Binani Cement builds on overseas acquisition

Binani Cement rose 0.49% to Rs 60.95 at 9:56 IST on BSE after the company said on Friday, 28 March 2008, its wholly owned subsidiary Mukundan Holdings has acquired 49% stake in a company in Dubai and 30% stake in Krishna Holdings, Singapore..

The stock hit a high of Rs 61 and a low of Rs 60.80 so far during the day. The stock had a 52-week high of Rs 130 on 16 October 2007 and a 52-week low of Rs 58.75 on 22 June 2007.

The company’s current equity is Rs 203.10 crore. Face value per share is Rs 10.

The current price of Rs 60.95 discounts its Q3 December 2007 annualized EPS of Rs 10.63, by a PE multiple of 5.73.

Binani Cement’s net profit rose 209.2% to RS 53.95 on 41% growth in net sales to Rs 233.31 in Q3 December 2007 over Q3 December 2006.

Following this acquisition, the company and its wholly owned subsidiary Mukundan Holdings now hold 100% of the equity shares of Krishna Holdings.

On 18 March 2008, Binani Cement’s wholly owned subsidiary Mukundan Holdings proposed to acquire 49% of the paid up capital of Binani Cement Factory LLC, Dubai, UAE.

The company is engaged in manufacturing and marketing cement and non-ferrous metal. The group operates in three segments: cement, zinc and by-products and glass fibre.