Sunday, August 14, 2011

INDIA CEMENTS:THE TRADING STOCK

good evening sir,
i m working in sharjah UAE i want to know about INDIA CEMENT it is good stock for invest for 1 year or not and GIVE ME SOME IDEA TO INVEST IN THIS TYPE OF CHOPPY MARKET
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Huzaifa



1.India cement is a 10 rupee face value cement stock with BSE 200.
2.year high of India cement is 127.80 year low 62.10
3.promoter holding 25.35 % and FII holding 26.34% DII holding 17.64% due to this interesting stock holding pattern this is a good trading stock means buy at decline and book 10-15% profit on rising than again buy is a good policy for such type of stock because they are high beta stocks and fluctuate regularly.
4.due to large institutional holding India cement regularly pay dividends.
5.India cement is a high debt company ,The Company's bankers have revised their working capital facility from Rs.41373 lakhs to Rs.107555 lakhs as set out in the resolution.
6.The aforesaid revised working capital facility is, inter alia, required to be secured by second pari passu mortgage and charge ranking subsequent to the charges created / to be created in favour of the term lenders and /or debenture trustees on the immovable and movable properties (other than current assets) both present and future pertaining to cement division of the Company in favour of various Bankers. this is negative point for me.
6. So i do not like India cement for long term holding but i think this is a good trading stock buy at every decline and sell at every rise is a good policy for India cement.
7. i have no any stock of India cement ltd.
key words:- stock market future and option call put option

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