STOCK WATCH
Real estate scrips are tipped to see a sharp rally on DLF listing. And Hazoor Multiproject (11.50) is one of the cheapest bet having a market cap of merely 25 cr. Recently, it announced another good set of nos for the third quarter ending May 2007. Total revenue grew by 25% to 6 cr whereas NP shot up 70% to 2.40 cr registering quarterly EPS of 1.15 Rs. Company is focusing mainly on real estate development which has now become the core activity. It has flagged off an 80 cr highly luxurious residential project at its own property in Lonavala near Amby Valley. Secondly it’s “HIGH LIFE” residential project at Pune under the joint venture with Bansal builders have been started in full swing and will start generating revenues in coming quarters. For FY07 ending August 2007, it may clock turnover of 25 cr and NP of 7.25 cr which works out to an EPS of more than 3 Rs on fully expanded equity of 8.60 cr having face value of 4/- Rs per share. FY09 will be the bumper year with sales more than 60 cr as its real estate division will contribute in a big way. A pure multibagger, if things pan out as planned.
Andhra Petrochemicals (21.00), the only producer of Oxo-Alcohols in India reported excellent nos for the March quarter. Sales increased by 45% to 82 cr and net profit stood at 16 cr against net loss of 0.85 cr last year. For the full year it recorded sales and NP of 266 cr and 36 cr respectively i.e. EPS of more than 4 Rs. On the back strong turn around and good cash earnings, it declared maiden dividend of 10%. Importantly due to robust demand and higher price realization, its OPM improved drastically to 26% for FY07 compare to 10% last fiscal. Sensing the bright future ahead, Andhra Sugars – the promoters are gradually increasing their stake thru creeping acquisition and has already bought more than 3% stake from open market in last fiscal. Accordingly for FY08, it can report sales of 300 cr and profit of 42 cr i.e. EPS of 5 Rs on equity of 85 cr. Although the dividend yield is quite good but being a commodity scrip investors are advised to remain bit cautious.
Shivalik Bimetals (14.00) specializes in the joining of materials through various methods such as diffusion bonding / cladding, electron beam welding, solder reflow and resistance welding. Its product range includes thermostatic bimetal, CRT components, shunts, snap action disc, precision stainless steel etc which have applications across industries including automotive, aviation, electronics, medical, domestic appliances etc. Financially, over the years company has been a consistent performer with a good dividend track record. For the March quarter its sales grew by 25% to 17.50 cr whereas NP zoomed up 50% to 2.20 cr due to lower tax provisioning. For the entire FY07, its topline remained flat at 62.50 cr but NP increased by 16% to 6.50 on the back of MAT credit This works out to an EPS of 3.40 Rs on small equity of 3.84 cr having face value of 2/- Rs per share. It gave 37.50 % i.e. 0.75 Rs as dividend which gives a yield of more than 5% at CMP of 14 Rs. Although no substantial growth is expected in FY08, still it’s a value buy at current market cap of less than 30 cr.
Indag Rubber (33.00) is one of the reputed players in tyre retreading business. It operates thru franchisee business by offering the technology, specialized equipment, retreading material, technical back up etc to the franchisee. It has a state of the art manufacturing unit to produce precured tread rubber along with allied items like cushion gum, repair gum, envelopes, other accessories and specialized equipment for retreading. Recently, it has set up a new plant in Himachal Pradesh which will give a fillip to its topline in coming quarters. Retreading is basically a process of bonding a new flap of pre-vulcanized rubber in place of the worn-out flap which increases the tyre life. Last year, the joint venture between Indian promoters-Khemka’s and foreign promoters-Bandag Inc, USA was mutually terminated and accordingly Khemka’s acquired the latter’s stake thereby taking their total holding to 81%. Financially, company has made a smart turnaround for FY07 with sales shooting up by 60% to 61 cr and registering a profit of 4.20 cr (incl. EO income) against net loss of 0.40 cr. However, for FY08 it is expected to clock a turnover of 70 cr and PAT of 3.50 cr i.e. EPS of 7 Rs on equity of 5.25 cr. Scrip has the potential to test 50 levels in 9~12 months.
Andhra Petrochemicals (21.00), the only producer of Oxo-Alcohols in India reported excellent nos for the March quarter. Sales increased by 45% to 82 cr and net profit stood at 16 cr against net loss of 0.85 cr last year. For the full year it recorded sales and NP of 266 cr and 36 cr respectively i.e. EPS of more than 4 Rs. On the back strong turn around and good cash earnings, it declared maiden dividend of 10%. Importantly due to robust demand and higher price realization, its OPM improved drastically to 26% for FY07 compare to 10% last fiscal. Sensing the bright future ahead, Andhra Sugars – the promoters are gradually increasing their stake thru creeping acquisition and has already bought more than 3% stake from open market in last fiscal. Accordingly for FY08, it can report sales of 300 cr and profit of 42 cr i.e. EPS of 5 Rs on equity of 85 cr. Although the dividend yield is quite good but being a commodity scrip investors are advised to remain bit cautious.
Shivalik Bimetals (14.00) specializes in the joining of materials through various methods such as diffusion bonding / cladding, electron beam welding, solder reflow and resistance welding. Its product range includes thermostatic bimetal, CRT components, shunts, snap action disc, precision stainless steel etc which have applications across industries including automotive, aviation, electronics, medical, domestic appliances etc. Financially, over the years company has been a consistent performer with a good dividend track record. For the March quarter its sales grew by 25% to 17.50 cr whereas NP zoomed up 50% to 2.20 cr due to lower tax provisioning. For the entire FY07, its topline remained flat at 62.50 cr but NP increased by 16% to 6.50 on the back of MAT credit This works out to an EPS of 3.40 Rs on small equity of 3.84 cr having face value of 2/- Rs per share. It gave 37.50 % i.e. 0.75 Rs as dividend which gives a yield of more than 5% at CMP of 14 Rs. Although no substantial growth is expected in FY08, still it’s a value buy at current market cap of less than 30 cr.
Indag Rubber (33.00) is one of the reputed players in tyre retreading business. It operates thru franchisee business by offering the technology, specialized equipment, retreading material, technical back up etc to the franchisee. It has a state of the art manufacturing unit to produce precured tread rubber along with allied items like cushion gum, repair gum, envelopes, other accessories and specialized equipment for retreading. Recently, it has set up a new plant in Himachal Pradesh which will give a fillip to its topline in coming quarters. Retreading is basically a process of bonding a new flap of pre-vulcanized rubber in place of the worn-out flap which increases the tyre life. Last year, the joint venture between Indian promoters-Khemka’s and foreign promoters-Bandag Inc, USA was mutually terminated and accordingly Khemka’s acquired the latter’s stake thereby taking their total holding to 81%. Financially, company has made a smart turnaround for FY07 with sales shooting up by 60% to 61 cr and registering a profit of 4.20 cr (incl. EO income) against net loss of 0.40 cr. However, for FY08 it is expected to clock a turnover of 70 cr and PAT of 3.50 cr i.e. EPS of 7 Rs on equity of 5.25 cr. Scrip has the potential to test 50 levels in 9~12 months.
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