Buy Dalmia Bharat, advises Mehraboon Irani

Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "We are buying into Dalmia Bharat, which is a cement stock which we feel would be the proxy for the entire cement sector and we are advising our clients to put in about 5 percent of their portfolio money into Dalmia Bharat."

"A company with 9 million tonne should become a 23 million tonne company by April 2015. There are only three companies in India today which are about 20 million tonne,ACC, Ambuja Cements and UltraTech Cement, which puts it straight in the big league and once that happens, more and more attention from bigger funds, bigger houses will come in. The stock lacks a little bit of liquidity. In the last one week, the stock has moved up sharply from Rs 415 to Rs 475-480 on the volumes of hardly 5 lakh shares. So you can imagine, if bigger fund houses start taking interest in this stock, what can happen to the stock," he said.

"I personally feel the stock should be Rs 700-800 stock in the next 12 months time and I promise that more powerful houses will come and recommend this stock at a price much higher than today’s price because the stock will then start attracting attention. As far as I understand, there should be no equity dilution, it is debt funded, they have acquired OCL units and has acquired Adhunik Cements, so expansion is well into play. So I think by April 2015 when the expansion is coming into force and more and more people talk about it, this stock should attract more attention. This is one company which we like."