STOCK WATCH
Simmonds Marshall Ltd. (Code: 507998) (Rs.45.85) is the market leader in Nyloc nuts and manufactures wide range of world class nuts like flange, cage, weld, cap, castle, couplings, u-nuts, wheel nuts etc. It also has a cold forged automotive components division, which is capable of cold forging small and shallow components for automobile manufacturers and their ancillaries. For H1FY07, while sales grew by 20% to Rs.11 cr., net profit jumped 40% to Rs.1.10 cr. registering half-yearly EPS of more than Rs.5. It may declare 15% dividend for FY07, which gives an yield of more than 3% at CMP. Due to the robust demand for its products, the company is constantly adding and modernising its plant & machinery to enhance its production capacity. On a conservative basis, it is expected to end FY07 with sales of Rs.22 cr. and PAT of Rs.1.80 cr. This works out to an EPS of Rs.9 on a tiny equity of Rs.2.10 cr. Buy immediately as the scrip has the potential to appreciate by 50% in a year’s time
Madhav Marbles & Granites Ltd. (Code:515093) (Rs.132.75) is India’s third largest manufacturer and exporter of granite tiles and slabs. Almost all its entire production is exported to countries like U.S.A., Germany, Holland, U.K, Italy, Spain, Japan, Australia and South Africa. It derives around 55% revenue from the Granite Slabs 30% from granite tiles, 10% from marbles and the rest 5% comes from power and other activities. For H1FY07, its sales and revenue grew by 30% to Rs.48 cr. and Rs.11.50 cr. respectively. However, to cash in on the construction boom, the company has diversified into the realty business comprising Urban Infrastructure, Township, Housing and construction development projects. To fund these plans it, may come out with FCCB/GDR issue in the near future. For FY07, it is estimated to clock a turnover of Rs.100 cr. with PAT of Rs.19 cr. i.e. EPS of Rs.21 on its current equity of Rs.8.95 cr. Buy at declines.
Cubex Tubings Ltd. (Code:526027) (Rs.63.15) is engaged in manufacturing copper and copper alloy tubes, rods, strips, profiles and wires which are used by the core sector and other critical industries such as thermal & nuclear power plants, refinery & petrochemicals, telecommunications, electrical & electronics, defence, condensers & heat exchangers, railways, automobiles etc. Recently, it bagged around Rs.10 cr. order from Siemens for seamless condenser tubes. Its sales & net profit increased by 50% & 60% to Rs.46 cr. and Rs.4.50 cr. respectively for the H1FY07. Earlier this year, the company got permission to import low cost waste and scrap that will reduce the cost of its production. Also as copper prices are in a downward trend since the last few months, it bodes well for the Cubex. For FY07, it may report a topline of Rs.90 cr. with net profit of Rs.9 cr. which will result in an EPS of Rs.12 on its fully diluted equity of Rs.7.70 cr. Buying is strongly recommended as the scrip can give 50% return in 9-12 months.
Kulkarni Power Tools Ltd. (Code:505299) (Rs.112.35) is a leader in the design, engineering, manufacturing and marketing of power tools like drills, grinders, hammers, cutters, polishers etc. used in construction and other industrial activities. Notably, it has developed strong customer alliances with some of the largest retailers and important brand names in the world. It also owns the ‘Powermaster’ brand of professional tools well-known in Asia and Africa. For H1FY07, while its sales improved by 12% to Rs.20.50 cr., net profit spurted by 65% to Rs.1.40 cr. in spite of huge deferred tax provision. For FY07, it is estimated to register sales of Rs.42 cr. with profit of Rs.3 cr. This translates into an EPS of Rs.18 on its very tiny equity of Rs.1.70 cr. Accumulate at sharp declines with a price target of Rs.200 in 15 months or so.
Bhagiradha Chemicals & Industries Ltd. (Code:531719) (Rs.136) is one of India’s largest manufacturers of Chlorpyriphos, the best-selling insecticide used on a wide variety of crops such as cotton, chilli, rice, sorghun, soyabean, sugarcane, groundnut, vegetables, ornamental flowers and plantation crops like citrus, mango, grapevine etc. apart from use in the preservation of wood & timber. For H1FY07, it reported 35% higher sales of Rs.48 cr. with 80% higher net profit of Rs.6.20 cr. over the corresponding previous period. Earlier this year, it entered into an exclusive contract manufacturing agreement with Dow Agro Sciences, Europe, for supply of 200 to 250 tonnes of Fluroxypyr or Methyl Ester Intermediate for 4 years from 2006. Hence for the full year FY07, it may report sales of Rs.100 cr. with net profit of Rs.12.75 cr. recording an EPS of Rs.25 on its low equity of Rs.5.05 cr. At a reasonable discounting of 8 times, the share can cross Rs.200.
Madhav Marbles & Granites Ltd. (Code:515093) (Rs.132.75) is India’s third largest manufacturer and exporter of granite tiles and slabs. Almost all its entire production is exported to countries like U.S.A., Germany, Holland, U.K, Italy, Spain, Japan, Australia and South Africa. It derives around 55% revenue from the Granite Slabs 30% from granite tiles, 10% from marbles and the rest 5% comes from power and other activities. For H1FY07, its sales and revenue grew by 30% to Rs.48 cr. and Rs.11.50 cr. respectively. However, to cash in on the construction boom, the company has diversified into the realty business comprising Urban Infrastructure, Township, Housing and construction development projects. To fund these plans it, may come out with FCCB/GDR issue in the near future. For FY07, it is estimated to clock a turnover of Rs.100 cr. with PAT of Rs.19 cr. i.e. EPS of Rs.21 on its current equity of Rs.8.95 cr. Buy at declines.
Cubex Tubings Ltd. (Code:526027) (Rs.63.15) is engaged in manufacturing copper and copper alloy tubes, rods, strips, profiles and wires which are used by the core sector and other critical industries such as thermal & nuclear power plants, refinery & petrochemicals, telecommunications, electrical & electronics, defence, condensers & heat exchangers, railways, automobiles etc. Recently, it bagged around Rs.10 cr. order from Siemens for seamless condenser tubes. Its sales & net profit increased by 50% & 60% to Rs.46 cr. and Rs.4.50 cr. respectively for the H1FY07. Earlier this year, the company got permission to import low cost waste and scrap that will reduce the cost of its production. Also as copper prices are in a downward trend since the last few months, it bodes well for the Cubex. For FY07, it may report a topline of Rs.90 cr. with net profit of Rs.9 cr. which will result in an EPS of Rs.12 on its fully diluted equity of Rs.7.70 cr. Buying is strongly recommended as the scrip can give 50% return in 9-12 months.
Kulkarni Power Tools Ltd. (Code:505299) (Rs.112.35) is a leader in the design, engineering, manufacturing and marketing of power tools like drills, grinders, hammers, cutters, polishers etc. used in construction and other industrial activities. Notably, it has developed strong customer alliances with some of the largest retailers and important brand names in the world. It also owns the ‘Powermaster’ brand of professional tools well-known in Asia and Africa. For H1FY07, while its sales improved by 12% to Rs.20.50 cr., net profit spurted by 65% to Rs.1.40 cr. in spite of huge deferred tax provision. For FY07, it is estimated to register sales of Rs.42 cr. with profit of Rs.3 cr. This translates into an EPS of Rs.18 on its very tiny equity of Rs.1.70 cr. Accumulate at sharp declines with a price target of Rs.200 in 15 months or so.
Bhagiradha Chemicals & Industries Ltd. (Code:531719) (Rs.136) is one of India’s largest manufacturers of Chlorpyriphos, the best-selling insecticide used on a wide variety of crops such as cotton, chilli, rice, sorghun, soyabean, sugarcane, groundnut, vegetables, ornamental flowers and plantation crops like citrus, mango, grapevine etc. apart from use in the preservation of wood & timber. For H1FY07, it reported 35% higher sales of Rs.48 cr. with 80% higher net profit of Rs.6.20 cr. over the corresponding previous period. Earlier this year, it entered into an exclusive contract manufacturing agreement with Dow Agro Sciences, Europe, for supply of 200 to 250 tonnes of Fluroxypyr or Methyl Ester Intermediate for 4 years from 2006. Hence for the full year FY07, it may report sales of Rs.100 cr. with net profit of Rs.12.75 cr. recording an EPS of Rs.25 on its low equity of Rs.5.05 cr. At a reasonable discounting of 8 times, the share can cross Rs.200.
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