LARGE CAP
Sharekhan & Karvy Stock Broking
GRASIM INDUSTRIES CMP: Rs 1,803

The management expects a 10% volume growth in FY2010 over FY2009. Grasim has raised cement price by Rs 5 to Rs 8 per bag in the past couple of months (February 2008–March 2009) and is expected to sustain the higher price. On the other hand, investment in captive power plant (CPP) will bring down the power cost.

ULTRATECH CEMENT CMP: Rs 566
It has an installed capacity of 19.5 mt, which will rise to 23.1 mt in Q1FY10. The company is in the last leg of its capex plan to the tune of Rs 4,470 crore for increasing capacity by 4.9 mt. The volume growth, which is higher than the industry’s growth, and cost reduction by Rs 288/t would increase its market share by 110 bps.

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