STOCK WATCH
Once again Micro Technologies (235.00) has announced excellent result for the June’08 qtr. Total revenue as well as net profit shot up 65% to Rs 58 cr and Rs 17.50 respectively. Thus it posted an EPS of Rs 16 in this single quarter itself. For FY08 it had recorded an EPS of Rs 48 with NP of Rs 53 cr on total revenue of Rs 171 cr. Company is a global provider of security, safety and life-support solutions with its first of its kind and innovative products for security of home, office, shop, vehicle, laptop, mobile etc. It also has a business agreement with MTNL as well as Airtel to offer Lost Mobile Tracking system to their customers. Few weeks ago it introduced a GPS based product called Buddy tracking system to know the real time location of users. According to share market condition, company has again reset the FCCB conversion price downwards by 18% from Rs 304 to Rs 250. Although this indicates that bondholders as well as company are very much interested in conversion and not redemption, but this will lead to further equity dilution by 45 lakh shares. For FY09 it is expected to report a topline of Rs 250 cr and bottomline of Rs 70 cr i.e. EPS of Rs 54 on fully diluted equity of Rs 13 cr. Even at modest discounting by 8x times, share price has the potential to hit a new high of above Rs 400 in 12~15 months.
Recently, Ramsarup Industries (120.00) has come out with decent set of nos for the June quarter. Sales grew by 10% to Rs 383 cr but NP increased by 25% to Rs 15.80 cr on the back of better operating margin. Company is engaged in manufacturing of various grades of steel wires (mainly used by power industry) and TMT Bars. To cater the rising demand company is expanding its total wire manufacturing capacities from 233,000 tonnes to 600,000 tonnes including the production of Low Relaxation Pre-stressed Concrete (LRPC) wires over the next two years. It has acquired 60 acres land in West Bengal and major plant and machinery are being imported from Italy. Importantly, to get access to cheaper and regular raw material supply, last year company took over Balasore Minerals Co, which has iron ore, limestone and dolomite mines located in neighboring Orissa state. But more importantly company is merging its other group company called Ramsarup Loha Udyog which is emerging as an integrated steel producer with captive production of sponge iron, pig iron, billets, power etc. As no official figures are available for the group company, so on a standalone basis company is expected to clock a turnover of Rs 1750 cr and PAT of Rs 65 cr for FY09. This translates into EPS of Rs 37 on current equity of Rs 17.50 cr. Post merger equity is expected to get diluted to roughly around Rs 35 cr.
Gujarat Apollo Industries (175.00) is into manufacturing and after sales service of equipments for road building industry like asphat plants, pavers finishers, wet mix plants, bitumen sprayers, compaction equipment, road making machineries, crushing & screeing machines etc. It controls more than 60% of the market in the product segments in which it operates, with over 1,400 customers and an equipment population of around 3,500 units. To consolidate its position, it has been making investments in its associate companies and has already made Apollo Earthmovers and Apollo Industrial Products Ltd as its subsidiaries. In current year, another group company called Apollo Construction Equipments Ltd is expected to come under its fold. For the June’08 quarter, it registered an NP of Rs 7.15 cr on consolidated sales of Rs 61 cr. Accordingly for full year, it may post an sales of Rs 280 cr and PAT of Rs 33 cr which works out to an EPS of Rs 30 on diluted equity of Rs 11.05 cr. Share price has the potential to move up to Rs 240 in short term once the sentiment improves. Accumulate at every decline.
For the June qtr, Lokesh Machines (55.00) reported almost flat nos with NP of Rs 3.10 cr on sales of Rs 20.50. But importantly it reported a higher operating margin of 37% which indicates company may be able to maintain its profit going forward. Secondly gave has declared an dividend of 25% which gives an yield of nearly 5% on CMP. Company is engaged in the design, development and manufacture of custom built special purpose machines and general purpose CNC (computerized numerical controls) machines along with their components. It derives 70% revenue from machining division whereas rest 30% comes from auto component division. It primarily caters to customers in the auto OEM, auto ancillaries and general engineering space. Hence it supplies mainly to Tata Motors, Bajaj Auto, Force Motors, Cummins, Bharat Forge, Kirloskar Oil Engines, Everest Kanto Cylinders etc with separate dedicated facilities for M&M and Ashok Leyland. Although it concentrates mainly on domestic market, but lately it has also made a foray in the overseas markets with good orders. On a conservative basis, for FY09 it can report sales of Rs 110 and PAT of Rs 11 cr i.e. EPS of Rs 9 on equity of Rs 11.80 cr. At a reasonable discounting by 8x times share price may shoot up to Rs 75 within a year
Recently, Ramsarup Industries (120.00) has come out with decent set of nos for the June quarter. Sales grew by 10% to Rs 383 cr but NP increased by 25% to Rs 15.80 cr on the back of better operating margin. Company is engaged in manufacturing of various grades of steel wires (mainly used by power industry) and TMT Bars. To cater the rising demand company is expanding its total wire manufacturing capacities from 233,000 tonnes to 600,000 tonnes including the production of Low Relaxation Pre-stressed Concrete (LRPC) wires over the next two years. It has acquired 60 acres land in West Bengal and major plant and machinery are being imported from Italy. Importantly, to get access to cheaper and regular raw material supply, last year company took over Balasore Minerals Co, which has iron ore, limestone and dolomite mines located in neighboring Orissa state. But more importantly company is merging its other group company called Ramsarup Loha Udyog which is emerging as an integrated steel producer with captive production of sponge iron, pig iron, billets, power etc. As no official figures are available for the group company, so on a standalone basis company is expected to clock a turnover of Rs 1750 cr and PAT of Rs 65 cr for FY09. This translates into EPS of Rs 37 on current equity of Rs 17.50 cr. Post merger equity is expected to get diluted to roughly around Rs 35 cr.
Gujarat Apollo Industries (175.00) is into manufacturing and after sales service of equipments for road building industry like asphat plants, pavers finishers, wet mix plants, bitumen sprayers, compaction equipment, road making machineries, crushing & screeing machines etc. It controls more than 60% of the market in the product segments in which it operates, with over 1,400 customers and an equipment population of around 3,500 units. To consolidate its position, it has been making investments in its associate companies and has already made Apollo Earthmovers and Apollo Industrial Products Ltd as its subsidiaries. In current year, another group company called Apollo Construction Equipments Ltd is expected to come under its fold. For the June’08 quarter, it registered an NP of Rs 7.15 cr on consolidated sales of Rs 61 cr. Accordingly for full year, it may post an sales of Rs 280 cr and PAT of Rs 33 cr which works out to an EPS of Rs 30 on diluted equity of Rs 11.05 cr. Share price has the potential to move up to Rs 240 in short term once the sentiment improves. Accumulate at every decline.
For the June qtr, Lokesh Machines (55.00) reported almost flat nos with NP of Rs 3.10 cr on sales of Rs 20.50. But importantly it reported a higher operating margin of 37% which indicates company may be able to maintain its profit going forward. Secondly gave has declared an dividend of 25% which gives an yield of nearly 5% on CMP. Company is engaged in the design, development and manufacture of custom built special purpose machines and general purpose CNC (computerized numerical controls) machines along with their components. It derives 70% revenue from machining division whereas rest 30% comes from auto component division. It primarily caters to customers in the auto OEM, auto ancillaries and general engineering space. Hence it supplies mainly to Tata Motors, Bajaj Auto, Force Motors, Cummins, Bharat Forge, Kirloskar Oil Engines, Everest Kanto Cylinders etc with separate dedicated facilities for M&M and Ashok Leyland. Although it concentrates mainly on domestic market, but lately it has also made a foray in the overseas markets with good orders. On a conservative basis, for FY09 it can report sales of Rs 110 and PAT of Rs 11 cr i.e. EPS of Rs 9 on equity of Rs 11.80 cr. At a reasonable discounting by 8x times share price may shoot up to Rs 75 within a year
No comments:
Post a Comment