Small & beautiful (Guj)
Crew Bos Products (54.00) is primarily engaged in exporting lifestyle fashion accessories & home decoration products made from fabrics, leather, metal, wood etc. Company has broadly segmented its product portfolio into four divisions - fashion bags and wallets division, belts and footwear division, home goods division and the watch strap division. Its product range represents the international pulse of fashion as it supplies to some of the world’s best and most renowned international brands and retail chains such as Accessorize, Monsoon, Fossil, Marks & Spencer, Esprit, Next, GAP, Old Navy, Zara, Banana Republic, Tesco, H&M, Chico’s, Fat Face, Debenhams, J Jill, AEO, Armani to name just a few. Being very optimistic on the footwear segment has purchased 6 acres of land at Mahindra World City SEZ at Chennai where it is setting up a new plant to produce 10,000 pairs of full shoes per day. Moreover for future growth company has acquired 30 acres of land at Neemrana in Rajasthan for the expansion of its capacities for fashion accessories. It is expected to post an EPS of Rs 11 on diluted equity of Rs 14.07 for FY08. A wonderful opportunity to buy at such cheaper price.
Belonging to well known Ruchi group, National Steel (24.00) has a cold rolling mill and a modern state-of-the-art colour coating line which produces sophisticated and unlimited range of coloured steel with high corrosion resistance. It manufactures galvanized corrugated & plain steel sheets as well as coils under the brand name “APPU” and currently has a capacity of 2,10,000 tonnes of galvanized steel, 2,40,000 tonne of cold roll steel and 80,000 tonne of colour coated line. For FY08 it is expected to clock a turnover of Rs 2000 cr and PAT of Rs 22 cr i.e. EPS of Rs 7 on equity of 32.60 cr. Notably, company has been making highest tax provisioning of more than 35%. However its share price has crashed 50% in this recent carnage and is available fairly cheap at a market cap of around Rs 75 cr. Considering its book value of 58 Rs, scrip has the potential to double in 15`!8 months.
From the recent high of Rs 74 in Jan’08, share price of Anjani Portland (26.00) has almost become one third in last two months. Technically, scrip seems to have bottomed out and can witness a smart recovery as and when sentiment improves. Under the leadership of Mr. K V Vishnu Raju, company has made a strong turnaround in FY07 and is further growing at a healthy pace in FY08. Notably, it has a captive limestone mine, captive power generation unit and state-of-the-art technology from Nihon of Japan. In line with its modernization and diversification plans, company acquired a grinding unit in an open auction conducted by A.P.I.D.C which has further augmented its grinding capacity. On the back of robust performance, company gave maiden dividend of 10% for FY07. For the first three quarters it has already registered 50% growth in sales to Rs 82 cr and 60% rise in NP to 13.70 cr. On an estimated OPM of around 28%, it can record a PAT of Rs 15.50 cr on topline of Rs 115 cr for FY08. This works out to an EPS of Rs 8 on equity of 18.40 cr. A safe bet for 50% return within a year
Mahalaxmi Seamless (23.00) is the leading manufacturers of carbon & alloy steel cold drawn seamless tubes / pipes. With a production capacity of 10,000 MTPA company specializes in heat exchangers / boiler tubes, hydraulic / fuel injection tubes, precision automotive / mechanical tubes etc. It boasts of manufacturing from 4 mm to more than 100 mm outer diameter tubes. Its products are used in various industries like petroleum, chemicals, fertilisers, thermal power plants besides in oil processing, sugar mills and automobile industries. For the first nine months its sales jumped up 40% to Rs 26.50 cr whereas profit shot up 90% to Rs 2.60 cr. Accordingly it is estimated to end FY08 with sales of Rs 35 cr and NP of Rs 3.25 cr leading to an EPS of Rs 6 on equity of Rs 5.30 cr. Share price has come down sharply from the recent high of Rs 71 and is hitting new lows. Although rising steel price is a cause of concern still it’s a good bet at current levels.
Belonging to well known Ruchi group, National Steel (24.00) has a cold rolling mill and a modern state-of-the-art colour coating line which produces sophisticated and unlimited range of coloured steel with high corrosion resistance. It manufactures galvanized corrugated & plain steel sheets as well as coils under the brand name “APPU” and currently has a capacity of 2,10,000 tonnes of galvanized steel, 2,40,000 tonne of cold roll steel and 80,000 tonne of colour coated line. For FY08 it is expected to clock a turnover of Rs 2000 cr and PAT of Rs 22 cr i.e. EPS of Rs 7 on equity of 32.60 cr. Notably, company has been making highest tax provisioning of more than 35%. However its share price has crashed 50% in this recent carnage and is available fairly cheap at a market cap of around Rs 75 cr. Considering its book value of 58 Rs, scrip has the potential to double in 15`!8 months.
From the recent high of Rs 74 in Jan’08, share price of Anjani Portland (26.00) has almost become one third in last two months. Technically, scrip seems to have bottomed out and can witness a smart recovery as and when sentiment improves. Under the leadership of Mr. K V Vishnu Raju, company has made a strong turnaround in FY07 and is further growing at a healthy pace in FY08. Notably, it has a captive limestone mine, captive power generation unit and state-of-the-art technology from Nihon of Japan. In line with its modernization and diversification plans, company acquired a grinding unit in an open auction conducted by A.P.I.D.C which has further augmented its grinding capacity. On the back of robust performance, company gave maiden dividend of 10% for FY07. For the first three quarters it has already registered 50% growth in sales to Rs 82 cr and 60% rise in NP to 13.70 cr. On an estimated OPM of around 28%, it can record a PAT of Rs 15.50 cr on topline of Rs 115 cr for FY08. This works out to an EPS of Rs 8 on equity of 18.40 cr. A safe bet for 50% return within a year
Mahalaxmi Seamless (23.00) is the leading manufacturers of carbon & alloy steel cold drawn seamless tubes / pipes. With a production capacity of 10,000 MTPA company specializes in heat exchangers / boiler tubes, hydraulic / fuel injection tubes, precision automotive / mechanical tubes etc. It boasts of manufacturing from 4 mm to more than 100 mm outer diameter tubes. Its products are used in various industries like petroleum, chemicals, fertilisers, thermal power plants besides in oil processing, sugar mills and automobile industries. For the first nine months its sales jumped up 40% to Rs 26.50 cr whereas profit shot up 90% to Rs 2.60 cr. Accordingly it is estimated to end FY08 with sales of Rs 35 cr and NP of Rs 3.25 cr leading to an EPS of Rs 6 on equity of Rs 5.30 cr. Share price has come down sharply from the recent high of Rs 71 and is hitting new lows. Although rising steel price is a cause of concern still it’s a good bet at current levels.
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