in Cr.)