Interest at cement counters has re-generated as marketmen expect demand for cement to pick up in the next 3-6 months. Says one NSE broker, ``With the government serious about infrastructure projects, the demand for cement would be created.'' Although most cement scrips have been on the rise, Gujarat Ambuja seems to be the clear choice of investors. The rights offer from other two major players, ACC and India Cements has only resulted in investors shifting to the Gujarat Ambuja counter. As per an analyst with Mumbai based research house, ``The cement prices seem to have bottomed out and Gujarat Ambuja is clearly the best managed company in the cementindustry. The company has the lowest cost structure amongst cement manufacturers. One should bet on the best. ''

Agrees a dealer with a leading foreign brokerage house, ``With a world leader like Lafarage buying out Tisco's cement plant, once again interest in cement companies has been generated on the bourses. Gujarat Ambuja has all the ingredients which makes it one of the better companies - a national presence, strong brand equity, low cost of production and innovative marketing strategies.'' Besides, analysts expect the company to report improved performance for the six months ending December 31, 1998. The company is likely to report a net profit of Rs 60 crore for the first half of fiscal 1999. For the first quarter ended September 30, 1998 the company reported a net profit of Rs 17 crore. For the year ended June 30, 1998, the company recorded a sales of Rs 1145.7 crore against Rs 930.2 crore for the year ended June 30, 1997 while the bottomline remained flat at Rs 132 crore over Rs 130.4 crore for theprevious year. Although the company has a lower capacity of 5 million tonnes compared to traditional market leader ACC limited (10 million tonnes) and India Cements (7.5 million tonnes), its innovative marketing strategies make it a force to reckon with. Its brand `Ambuja' commands a premium over other cement brands. Gujarat Ambuja has a 25 per cent market share in Gujarat and 20 per cent in Maharashtra. The company had taken-over Modi Cements which has given it access to eastern markets like Orissa and West Bengal. The company also supplies cement in the southern market through sea.

The company supplies around 6-6.5 lakh tonnes of cement per annum to southern markets through ships. The company currently owns five ships and proposes to construct a jetty with a capacity to handle one million tonne cement. This move is likely to improve its operating profit margins substantially.