I have added a small cap stock KCP Limited to my portfolio. Also increased my holding in Ujjivan as it came down heavily due to bad results. I still believe Small Banking Licence will be game changer for Ujjivan with Mr. Ghosh at helm. Management has plans to convert Ujjivan into a full scale commercial bank in next 5 years and I am betting on that.
Rational behind adding KCP is its a cement company situated in the border of AP and Telangana. Telangana has acquired 33,000 acres of land for developing their new capital Amaravati. Govt will be spending huge on infrastructure to build the capital city world class. As per reports, the master plan is designed by Singapore Govt and Amaravati will hope to 13.5 million people by 2050. The new capital touches three national highways and seven growth corridors as per report. Cement is a proxy play to housing, construction, roads, waterways, railways, etc. They have done capex recently which will help them in their volume growth.
Apart from Cement they are into sugar, engineering unit, Ethanol Distilleries, hospitality and building materials. They also have huge land bank in Chennai.
Your input/suggestions will be highly appreciated.
Please note that I am not a SEBI registered analyst. Please do due diligence before taking investment decisions.