Stock Watch
Gujarat Apollo Inds. Ltd. (Code: 522217) (Rs.124.55) is India's No.1 manufacturer of Asphalt based road construction & maintenance equipment and manufacturers the entire range of equipments for building roads like Asphalt plants, soil stabilization plants, indirect heating equipment, paver finisher, bitumen sprayer, rollers, curb paver and road maintenance equipments like milling machines and recycling machines. For the March ‘07 quarter, its sales grew by 25% to Rs.44 cr. but net profit doubled to Rs.6.55 cr. due to ‘other income’ of Rs.2.60 cr. For full year FY07 sales were up 35% at Rs.141 cr. and net profit increased by 75% to Rs.18 cr. thereby registering an EPS of Rs.17 on its equity of Rs.10.50 cr. To cater to the increasing demand, the company is gradually expanding capacity and has aggressive growth plans for the future. For FY08, it is estimated to clock a turnover of Rs.175 cr. with net profit of Rs.20 cr. i.e. an EPS of Rs.19 on its current equity. Applying a reasonable discounting by 12 times, its share price can go up to Rs.225 in 9-12 months. Moreover, the scrip is expected to get listed in NSE in the near future, which will enhance its liquidity.
Recently, GNFC Ltd. (Code: 500670) (Rs.101) announced encouraging numbers for the March’07 quarter after the merger of Narmada Chematur. On the back of a healthy OPM of 23%, it earned a net profit of Rs.112 cr. on sales of Rs.802 cr. leading to an EPS of more than Rs.7 for the quarter. For the full year FY07, sales and profit stood at Rs.2739 cr. and Rs.326 cr. respectively. This translates into EPS of Rs.21 on its expanded equity of Rs.155.50 cr. The company is working towards converting its Ammonia Feedstock from Low Sulphur Hay Stock (LSHS) to natural gas and will be the first company to do so. Secondly, it is also planning a Nitrous Oxide (N2O) Abatement project under the clean development mechanism, which will fetch an additional Rs.18 cr. through carbon credit. It is gradually ramping up both its methanol plants at an investment of Rs.140 cr. and is putting up a Precipitated Calcium Carbonate plant with a capacity of 100 MTPD. Accordingly for FY08, it may report a total revenue of Rs.3250 cr. and PAT of Rs.410 cr. i.e. EPS of Rs.26 on its current equity. Hence even at a modest discounting by 6 times, its share price can touch Rs.150-160 in the medium-term
Vakrangee Softwares Ltd. (Code: 511431) (Rs.130.80) has been handling election related projects for the Election Commission of India for over a decade. It has got the Electoral Photo Identity card project from the Election Commission, Maharashtra, and also the work of maintaining the Public Facilitation Office under MCA-21 for 20 locations from TCS. The company has also completed a project related to e-governance work for the Registrar of Companies. Couple of weeks back, it reported terrific numbers for the March’07 quarter. Sales jumped up 70% to Rs.38 cr. whereas net profit more than tripled to Rs.10.60 cr. due to higher operating margin. It ended FY07 with topline of Rs.117 cr. (up 130%) and PAT of Rs.24 cr. (against Rs.10 cr.) i.e. EPS of Rs.13 on its diluted equity of Rs.19.15 cr. To fund its growth plans it has issued 22.50 lakh warrants to be converted into equity shares at Rs.241 per share. For FY08, it is expected to earn net profit of Rs.38 cr. on total revenue of Rs.175 cr. i.e. EPS of Rs.18 on its fully-diluted equity of Rs.21.40 cr. Being an operator driven scrip, the share price can shoot up sharply in good market sentiment.
Visu International Ltd. (Code: 590038) (Rs.12.75) is a pioneer in global education and consultancy business is a household name for providing unparalleled coaching and training in pre-requisite tests such as TOEFL, GRE, SAT, GMAT & IELTS. Its core activity lies in assisting students to make the right choice with regard to higher education overseas. Coaching India, its training division with 40 centres across India, successfully trains 30,000 students per annum for pre-requisites tests with very scientific standards. It reported excellent numbers for the March’07 quarter. Its total revenue grew by 20% but net profit doubled to Rs.6.20 cr. due to improved profit margins. For entire FY07, its sales were up 35% to Rs.94 cr. and PAT increased by 125% to Rs.14 cr. i.e. EPS of Rs.4 on its diluted equity of Rs.35.50 cr. For FY08, it may report a topline of Rs.110 cr. and bottomline of Rs.16 cr. i.e. EPS of Rs.4 only on its fully diluted equity of Rs.39.50 cr. the promoters hold only 7% stake and its GDR was issued at Rs.7 per share. Hence it’s a purely a speculative bet.
Recently, GNFC Ltd. (Code: 500670) (Rs.101) announced encouraging numbers for the March’07 quarter after the merger of Narmada Chematur. On the back of a healthy OPM of 23%, it earned a net profit of Rs.112 cr. on sales of Rs.802 cr. leading to an EPS of more than Rs.7 for the quarter. For the full year FY07, sales and profit stood at Rs.2739 cr. and Rs.326 cr. respectively. This translates into EPS of Rs.21 on its expanded equity of Rs.155.50 cr. The company is working towards converting its Ammonia Feedstock from Low Sulphur Hay Stock (LSHS) to natural gas and will be the first company to do so. Secondly, it is also planning a Nitrous Oxide (N2O) Abatement project under the clean development mechanism, which will fetch an additional Rs.18 cr. through carbon credit. It is gradually ramping up both its methanol plants at an investment of Rs.140 cr. and is putting up a Precipitated Calcium Carbonate plant with a capacity of 100 MTPD. Accordingly for FY08, it may report a total revenue of Rs.3250 cr. and PAT of Rs.410 cr. i.e. EPS of Rs.26 on its current equity. Hence even at a modest discounting by 6 times, its share price can touch Rs.150-160 in the medium-term
Vakrangee Softwares Ltd. (Code: 511431) (Rs.130.80) has been handling election related projects for the Election Commission of India for over a decade. It has got the Electoral Photo Identity card project from the Election Commission, Maharashtra, and also the work of maintaining the Public Facilitation Office under MCA-21 for 20 locations from TCS. The company has also completed a project related to e-governance work for the Registrar of Companies. Couple of weeks back, it reported terrific numbers for the March’07 quarter. Sales jumped up 70% to Rs.38 cr. whereas net profit more than tripled to Rs.10.60 cr. due to higher operating margin. It ended FY07 with topline of Rs.117 cr. (up 130%) and PAT of Rs.24 cr. (against Rs.10 cr.) i.e. EPS of Rs.13 on its diluted equity of Rs.19.15 cr. To fund its growth plans it has issued 22.50 lakh warrants to be converted into equity shares at Rs.241 per share. For FY08, it is expected to earn net profit of Rs.38 cr. on total revenue of Rs.175 cr. i.e. EPS of Rs.18 on its fully-diluted equity of Rs.21.40 cr. Being an operator driven scrip, the share price can shoot up sharply in good market sentiment.
Visu International Ltd. (Code: 590038) (Rs.12.75) is a pioneer in global education and consultancy business is a household name for providing unparalleled coaching and training in pre-requisite tests such as TOEFL, GRE, SAT, GMAT & IELTS. Its core activity lies in assisting students to make the right choice with regard to higher education overseas. Coaching India, its training division with 40 centres across India, successfully trains 30,000 students per annum for pre-requisites tests with very scientific standards. It reported excellent numbers for the March’07 quarter. Its total revenue grew by 20% but net profit doubled to Rs.6.20 cr. due to improved profit margins. For entire FY07, its sales were up 35% to Rs.94 cr. and PAT increased by 125% to Rs.14 cr. i.e. EPS of Rs.4 on its diluted equity of Rs.35.50 cr. For FY08, it may report a topline of Rs.110 cr. and bottomline of Rs.16 cr. i.e. EPS of Rs.4 only on its fully diluted equity of Rs.39.50 cr. the promoters hold only 7% stake and its GDR was issued at Rs.7 per share. Hence it’s a purely a speculative bet.
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