Shah told CNBC-TV18, "The whole cement industry posted a fabulous number. As most of them saw the huge capacity addition coming into the market but fail to foresee the significant volumes growth, this industry would go through on account of huge infrastructure spend. I think the cement industry is going to do pretty well and whether it is a small player or a big player I think all of them are going to report reasonably good numbers over the next few years because infrastructure spending is huge and this industry is going to see buoyant times for quite a while."
He further added, "Gujarat Sidhee Cement is a very small player in the Gujarat has done pretty well. On just 25% kind of sales growth they have reported almost about 200% kind of profits growth. It is 1.2 million tonne cement plant operating about 125% plus capacity and it is available at a market cap of just Rs 290 crore. This year we are expecting atleast about Rs 4.5 kind of earnings, so quoting at about 20 it is just about 4.5 PE multiple. So we see just about 100% upside in the coming 12 months. I would not shy away from saying that over the next 12-24 months we could see both these companies Gujarat Sidhee and Saurastra Cement either getting merged and being sold off to some foreign player. So there is a very high probability. I think sooner or later this sell off should happen so we are positive on that."
