STOCK WATCH
With the boom in the auto sector on the back of strong industrial growth, the casting industry is reportedly doing very well. Gujarat Intrux Ltd. (Code No: 517372) (Rs.29.30), which is engaged in manufacture of Stainless Steel, Alloy Steel and Non-Alloy Steel castings has come out with good numbers for the Dec’05 qtr. Sales grew by 18% to Rs.4.90 cr. but its NP increased by nearly 50% to Rs.0.61 cr. For full year FY06, it may report NP of Rs.2.10 cr. i.e. an EPS of Rs.6 on its small equity of Rs.3.44 cr. Last year, the company had enhanced its capacity from 100 to 150 MT per month and with ferro alloy (its main raw material) prices expected to remain low, the company is unlikely to face any margin pressure in future. A good bet in the small-cap segment.
Fertilizer scrips are tipped to rise sharply in the near future in anticipation of some favourable announcement in the forthcoming Budget. Liberty Phosphate (Code No: 530273) (Rs.39), one of the low cost manufacturers of single super phosphate (SSP) with 12% market share is the cheapest bet in this sector. For the Dec’05 qtr., its total revenue increased by 21% to Rs.24.50 cr. whereas its NP spurted 87% to Rs.1.12 cr. due to lower tax provisioning. For the full year, it is expected to clock a turnover of Rs.80 cr. and NP of Rs.3.20 cr. This works out to an EPS of Rs.8 on its current equity of Rs.4.13 cr. Its share price can shoot up 30~40% in 6 months or so.
After hitting continuous upper circuits and making an all time high of Rs.305, Eldeco Housing (Code No: 523329) (Rs.237) has corrected sharply to Rs.225 on profit-booking. This North-based housing construction company has under taken several new mega projects worth Rs.250 cr. in Lucknow. Eldeco is fully booked for the next 3 years and its real estate development is going on in full swing. For Dec 05, its total revenue was up 18% to Rs.8.50 cr. whereas its NP has more than trebled to Rs.1.03 cr. For FY06, company is expected to post an EPS of around Rs.25~30 on very tiny equity of Rs.1.97 cr. For FY07, it is estimated to post bumper profit on completion of various projects. Scrip has the potential to test Rs.350 level in a bull market. Hold on to your position.
In spite of high crude oil prices, Laffans Petro (Code No: 524522) (Rs.31) reported pretty decent numbers. For the Dec.’05 qtr. its topline increased by 11% to Rs.38 cr. and its NP grew by 13% to Rs.1.26 cr. For FY06 ending on 30th Sept.’06, the company may report a topline of more than Rs.150 cr. and bottomline of Rs.4.50 cr. leading to an EPS of Rs.6 on its current equity of Rs.8 cr. when its book value is estimated to touch Rs.42. With a market cap of just Rs.25 cr., its share price is sure to rise 50% in 9~12 months. But in spite of being a profit making company, it’s yet to declare a maiden dividend.
When all auto ancillaries are richly discounted even against their expected FY07 earning, Subros (Code No: 517168) (Rs.177) is trading reasonably cheap with low sales to market-cap ratio. Professionally, it’s one of the well-managed companies with a uninterupted dividend track record since 13 yrs. For Dec.’05 qtr., though its Sales were marginally down to Rs.133 cr. its NP increased by nearly 50% to Rs.6.50 cr. due to better operating efficiency. Its OPM improved to 12% from 9% last year. Last fiscal, the company expanded its capacity to 5,00,000 AC units per annum and is now doubling the capacity to 10,00,000 units by setting up plants at Manesar & Pune. Although it is currently supplying to MUL and Tata Motors only, M&M, GM, Ford, ALL, Volkswagen and Renault may start buying from Subros. With an expected EPS of Rs.17 and Rs.20 for FY06 and FY07 respectively, its share price is sure to cross Rs.250 in the medium to long term. A solid buy.
After hitting continuous upper circuits and making an all time high of Rs.305, Eldeco Housing (Code No: 523329) (Rs.237) has corrected sharply to Rs.225 on profit-booking. This North-based housing construction company has under taken several new mega projects worth Rs.250 cr. in Lucknow. Eldeco is fully booked for the next 3 years and its real estate development is going on in full swing. For Dec 05, its total revenue was up 18% to Rs.8.50 cr. whereas its NP has more than trebled to Rs.1.03 cr. For FY06, company is expected to post an EPS of around Rs.25~30 on very tiny equity of Rs.1.97 cr. For FY07, it is estimated to post bumper profit on completion of various projects. Scrip has the potential to test Rs.350 level in a bull market. Hold on to your position.
In spite of high crude oil prices, Laffans Petro (Code No: 524522) (Rs.31) reported pretty decent numbers. For the Dec.’05 qtr. its topline increased by 11% to Rs.38 cr. and its NP grew by 13% to Rs.1.26 cr. For FY06 ending on 30th Sept.’06, the company may report a topline of more than Rs.150 cr. and bottomline of Rs.4.50 cr. leading to an EPS of Rs.6 on its current equity of Rs.8 cr. when its book value is estimated to touch Rs.42. With a market cap of just Rs.25 cr., its share price is sure to rise 50% in 9~12 months. But in spite of being a profit making company, it’s yet to declare a maiden dividend.
When all auto ancillaries are richly discounted even against their expected FY07 earning, Subros (Code No: 517168) (Rs.177) is trading reasonably cheap with low sales to market-cap ratio. Professionally, it’s one of the well-managed companies with a uninterupted dividend track record since 13 yrs. For Dec.’05 qtr., though its Sales were marginally down to Rs.133 cr. its NP increased by nearly 50% to Rs.6.50 cr. due to better operating efficiency. Its OPM improved to 12% from 9% last year. Last fiscal, the company expanded its capacity to 5,00,000 AC units per annum and is now doubling the capacity to 10,00,000 units by setting up plants at Manesar & Pune. Although it is currently supplying to MUL and Tata Motors only, M&M, GM, Ford, ALL, Volkswagen and Renault may start buying from Subros. With an expected EPS of Rs.17 and Rs.20 for FY06 and FY07 respectively, its share price is sure to cross Rs.250 in the medium to long term. A solid buy.
No comments:
Post a Comment