STOCK WATCH
Canfin Homes (Code No: 511196) (Rs.55) has come out with excellent results. For March’06 quarter, wherein its revenue increased by 25% to Rs.44 cr. but its PAT jumped 55% to Rs.11 cr. thereby reporting a quarterly EPS of more than Rs.5. On a yearly basis, its total revenue was up 15% to Rs.148 cr. and its net profit grew by 30% to Rs.27 cr. This translates into a full year EPS of Rs.13 on its equity of Rs.20.50 cr. It declared 25% dividend for which ex-dividend date is 31st May and dividend yield works out to around 4.50%. Since HDFC & UTI have already exited from this company and no further selling is expected from Canara Bank. It is a safe bet in such a dicy market. With a book value of around Rs.80, this scrip is bound to rise 50% from its current levels.
Almost all jewellery scrips sector like Godiam, Classic Diamonds, Vaibhav Gems, Rajesh Exports etc. are trading at rich valuations except Su-raj Diamonds (Code No: 507892) (Rs.58). Its a financially sound and professionally managed company having uninterrupted dividend payment track record. For March’06 quarter, both its sales as well as net profit recorded 45% rise to Rs.385 cr. and Rs.12 cr. respectively, which means an EPS of Rs.3 for the quarter. For full FY06, its turnover grew by 19% to Rs.1220 cr. and profit rose 22% to Rs.37 cr. i.e. an EPS of Rs.9 on its equity of Rs.40 cr. It declared 15% dividend and is available cum dividend. The company has huge reserve of Rs.475 cr., which leads to a book value of around Rs.130. Although the sundry debtors figure is quite high still it’s a value buy and can give handsome returns in the medium term.
Suryavanshi Spinning Mills (Code No: 514140) (Rs.78) is one of the most modern hi-tech spinning mills of South India with an installed capacity of more than 1,00,000 spindles. It is also engaged in knitting, yarn dyeing, fabric dyeing, processing as well as manufacturing of fashionable garments. The company has made a smart turnaround in the last two quarters and has posted stunning results for March’06 quarter while sales spurted by 70% to Rs.96 cr. PAT more than tripled to Rs.3.80 cr. On a full year basis, it recorded a revenue of Rs.231 cr. and profit of Rs.7.84 cr. With sales estimated to touch Rs.350 cr. in FY07, it may report a net profit of Rs.11 cr. which would lead to an EPS of Rs.15 on its diluted equity of Rs.7.15 cr. Couple of months back, it raised money to repay its high-cost debt by making preferential allotment of around Rs.15 lakh shares at Rs.87. Besides, the management is also planning to merge Suryavanshi Textiles its other group company engaged in garment manufacturing with itself.
Nile Ltd (Code No: 530129) (Rs.91) a relatively small company engaged in the business of glass line equipment, lead and wind mill has declared excellent results for the March’06 quarter. Due to higher sales and better operating efficiency, its topline rose by 45% to Rs.19 cr., its bottomline increased substantially to Rs.1.20 cr. compared to Rs.9 lakh last year. For the full FY06, it recorded sales of Rs.57 cr. and net profit of Rs.2.60 and an EPS of Rs.9 on very small equity of Rs.3 cr. and declared 30% dividend also. Considering its March’06 results, the company is estimated to register a topline of Rs.75 cr. and bottomline of Rs.3.50 cr. i.e. an EPS of Rs.12 for FY07. With 52-week high at Rs.140, the share price has the potential to appreciate 50% in 6 months or so. A great buy!
Of-late, the share price of Micro Technologies (Code No:532494 ) (Rs.300) is rising on the back of huge buying by reputed FIIs and mutual funds like HSBC, HDFC, BSMA etc. Fundamentally also, the scrip is quite undervalued as the company is at an inflexion point and will report bumper results for FY07. For March’06 quarter it reported excellent results, whereas for the full year its total revenue more than doubled to Rs.59 cr. and net profit increased by 150% to Rs.17 cr. Due to better product mix, the company’s OPM has improved substantially and stood at 51% for the March’06 quarter Assuming the same track record for FY07, it can report a turnover of Rs.100 cr. and net profit of Rs.29 cr., which means an EPS of Rs.30 on current equity of Rs.9.70 cr. Hence, the share price has the potential to cross Rs.500 Rs.9-12 months. A solid bet for investors who like to play defensive.
Almost all jewellery scrips sector like Godiam, Classic Diamonds, Vaibhav Gems, Rajesh Exports etc. are trading at rich valuations except Su-raj Diamonds (Code No: 507892) (Rs.58). Its a financially sound and professionally managed company having uninterrupted dividend payment track record. For March’06 quarter, both its sales as well as net profit recorded 45% rise to Rs.385 cr. and Rs.12 cr. respectively, which means an EPS of Rs.3 for the quarter. For full FY06, its turnover grew by 19% to Rs.1220 cr. and profit rose 22% to Rs.37 cr. i.e. an EPS of Rs.9 on its equity of Rs.40 cr. It declared 15% dividend and is available cum dividend. The company has huge reserve of Rs.475 cr., which leads to a book value of around Rs.130. Although the sundry debtors figure is quite high still it’s a value buy and can give handsome returns in the medium term.
Suryavanshi Spinning Mills (Code No: 514140) (Rs.78) is one of the most modern hi-tech spinning mills of South India with an installed capacity of more than 1,00,000 spindles. It is also engaged in knitting, yarn dyeing, fabric dyeing, processing as well as manufacturing of fashionable garments. The company has made a smart turnaround in the last two quarters and has posted stunning results for March’06 quarter while sales spurted by 70% to Rs.96 cr. PAT more than tripled to Rs.3.80 cr. On a full year basis, it recorded a revenue of Rs.231 cr. and profit of Rs.7.84 cr. With sales estimated to touch Rs.350 cr. in FY07, it may report a net profit of Rs.11 cr. which would lead to an EPS of Rs.15 on its diluted equity of Rs.7.15 cr. Couple of months back, it raised money to repay its high-cost debt by making preferential allotment of around Rs.15 lakh shares at Rs.87. Besides, the management is also planning to merge Suryavanshi Textiles its other group company engaged in garment manufacturing with itself.
Nile Ltd (Code No: 530129) (Rs.91) a relatively small company engaged in the business of glass line equipment, lead and wind mill has declared excellent results for the March’06 quarter. Due to higher sales and better operating efficiency, its topline rose by 45% to Rs.19 cr., its bottomline increased substantially to Rs.1.20 cr. compared to Rs.9 lakh last year. For the full FY06, it recorded sales of Rs.57 cr. and net profit of Rs.2.60 and an EPS of Rs.9 on very small equity of Rs.3 cr. and declared 30% dividend also. Considering its March’06 results, the company is estimated to register a topline of Rs.75 cr. and bottomline of Rs.3.50 cr. i.e. an EPS of Rs.12 for FY07. With 52-week high at Rs.140, the share price has the potential to appreciate 50% in 6 months or so. A great buy!
Of-late, the share price of Micro Technologies (Code No:532494 ) (Rs.300) is rising on the back of huge buying by reputed FIIs and mutual funds like HSBC, HDFC, BSMA etc. Fundamentally also, the scrip is quite undervalued as the company is at an inflexion point and will report bumper results for FY07. For March’06 quarter it reported excellent results, whereas for the full year its total revenue more than doubled to Rs.59 cr. and net profit increased by 150% to Rs.17 cr. Due to better product mix, the company’s OPM has improved substantially and stood at 51% for the March’06 quarter Assuming the same track record for FY07, it can report a turnover of Rs.100 cr. and net profit of Rs.29 cr., which means an EPS of Rs.30 on current equity of Rs.9.70 cr. Hence, the share price has the potential to cross Rs.500 Rs.9-12 months. A solid bet for investors who like to play defensive.
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