Dalmia Cement has target of Rs 253, says Sharmila Joshi, Co-Head PCG Sales, Emkay Global Financial Services.
Joshi told CNBC-TV18, "Dalmia Cement is planning to break into four verticals, cement, sugar, power and refractory. Cement is their main business; 70% of their revenues come from there, 20% from sugar, 10% from refractory business and the power business, which don't give revenues as a separate figure but in the cement part they also have a power unit. So I think that going forward the idea behind having four verticals is that, either they will have four separate companies and have an IPO for each. So we will have to look at the way the company goes ahead and does this and I think that this will definitely unlock value for anyone who has stock before any such move happens."
She further added, "I believe their meeting is today, so we should hear on that. This is a stock that you can buy and even if you look at the cement business, a very steady kind of a performer in the cement space, probably one of the oldest players in the south. Their growth is expected to be more than what the industry growth is, so even from that perspective it's a safe stock. So all things considered, a good stock and I bought it today with a target of Rs 253."
