Managalam Cement Ltd -Durable and Dependable

Managalam Cement is producing cement in 43 and 53 grades and Portland Pozzolana Cement (PPC) using the dry process and marketing them under the brand names of Birla Uttam and Mangalam. Manufacturing units of the company namely Neer Shree Cement and Managalam Cement are both located at Morak in the Kota district of Rajasthan.

Managalam Cement Ltd is one of the multibagger Shares, identified by Dynamic Research based on technical and fundamental research.Managalam Cement share price has touched a 52 week high of Rs. 376 on 17 -Aug -2016 and a 52 week low of Rs.147.50 on 12 -Feb -2016, and is currently trading at Rs.360.

Share HoldingThe promoters holding in Managalam Cement stood at 13.28%, while Institutions and Non-Institutions held 14.97% and 71.75% respectively.

Some of the Non-Promoters holding securities more than 1% of total number of shares are

• CAMDEN INDUSTRIES LIMITED:14.31%
• FOREIGN INSTITUTIONAL INVESTORS:9.95%
• ADITYA MARKETING AND MANUFACTURING LIMITED:3.63%
• FOREIGN INDIVIDUALS OR NRI:2.54%
• FINQUEST SECURITIES PVT. LTD. – CLIENT BENEFICIARY A/C:1.63%
• FIDELITY ASIAN VALUES PLC:1.51%

Financial AnalysisQuarterly ResultsFor the quarter ended June 2016, the total income from operations Managalam Cement has reported a growth of 5.51 % on Y-o-Y basis to Rs. 225.17 cr as against Rs. 213.42 cr during the same quarter last year. A enhance in total income from operations suggest strong development in business.The operating profit of Managalam Cement on standalone has shown a growth of 460% Y-o-Y to Rs. 39.05 cr as against loss (Rs. -10.76 cr) during the same quarter last year.The net profit of Managalam Cementhas registered a growth of 220% Y-o-Y to Rs.22.59 cr as against loss of (Rs -18.84 cr) during the same quarter previous year. The increase in net profit is on back of increase in sale and decrease in total expenditure. The earnings per share of the company have grown by 224% Y-o-Y to Rs. 8.73 as against (Rs -7.06) during the same quarter last year.

Annual Results For the year ended March 31, 2016 Managalam Cementon standalone basis reported net sales of Rs. 841.76 cr compared to Rs. 921.85 cr FY2015.For the year ended March 31, 2016 Managalam Cementon standalone basis reported net loss of Rs. -20.47 cr compared to profit of Rs. 17.92 cr FY2015.

Ratio Analysis

The above ratio suggests that the company is operating with a debt-equity ratio of 0.70. Mangalam cement can easily meet up with the interest expenses pertaining to its debt obligations. The company has generated negative returns with shareholders fund, but with improving demand in cement sector we expect it to perform in the coming days.

OPERATING LOCATIONS

• Corporate Office in Kolkata (West Bengal)
• Regional offices at Kota, Jaipur and Delhi
• Wind power at Jaisalmer district (Rajasthan)
• Cement and coal-based power plant at Aditya Nagar, Kota district (Rajasthan)
• Primarily caters to the markets of Rajasthan, Delhi NCR, Madhya Pradesh, Western Uttar Pradesh and Haryana, among others.

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