KCP.......
A hidden gem can be considered a golden hen which shall lay golden eggs
for the investors. This is a stock smart investors must accumulate on
delivery basis at the current levels without caring for the index. This
is a specific story which shall generate enormous wealth. A strong
fundamental call getting wings to rock.
Valuation of KCP Ltd.:
KCP ltd. have undergone a capex plan and added cement capacity of 1.50
million tonnes taking their total capacity to 2.20 million tonnes.
Taking thumb rule and assuming that cost of setting up a new plant is
one hundred dollars per metric tonnes then total value of their
cement division works out to be Rs.1100 crores. If we adjust term loan
of Rs.200 crores taken for new cement plant and adjusting another Rs.150
crores of wear and tear of their old plant the net value of their
cement division works out to Rs.750 crores. If we divide outstanding
equity shares of 12.89 crores numbers of shares then we get fair value
of Rs.58.18 per shares against which the stock price as on date is
around Rs.26 levels which means stock is trading Rs.32 per shares less standalone cement division valuation basis. If we take consolidate value
of their other division like engineering, biotech, power then another
Rs.30 per share can be added making total fair value of KCP Ltd around
Rs.88 levels. Then please note the company have huge chunks of land in
Tamil Naidu and AP whose valuation is hidden. The management have taken a
capex plan to set up four star hotel in Hydrabad on their free land
which shall add at least another Rs.10 per shares. Such a mouth watering
valuation stock is available at throwaway price of Rs.26 per share. Just
grab it and hold it to get bumper killing in time to come.
KCP Ltd. is trading right now in gain at Rs. 26.10 per share with a gain of Rs.0.75 which is 2.96% in term of %age while nifty is down in red.
ReplyDeleteKCP Ltd. closed today at Rs. 26.35 per share with a gain of Rs.1.00 per share which is 3.94% in term of %age while nifty closed in red. Three cheers.
ReplyDeleteJust look how smart investors are accumulating the stock from NSE delivery figures:
ReplyDeleteSecurity-wise Delivery Position (31OCT2011)
Quantity Traded 22,714
Deliverable Quantity (gross across client level) 19,016
% of Deliverable Quantity to Traded Quantity 83.72 %
Hold this value stock and add more on decline at its support levels.
The various resistances and support level for today intra day trade of stock KCP Ltd. at NSE is as under:
ReplyDeleteR1:26.17 S1:25.17
R2:26.78 S2:24.78
R3:27.17 S3:24.17
Just see the mind boggling delivery figures at NSE:
ReplyDeleteSecurity-wise Delivery Position (1NOV2011)
Quantity Traded 19,887
Deliverable Quantity (gross across client level) 17,889
% of Deliverable Quantity to Traded Quantity 89.95 %
Three cheers.
The higher the Percent of Deliverable Quantity to Traded Quantity the better especially in the falling market - it indicates that most buyers are expecting the price of the share to go up.
ReplyDeleteBuy KCP Ltd. with a stop loss of Rs.25.
ReplyDeleteQ Cement stocks firm up on price hike buzz. UQ
ReplyDeleteKeep stock KCP Ltd. under your radar list.
technically weekly closing of Rs.27.15 at NSE with high volumes have reversed the trend of the stock from bearish to bullish. If result on 7th is good then immediate first target is Rs.29 and there after Rs.32. One can go long in the stock with stop loss of Rs.25.
ReplyDelete