STOCK WATCH
Within a matter of six months, share price of KLG Systel (335.00) has literally become one third from its recent high in Jan 2008 despite posting robust performance. For the March’08 quarter its topline doubled to Rs 76.50 cr and net profit shot up 75% to Rs 14 cr. The entire FY08 figures are much more impressive as it registered 120% and 140% increase in revenue and profit to Rs 269 cr and Rs 52 cr respectively. Hence it posted an EPS of Rs 45 on current equity of Rs 11.70 cr, but it decalred only 27.50% dividends for FY08 against 25% last year. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. On the other hand, to capitalize the Engineering Services Outsourcing (ESO) potential company has gained engineering design domain-expertise in various industry verticals and has ventured into planning, design and erection of large scale infrastructure projects in India. For FY09 it is expected to clock a turnover of Rs 325 cr and profit of Rs 60 cr i.e. EPS of Rs 45 on estimated diluted equity of around Rs 13.25 cr.
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.
The rising crude oil price is hurting adversly to most of the manufacturing concerns but its indiretly benefiting India Glycols (225.00) since its engaged in production of ethylene oxide (EO)/mono ethyl glycol (MEG) from molasses against the conventional route of making thru crude. So although the price of final product is shooting up its raw material cost is constant thereby boosting its profit margin. It reported stellar performance for March qtr as Sales jumped up 60% to Rs 339 cr and net profit stood at Rs 27 cr against net loss of Rs 1.90 last year. For FY08 its sales was up 50% to Rs 1304 cr whereas PAT more than quadrupled to Rs 178.50 cr thereby registering an EPS of Rs 64 on equity of Rs 27.90 cr. To make itself backward integrated company has set up a new distillery with an annual production capacity of 66000 KBL, at Gorakhpur in Eastern U.P and has also taken over a sugar company called M/s. Shakumbari Sugar. Moreover, it is adding Extra Natural Alcohol (ENA) facility at Gorakhpur to meet the requirement of domestic and International market. Even on a concervative basis, it is expected to clock a turnover of Rs 1500 cr and NP of Rs 165 cr i.e. EPS of Rs 59 on current equity. Its a good opportunity to accumulate this scrip at eveyr decline.
NCL Industries (36.00), the flagship company of the NCL group is engaged in four business segments namely cement, cement bonded particle boards, prefab and hydel power. Presently cement contributes 75% of revenue board and prefabs contribute 20% and balance comes from hydel power. On the back of agressive expansion company has doubled its cement manufacturing capacity to 630,000 TPA and is further looking to triple it to 20 million TPA within couple of years. It has also set up a new particle board manufacturing facility in Himachal thereby taking the total capacity to 80,000 TPA. On the other hand, its prefabricated structures division is witnessing good demand and has bagged huge order worth 50 cr couple of months back. Fundamentally, it recorded 30% growth in sales to Rs 193 cr whereas PBT grew by 45% to Rs 43 cr. Due to high tax provisioning its NP improved marginally by 7% to Rs 29.50 cr posating an EPS of Rs 9 on current equity of Rs 32.50 cr. With rising input cost and interfearance of govt on cement prices, company is estimated to report a topline of Rs 275 cr and maintain its profit of around Rs 30 i.e. EPS of Rs 9 on fully diluted equity of Rs 34.90 cr.
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.
The rising crude oil price is hurting adversly to most of the manufacturing concerns but its indiretly benefiting India Glycols (225.00) since its engaged in production of ethylene oxide (EO)/mono ethyl glycol (MEG) from molasses against the conventional route of making thru crude. So although the price of final product is shooting up its raw material cost is constant thereby boosting its profit margin. It reported stellar performance for March qtr as Sales jumped up 60% to Rs 339 cr and net profit stood at Rs 27 cr against net loss of Rs 1.90 last year. For FY08 its sales was up 50% to Rs 1304 cr whereas PAT more than quadrupled to Rs 178.50 cr thereby registering an EPS of Rs 64 on equity of Rs 27.90 cr. To make itself backward integrated company has set up a new distillery with an annual production capacity of 66000 KBL, at Gorakhpur in Eastern U.P and has also taken over a sugar company called M/s. Shakumbari Sugar. Moreover, it is adding Extra Natural Alcohol (ENA) facility at Gorakhpur to meet the requirement of domestic and International market. Even on a concervative basis, it is expected to clock a turnover of Rs 1500 cr and NP of Rs 165 cr i.e. EPS of Rs 59 on current equity. Its a good opportunity to accumulate this scrip at eveyr decline.
NCL Industries (36.00), the flagship company of the NCL group is engaged in four business segments namely cement, cement bonded particle boards, prefab and hydel power. Presently cement contributes 75% of revenue board and prefabs contribute 20% and balance comes from hydel power. On the back of agressive expansion company has doubled its cement manufacturing capacity to 630,000 TPA and is further looking to triple it to 20 million TPA within couple of years. It has also set up a new particle board manufacturing facility in Himachal thereby taking the total capacity to 80,000 TPA. On the other hand, its prefabricated structures division is witnessing good demand and has bagged huge order worth 50 cr couple of months back. Fundamentally, it recorded 30% growth in sales to Rs 193 cr whereas PBT grew by 45% to Rs 43 cr. Due to high tax provisioning its NP improved marginally by 7% to Rs 29.50 cr posating an EPS of Rs 9 on current equity of Rs 32.50 cr. With rising input cost and interfearance of govt on cement prices, company is estimated to report a topline of Rs 275 cr and maintain its profit of around Rs 30 i.e. EPS of Rs 9 on fully diluted equity of Rs 34.90 cr.
