Date:21/04/2006 URL: http://www.thehindubusinessline.com/2006/04/21/stories/2006042104501700.htm

Back Rain Commodities: Cementing gains

Rain Commodities' is on the radar of a group of investors for its relatively low valuation and possibility of better margins this fiscal.

On Thursday, it finished 5 per cent up at Rs 121.35 on the Bombay Stock Exchange on a traded quantity of 49,269 shares.

According to market sources, the current price realisation for cement in Andhra Pradesh (where its two plants with 1.5 million tonnes are running at over full capacity) is substantially higher than the previous quarter and another price hike of about Rs 10 per bag is expected in May.

"A price increase of Rs 10 for a 50-kg cement bag is likely to ensure an incremental profit of Rs 35 crore for the company for the whole fiscal," a dealer said. Some punters appear to bet on the counter, considering its present market capitalisation, equity size (Rs 22.11 crore) and debt (Rs 180 core).

The stock has moved up by 18.5 per cent in the last one week.

Jayanta Mallick