Share Trading Tips

Niraj Cement Structural (Rs.51.00) (Code : 532986) :- Co. is a construction & infrastructure development company with main focus on road segment. It has a small presence in pre cast (paver blocks) segment. It owns a fleet of construction equipments including mechanical paver finishers, transit mixers, porcelain, concrete pumps, batching plants and dumpers. It is executing contracts for Government and Semi Government agencies at
several places in India like Orissa, Jaipur, Indore Mangalore etc. Recently it received the Order from Greater Mohali Area Development Authority, Chandigarh, for construction of 200′ wide road. Importantly, company has not started to bid aggressively for new projects in its individual capacity which will improve its margin going forward. For FY10 its turnover increased by 30% to Rs 185 cr butnet profitimproved by 10% to Rs 8 cr posting an EPS of Rs 8 on equity of Rs 10.30 cr. With massive investment lined up for road development in India by the government, the company is expected to do well. Ironicallt at market cap of Rs 50 cr company is trading at more than 70% discount to its IPO price of Rs 190 in June’08.