Small & Beautiful
Last week, ABM Knowledgeware (30.00) came out with satisfactory set of nos for the March quarter. Revenue more than doubled to Rs 7.75 cr whereas PAT zoomed up by 650% to Rs 1.10 cr against 0.15 cr last fiscal. However on QOQ basis its net profit declined by 35% against Rs 1.75 cr in Dec’07. Still for entire FY08 it registered excellent growth as Sales shot up by 55% to Rs 28 cr and PAT zoomed up by 440% to Rs 6.30 cr. Importantly company has paid full tax on the earnings which proves the integrity of its profit. It posted an EPS of Rs 6 on current equity of Rs 10 cr, but declared only 5% dividend same as last year. Company basically offers solutions for e-governance and systems integration apart from having in-depth domain expertise in computerisation of secretariats, municipal corporations, citizen services, land records, utility billing & revenue administration. For future growth company is developing Strategic Business Units (SBU) focused on revenue earning areas, like urban administration, utility and ERP by inducting experienced professionals and laying down quality processes. It may report an total revenue of around Rs 30~32 cr and net profit of Rs 7 cr for FY09 which translates into EPS of Rs 7. Scrip can be bought at current levels.
In the ongoing carnage share price of debt free and well managed company like Elgi Equipment (43.00) has also corrected by more than 50% from its high in Jan 2008. It has reported very encouraging performance for March qtr. Sales improved by 20% to Rs 126 cr whereas PAT shot up 75% to Rs 10 cr. Accordingly, it registered a Net profit of Rs 39.50 on sales of Rs 421 cr for entire FY08. This leads to an EPS of Rs 6 on equity of Rs 6.30 cr having a face value as Rs 1/-. Against this it declared total dividend of 120% for FY08. Company is the market leader and Asia's largest manufacturer of air compressors and automobile service station equipment. To concentrate on each business segment company is hiving off its automotive equipment business into a separate wholly owned subsidiary called ATS-Elgi Ltd. For FY09 it is estimated to post an EPS of Rs 7 which means scrip is currently discounted by around 6x times against its FY09 earnings. Recently, it has incorporated a wholly owned subsidiary in China and has also obtained trade license certificate in connection with setting up of the subsidiary at Sharjah Airport international Free Zone (SAIF) in the United Arab Emirates (UAE). A solid buy for medium to long term.
As per experts the real estate cycle has peaked out and the property prices are poised to correct substantially in near future. Coupled with rising input cost few of the companies are even anticipated to go into red. However, Ansal Housing (90.00) being into construction of integrated township in smaller cities may continue to perform well. For the latest March’08 quarter, on a standalone basis its revenue grew by 20% to Rs 65 cr but its EBIDTA jumped up 50% to Rs 24 cr. Due to higher interest and tax cost its NP remained flat at Rs 13.25 cr. For the full year its total revenue was up 25% to Rs 250 cr and PAT increased by 30% to Rs 55 cr posting an EPS of Rs 31 on current equity of Rs 17.70 cr. This is among the few companies making full tax provisioning which ensures that profits are real. For future growth company has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. It has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Earlier company has made a pref allotment of 17 lac warrants to promoters @ 208 Rs and 29.50 lac warrants @ Rs 225 to others which may not get converted considering the CMP. For FY09 it can report a topline of Rs 300 cr and PAT of Rs 60 cr which translates into EPS of Rs 34 on current equity whereas diluted EPS of Rs 28 on fully diluted equity of around Rs 21.50 cr. A good contrarian bet.
For the latest March’08 quarter Sathavahana Ispat (41.00) has come out with extra ordinary performance. It recorded all time high sales of Rs 139 cr (up 170%) and all time high PAT of Rs 11.70 cr posting an EPS of Rs 3.70 for single quarter. Importantly it reported a very healthy OPM of 27% for the quarter. For the full year it registered 40% increase in sales to Rs 358 cr and 135% rise in NP to Rs 33 cr. This works out to an EPS of Rs 10 on current equity of Rs 31.80 cr. Due to robust pig iron prices, company is doing extremely well with an installed capacity of 210,000 TPA. More importantly company has got itself backward integrated by setting up a 450,000 TPA metallurgical coke plant. It is also in the midst of putting up a 30 MW co-generation power plant which is under trial run and is expected to being commercial production in next couple of months. Few months back company raised more than Rs 30 cr thru pref allotment of 49 lac shares @ Rs 60 per share to Stemcor Holdings Ltd, London and its group companies. Promoters have also subscribed to 6.25 lac equity shares and 15.75 lac share warrants to be converted @ 60 per share. For FY09 it may clock a turnover of Rs 375 cr and PAT of Rs 38 cr i.e. EPS of Rs 11 on diluted equity of Rs 33.50 cr. But at declines.
In the ongoing carnage share price of debt free and well managed company like Elgi Equipment (43.00) has also corrected by more than 50% from its high in Jan 2008. It has reported very encouraging performance for March qtr. Sales improved by 20% to Rs 126 cr whereas PAT shot up 75% to Rs 10 cr. Accordingly, it registered a Net profit of Rs 39.50 on sales of Rs 421 cr for entire FY08. This leads to an EPS of Rs 6 on equity of Rs 6.30 cr having a face value as Rs 1/-. Against this it declared total dividend of 120% for FY08. Company is the market leader and Asia's largest manufacturer of air compressors and automobile service station equipment. To concentrate on each business segment company is hiving off its automotive equipment business into a separate wholly owned subsidiary called ATS-Elgi Ltd. For FY09 it is estimated to post an EPS of Rs 7 which means scrip is currently discounted by around 6x times against its FY09 earnings. Recently, it has incorporated a wholly owned subsidiary in China and has also obtained trade license certificate in connection with setting up of the subsidiary at Sharjah Airport international Free Zone (SAIF) in the United Arab Emirates (UAE). A solid buy for medium to long term.
As per experts the real estate cycle has peaked out and the property prices are poised to correct substantially in near future. Coupled with rising input cost few of the companies are even anticipated to go into red. However, Ansal Housing (90.00) being into construction of integrated township in smaller cities may continue to perform well. For the latest March’08 quarter, on a standalone basis its revenue grew by 20% to Rs 65 cr but its EBIDTA jumped up 50% to Rs 24 cr. Due to higher interest and tax cost its NP remained flat at Rs 13.25 cr. For the full year its total revenue was up 25% to Rs 250 cr and PAT increased by 30% to Rs 55 cr posting an EPS of Rs 31 on current equity of Rs 17.70 cr. This is among the few companies making full tax provisioning which ensures that profits are real. For future growth company has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. It has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Earlier company has made a pref allotment of 17 lac warrants to promoters @ 208 Rs and 29.50 lac warrants @ Rs 225 to others which may not get converted considering the CMP. For FY09 it can report a topline of Rs 300 cr and PAT of Rs 60 cr which translates into EPS of Rs 34 on current equity whereas diluted EPS of Rs 28 on fully diluted equity of around Rs 21.50 cr. A good contrarian bet.
For the latest March’08 quarter Sathavahana Ispat (41.00) has come out with extra ordinary performance. It recorded all time high sales of Rs 139 cr (up 170%) and all time high PAT of Rs 11.70 cr posting an EPS of Rs 3.70 for single quarter. Importantly it reported a very healthy OPM of 27% for the quarter. For the full year it registered 40% increase in sales to Rs 358 cr and 135% rise in NP to Rs 33 cr. This works out to an EPS of Rs 10 on current equity of Rs 31.80 cr. Due to robust pig iron prices, company is doing extremely well with an installed capacity of 210,000 TPA. More importantly company has got itself backward integrated by setting up a 450,000 TPA metallurgical coke plant. It is also in the midst of putting up a 30 MW co-generation power plant which is under trial run and is expected to being commercial production in next couple of months. Few months back company raised more than Rs 30 cr thru pref allotment of 49 lac shares @ Rs 60 per share to Stemcor Holdings Ltd, London and its group companies. Promoters have also subscribed to 6.25 lac equity shares and 15.75 lac share warrants to be converted @ 60 per share. For FY09 it may clock a turnover of Rs 375 cr and PAT of Rs 38 cr i.e. EPS of Rs 11 on diluted equity of Rs 33.50 cr. But at declines.
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As per experts views market is stable and we can trade for best earning. There are many traders who are confused for trading due to lack of knowledge. They can join Epic Research.
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