STOCK WATCH
Tyche Industries (Code:532384) (Rs.32.65) is a custom contract/toll manufacturer of specialty chemicals & intermediates. It is planning to move up the scale as a generic pharmaceutical company and has obtained a drug licence for Sertraline HCI, Venlafaxine HCI, Tamsulosin HCI Sumatriptan Succinate, Propofol, Losartan Potassium, Phenyl Ephrine HCI and Propafenone. It made a sharp turnaround in FY06 as its OPM shot to 24% from 9% in FY05. Maintaining the trend, it reported robust numbers for H1FY07 as sales doubled to Rs.12.60 cr. and net profit jumped up 80% to Rs.2.40 cr. It is planning to enter the regulated markets by filing DMFs with the regulatory authorities in USA and Europe and is also in the process of applying for WHO GMP licence. For FY07, it may register a top-line of Rs.28 cr. and PAT of Rs.4.75 cr., which will lead to an EPS of Rs.5 on its equity of Rs.9.84 cr. Buy on declines
In spite of threats from cheap Chinese import, Murudeshwar Ceramics (Code:515037) (Rs.115.60) continues to report an encouraging topline and bottomline. For Sept.’06 quarter, its sales grew by 35% to Rs.62 cr. whereas net profit increased by 50% to Rs.8.50 cr. Importantly, company is maintaining a healthy profit margin of more than 30%. Last fiscal, it completed the capacity expansion for manufacturing Vitrified Tiles at both Hubli and Karaikal taking the installed capacity to 30,00,000 sq. mt. and 33,00,000 sq. mt. per day respectively. In December’06, the ceramic tile unit at Hubli has become operational with a capacity to produce 12,000 sq. mt. per day. Hence for FY07, it is estimated to clock a turnover of Rs.240 cr. with net profit of Rs.32 cr., which leads to an EPS of Rs.18 on its fully-diluted equity of Rs.17.50 cr. Recently, the company has allotted around 25 lakh preference shares to be converted into equity shares at Rs.124 per share to fund its expansion plans.
Indo Borax & Chemicals Ltd. (Code:524342) (Rs.37) is synonymous with Boric Acid and is referred to as a benchmark for any comparisons made in the industry. It operates a modern boric acid and borax plant at Pithampur near Indore in M.P. In the last two quarters, it reported fantastic numbers and closed the half year ending 30th Sept.’06, marginally improved sales of Rs.10.30 cr. (up by 5%) but net profit increased by 25% to around Rs.2 cr. This is in spite of a sharp reduction in ‘other income’ to Rs.0.27 cr. from Rs.0.93 cr. last year. Hence its OPM has improved dramatically to 28% from 18% in FY05. Even on a conservative basis, the company is expected to clock a turnover of Rs.22 cr. with net profit of Rs.2.50 cr., which leads to an EPS of Rs.7 on small equity of Rs.3.50 cr. The scrip has the potential to once again test its 52W high of Rs.49. However, since boron minerals are not found in India and the basic raw material has to be imported, only risk bearing investors can buy on sharp dips.
Promoted by Andhra Sugars and APIDC, Andhra Petrochemicals (Code:500012) (Rs.12.80) main business is the manufacture and sale of Oxo-Alcohols and it has an installed capacity of around 42,000 MTA. Its products are witnessing strong demand and the company is planning to increase capacity in the near future. Incidentally, as the entire feedstocks and fuels used are petroleum products, the sharp fall in crude oil price will have a very positive impact on its bottom-line going forward. For the Sept.’06 quarter, it has reported stunning numbers. Sales spurted by 60% to Rs.71 cr. whereas net profit shot up by 560% to Rs.8.70 cr. compared to Rs.1.30 cr. last year. Notably, its OPM doubled to 25%. The company has also initiated steps to install Uninterrupted Power Supply (UPS) system to feed all essential equipment drives which will lead to substantial savings in power cost. Assuming an OPM of around 20% for the full year, it can register total revenue of Rs.250 cr. with net profit of Rs.23 cr. This means an EPS of Rs.3 on its equity of Rs.85 cr. Accumulate at declines.
8
In spite of threats from cheap Chinese import, Murudeshwar Ceramics (Code:515037) (Rs.115.60) continues to report an encouraging topline and bottomline. For Sept.’06 quarter, its sales grew by 35% to Rs.62 cr. whereas net profit increased by 50% to Rs.8.50 cr. Importantly, company is maintaining a healthy profit margin of more than 30%. Last fiscal, it completed the capacity expansion for manufacturing Vitrified Tiles at both Hubli and Karaikal taking the installed capacity to 30,00,000 sq. mt. and 33,00,000 sq. mt. per day respectively. In December’06, the ceramic tile unit at Hubli has become operational with a capacity to produce 12,000 sq. mt. per day. Hence for FY07, it is estimated to clock a turnover of Rs.240 cr. with net profit of Rs.32 cr., which leads to an EPS of Rs.18 on its fully-diluted equity of Rs.17.50 cr. Recently, the company has allotted around 25 lakh preference shares to be converted into equity shares at Rs.124 per share to fund its expansion plans.
Indo Borax & Chemicals Ltd. (Code:524342) (Rs.37) is synonymous with Boric Acid and is referred to as a benchmark for any comparisons made in the industry. It operates a modern boric acid and borax plant at Pithampur near Indore in M.P. In the last two quarters, it reported fantastic numbers and closed the half year ending 30th Sept.’06, marginally improved sales of Rs.10.30 cr. (up by 5%) but net profit increased by 25% to around Rs.2 cr. This is in spite of a sharp reduction in ‘other income’ to Rs.0.27 cr. from Rs.0.93 cr. last year. Hence its OPM has improved dramatically to 28% from 18% in FY05. Even on a conservative basis, the company is expected to clock a turnover of Rs.22 cr. with net profit of Rs.2.50 cr., which leads to an EPS of Rs.7 on small equity of Rs.3.50 cr. The scrip has the potential to once again test its 52W high of Rs.49. However, since boron minerals are not found in India and the basic raw material has to be imported, only risk bearing investors can buy on sharp dips.
Promoted by Andhra Sugars and APIDC, Andhra Petrochemicals (Code:500012) (Rs.12.80) main business is the manufacture and sale of Oxo-Alcohols and it has an installed capacity of around 42,000 MTA. Its products are witnessing strong demand and the company is planning to increase capacity in the near future. Incidentally, as the entire feedstocks and fuels used are petroleum products, the sharp fall in crude oil price will have a very positive impact on its bottom-line going forward. For the Sept.’06 quarter, it has reported stunning numbers. Sales spurted by 60% to Rs.71 cr. whereas net profit shot up by 560% to Rs.8.70 cr. compared to Rs.1.30 cr. last year. Notably, its OPM doubled to 25%. The company has also initiated steps to install Uninterrupted Power Supply (UPS) system to feed all essential equipment drives which will lead to substantial savings in power cost. Assuming an OPM of around 20% for the full year, it can register total revenue of Rs.250 cr. with net profit of Rs.23 cr. This means an EPS of Rs.3 on its equity of Rs.85 cr. Accumulate at declines.
8
No comments:
Post a Comment