Stocks to buy

Sagar cement is one stock that can be looked at for positional long.Cement prices in AP have goneup by25 to 30 and now around 200to205 level.Another hike of 25 to 30 likely by the end of this week/nextweek.The scrip if crosses 199 can march ahead to 220 and then 260 levels.This purely my opinion.

Sagar Cements Ltd.
502090 SAGARCE Group (S) BSE data
Report card
Attribute Value Date
PE ratio 16.88 12/03/10
EPS (Rs) 10.97 Mar, 09
Sales (Rs crore) 89.53 Dec, 09
Face Value (Rs) 10
Net profit margin (%) 5.35 Mar, 09
Last dividend (%) 25 16/06/09
Return on average equity 8.56 Mar, 09
HOD 188 LOD178.20 CMP 185
with 5% net profit margin its not a good stock to buy and hold thats what I think

The stock last week has aleready touched 198/200 and receded. It is likely that the scrip could breakout 199 and move ahead.

The company is likely to demerge its power business also shortly.

The board has accorded its in principle approval for the merger of Amareswari Cements Ltd, belonging to its promoter group, with Sagar Cements Ltd and to appoint necessary agencies like independent valuers, merchant bankers etc., for the purpose. This merger is subject to various statutory and other approvals and the formalities required to be complied with in connection there with. The Board has also decided to divest Sagar Cement's stake in its subsidiary, Sagar Power Limited to enable the former to focus attention on its core area viz., manufacture of cement.