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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

Sensex (LIVE- Intraday)

Saturday, February 16, 2008

Yuken India Ltd - 200.00 Rs

Yuken India Ltd (YIL) was set up in 1976 in technical and financial collaboration with Yuken Kogya Co Ltd – Japan mainly for the manufacture of oil hydraulic equipment. Since then it emerged as the leading and reputed manufacturer of power saving hydraulic pumps & valves. Its product range consist of all types of hydraulic pumps like vane pumps, piston pumps, gear pumps, pal pumps etc. Under valves, it boasts of manufacturing various types of hydraulic valves for industrial and mobile applications including pressure control valves, modular valves, flow control valves, logic valves, electro proportional valves, servo valves, direction control valves & mobile control vavles. Besides it also manufactures complete hydraulic power units as per customer specifications, cylinders, parison controllers, actuators, accumulators and power packs. Moreover it also supplies related accessories such as cartridge kits, pipe flanges, air bleed valves, act pressure switch, sub plates, MMC manifolds, modular bolt kits, pump mounting brackets, coolers etc. Hydraulic devices are very popular in heavy engineering industry as effective means of automation, hence company’s product find extensive use in various key sectors like machine tools, material handling equipment, construction machinery, drill rigs, automobiles, defence, steel, power & cement plants, plastic machinery etc.

YIL’s operates thru its main foundry plant at Bangalore and four subsidiary companies spread across Bangalore, Hyderabad & Chennai. Its subsidiary Yuflow Engineering manufactures hydraulic cylinders for industrial use, Sriplas Engineering act as an ancillary unit for machined components, Coretec Engineering manufacture iron cores for solenoid valves and Prism Hydraulics to manufacture solenoid coils. Earlier in 1991, company formed a joint venture to manufacture radial piston motors in collaboration with Sai of Italy, the largest manufacturers of radial piston motors in the world. Presently, in order to fulfill the rising demand YIL is implementing a gradual expansion plan to increase its capacity multifold. Accordingly, it has recently doubled its hydraulic casting products capacity to 2400 TPA and is further augmenting it to 6000 TPA within next 2~3 years by installing additional hi-tech machineries in the existing foundry unit. Recently it made a tie up with Hydrocontrols SPA Italy to produce and market state-of-the-art mobile control valves especially for agriculture, construction, earth moving and lifting machineries. Importantly, YIL has forayed into Chinese steel industry by successfully commissioning hydraulic system for a cold rolling mill line in China for M/s Changshu Everbright. In short, apart from catering to domestic market YIL is looking to increase its foothold in international market as well.

Interestingly, YIL runs a 'Hydraulic School' at different levels for its customers to provides hands-on experience and has already trained more than 6,000 engineers from a large number of organizations, both from India and abroad. Financially, company is doing well and has reported a 20% rise in sales to Rs 39 cr and 70% jump in bottomline to Rs 3.90 cr for nine months ending Dec’07. Considering company’s expansion plan and strong demand for its product, it is estimated to report a topline of Rs 100 cr and bottomline of Rs 5.50 cr for FY08. This translates into EPS of Rs 18 on very tiny equity of Rs 3 cr. For FY09, EPS is estimated to shoot up to around Rs 25. Thus investors are strongly recommended to buy as at a reasonable discounting by 12x times, scrip can easily touch Rs 300 in 9~12 months.


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