Small & Beautiful (Guj)
Click here to download Gujarati version
Last week, TNPL (98.00) came out with decent set of nos for the March qtr. Sales improved by 10% to Rs 250 cr and PAT increased by 25% to Rs 27.40 cr. For the full year also it registered 10% growth in turnover to Rs 939 cr and 30% rise in net profit to Rs 113 cr, thereby posting an EPS of Rs 16 on equity of Rs 69.20. Despite having significant debt on its book, company follows good dividend payout ratio and declared 45% dividend (incl. interim) for FY08 giving a yield of 4.5% on CMP. Notably, company has completed the phase-I of its mill development plan and its current production capacity stands at 260,000 TPA for pulp and 245,000 YPA for paper with 86 MW power generation facilities. Further company is estimated to have raised its pulpwood plantation by another 12000 acres thereby taking the total to around 31000 acres. Moreover it is setting up a mini cement plant having a capacity of 400 tpd for producing high grade cement using the lime sludge and fly ash generated in the process of manufacture of paper. It is also contemplating to construct an IT Park measuring an office area of 4 lakhs sq. ft. on its surplus land in suburb of Chennai. A good bet in paper sector.
Belonging to well known Firodia group , ZF Steeering (170.00) is market leader in both mechanical and hydraulic power steering gears especially for commercial vehicles and tractor industry. In view of encouraging response from the automobile manufacturers, company is in the midst of further expanding the production capacity to 300,000 units of power steering gears and 150,000 units of mechanical steering gears from 240,000 and 120,000 units respectively. Ironically, ZF has still not tapped the global market which presents a huge opportunity to be explored in future. For FY08 it registered very marginal growth in sales as well as net profit to Rs 223 cr and Rs 27.85 cr respectively. Still this works out to an EPS of Rs 31 on equity of Rs 9.07 cr. Considering its debt free status with healthy cash EPS of Rs 45, huge reserves of Rs 100 cr, strong promoter holding, high dividend yield, company is available extremely cheap at Enterprise value of Rs 155 cr i.e. at an EV/EBIDTA of merely 3x times
Murudeshwar Ceramics (62.00) is one of the leading manufacturers of vitrified tiles, ceramic tiles and granites in India with its popular brand 'NAVEEN’. On the back of constant expansion, its present capacity stands at 6.3 million sq mtr of vitrified tiles, 2.7 million sq mtr of ceramic tiles and only 72,000 sq mtr for granites. It is expected to report a topline of Rs 240 cr and bottomline of Rs 26 cr on conservative basis for FY08 i.e. EPS of Rs 15 on equity of Rs 17.50 cr. Notably, its Cash EPS stands at whopping Rs 30. As current fiscal being a silver jubilee year for the company, it may declare liberal bonus for its shareholders. At CMP, scrip is trading at a P/E ratio of merely 4x times with EV/EBIDTA also around 4 times as the Enterprise value works out to Rs 400 cr which is far below its gross block value of Rs 470 cr. However, icing on the cake is the 20 acres surplus land owned by the company near electronic city where it intends to develop IT park. Share price can easily double in 12~15 months.
Patels Airtemp (60.00) is engaged in the manufacture and sale of extensive range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, air-conditioning and refrigeration equipments and turnkey HVAC projects in India & marketing of equipments even outside India. It has technical collaboration with M/S. TEK FINS Inc. USA for design and manufacture of air cooled heat exchangers. It supplies to core industrial sectors like power, refineries, fertilizers, cements, petrochemicals, pharmaceuticals, textiles and chemical Industries. For future growth company is concentrating more on high value added engineering products and has even got its product the coveted ASME `U' Stamp authorization. For Fy08 is expected to register a topline of Rs 50 cr and profit of Rs 5 cr for FY08. This leads to an EPS of Rs 10 on current equity of Rs 5 cr. As scrip has been consolidating for long time it has made a strong base and can shoot up 50% in 6~9 months.
Murudeshwar Ceramics (62.00) is one of the leading manufacturers of vitrified tiles, ceramic tiles and granites in India with its popular brand 'NAVEEN’. On the back of constant expansion, its present capacity stands at 6.3 million sq mtr of vitrified tiles, 2.7 million sq mtr of ceramic tiles and only 72,000 sq mtr for granites. It is expected to report a topline of Rs 240 cr and bottomline of Rs 26 cr on conservative basis for FY08 i.e. EPS of Rs 15 on equity of Rs 17.50 cr. Notably, its Cash EPS stands at whopping Rs 30. As current fiscal being a silver jubilee year for the company, it may declare liberal bonus for its shareholders. At CMP, scrip is trading at a P/E ratio of merely 4x times with EV/EBIDTA also around 4 times as the Enterprise value works out to Rs 400 cr which is far below its gross block value of Rs 470 cr. However, icing on the cake is the 20 acres surplus land owned by the company near electronic city where it intends to develop IT park. Share price can easily double in 12~15 months.
Patels Airtemp (60.00) is engaged in the manufacture and sale of extensive range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, air-conditioning and refrigeration equipments and turnkey HVAC projects in India & marketing of equipments even outside India. It has technical collaboration with M/S. TEK FINS Inc. USA for design and manufacture of air cooled heat exchangers. It supplies to core industrial sectors like power, refineries, fertilizers, cements, petrochemicals, pharmaceuticals, textiles and chemical Industries. For future growth company is concentrating more on high value added engineering products and has even got its product the coveted ASME `U' Stamp authorization. For Fy08 is expected to register a topline of Rs 50 cr and profit of Rs 5 cr for FY08. This leads to an EPS of Rs 10 on current equity of Rs 5 cr. As scrip has been consolidating for long time it has made a strong base and can shoot up 50% in 6~9 months.
Click here to download Gujarati version
No comments:
Post a Comment