STOCK WATCH
Belonging to reputed BC Jindal group Jindal Polyfilms (193.00) is India’s largest manufacturer of flexible packaging films like polyester films (BOPET), polypropylene films (BOPP), metallised films and coated films. It expanded its capacity by setting up a greenfeild plant in Silvassa which has recently become fully operational. For the June’07 qtr, its sales jumped up 32% to 289 cr whereas NP shot up by 360% to 38.75 cr registering an EPS of whopping 14/- Rs for the quarter. Importantly it recorded an OPM of more than 23% for the quarter which is very impressive. Hence for current fiscal it can report a topline of 1350 cr and PAT of 110 cr which means EPS of almost 40 Rs on small equity of 28 cr. Incidentally, it is among the very few companies, available at an enterprise value which is lower than its gross block. Its share price is also trading at a deep discount against its FPO price of 360/- Rs. Scrip can easily give 30~40% return in a years time even from current levels.
Goodyear India (177.00), a 74% subsidiary of Goodyear Tire & Rubber Co-USA is engaged in manufacturing of automotive bias tyres mainly for medium commercial truck and farm tyres. It also trades in `Goodyear' branded tyres including radial passenger and off-the-road bias tyres manufactured by Goodyear South Asia Tyres-Aurangabad. For the June’07 qtr, sales improved by 11% to 241 cr but PBT zoomed up 125% to 19 cr on account of better operating margins due to fall in rubber prices. Accordingly for the six months ending June 2007, sales grew by 16% to 440 cr and PBT increased by 60% to 35.50 cr. However on account of higher tax provisioning net profit increased by only 15% to 22 cr. Notably, company has repaid substantial part of its debt and is planning to re-pay the balance soon, thereby making it a debt free company by the end of this fiscal. For FY07 ending Dec’07 it may report a topline of 950 cr and after making highest tax provisioning, PAT may be around 50 cr. This translates into EPS of 22 Rs on equity of 23 cr. With further fall in rubber prices company can report much better margins. Accumulate at declines.
Recently, Rama Papers (31.00) has come out with encouraging result for the June qtr. Sales was almost flat at 21 cr whereas NP increased by 10% to 2.10 cr registering an EPS of 2.20 Rs for the qtr. But the encouraging part is sharp improvement in operating margin. It recorded impressive 23% OPM against 17% last year. This improvement is partly due to commencing of 6 MW co-generation power plant in March’07. Company’s production capacity stands at 44500 TPA and is expected to get enhanced to nearly 60000 TPA by March 2008. Moreover company is putting up an additional line of paper manufacturing machine to produce tissue and post paper with annual capacity of 18380 TPA, for which it has recently taken a term loan from banks. Last fiscal it raised around 16 cr thru equity route by making pref allotment to promoters and others @ 35 Rs. As on today promoters are holding 41% stake. Despite higher interest cost and depreciation it may end FY08 with sales of 100 cr and PAT of 7.50 cr i.e. EPS of 8 Rs on diluted equity of 9.70 cr. Scrip is trading cum dividend of 5%.
Mazda Ltd (71.00) manufactures very specialized & high technology products like vacuum system, critical valves, air pollution control equipment, crystallizers and evaporators. It also has a biotechnology division dealing in carbohydrates, rare sugars & miscellaneous bio-chemicals. Besides it has recently diversified into business of manufacturing food and drink concentrates in a small scale under brandname “BCooL”. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. As company has reported flat nos for the June qtr its share price has come down 70 levels giving a good buy opportunity for long term investors. Presently, under FII category HSBC Financial is holding approx 8% stake which it acquired at 155 Rs in Dec 2006. For FY08 it may clock a turnover of 60 cr and NP of 5.50 cr which means EPS of 13 Rs on small equity of 4.26 cr. With a 52 week H/L as 236 & 58 Rs, scrip is trading fairly cheap at current market cap of 30 cr. A screaming buy.
Goodyear India (177.00), a 74% subsidiary of Goodyear Tire & Rubber Co-USA is engaged in manufacturing of automotive bias tyres mainly for medium commercial truck and farm tyres. It also trades in `Goodyear' branded tyres including radial passenger and off-the-road bias tyres manufactured by Goodyear South Asia Tyres-Aurangabad. For the June’07 qtr, sales improved by 11% to 241 cr but PBT zoomed up 125% to 19 cr on account of better operating margins due to fall in rubber prices. Accordingly for the six months ending June 2007, sales grew by 16% to 440 cr and PBT increased by 60% to 35.50 cr. However on account of higher tax provisioning net profit increased by only 15% to 22 cr. Notably, company has repaid substantial part of its debt and is planning to re-pay the balance soon, thereby making it a debt free company by the end of this fiscal. For FY07 ending Dec’07 it may report a topline of 950 cr and after making highest tax provisioning, PAT may be around 50 cr. This translates into EPS of 22 Rs on equity of 23 cr. With further fall in rubber prices company can report much better margins. Accumulate at declines.
Recently, Rama Papers (31.00) has come out with encouraging result for the June qtr. Sales was almost flat at 21 cr whereas NP increased by 10% to 2.10 cr registering an EPS of 2.20 Rs for the qtr. But the encouraging part is sharp improvement in operating margin. It recorded impressive 23% OPM against 17% last year. This improvement is partly due to commencing of 6 MW co-generation power plant in March’07. Company’s production capacity stands at 44500 TPA and is expected to get enhanced to nearly 60000 TPA by March 2008. Moreover company is putting up an additional line of paper manufacturing machine to produce tissue and post paper with annual capacity of 18380 TPA, for which it has recently taken a term loan from banks. Last fiscal it raised around 16 cr thru equity route by making pref allotment to promoters and others @ 35 Rs. As on today promoters are holding 41% stake. Despite higher interest cost and depreciation it may end FY08 with sales of 100 cr and PAT of 7.50 cr i.e. EPS of 8 Rs on diluted equity of 9.70 cr. Scrip is trading cum dividend of 5%.
Mazda Ltd (71.00) manufactures very specialized & high technology products like vacuum system, critical valves, air pollution control equipment, crystallizers and evaporators. It also has a biotechnology division dealing in carbohydrates, rare sugars & miscellaneous bio-chemicals. Besides it has recently diversified into business of manufacturing food and drink concentrates in a small scale under brandname “BCooL”. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. As company has reported flat nos for the June qtr its share price has come down 70 levels giving a good buy opportunity for long term investors. Presently, under FII category HSBC Financial is holding approx 8% stake which it acquired at 155 Rs in Dec 2006. For FY08 it may clock a turnover of 60 cr and NP of 5.50 cr which means EPS of 13 Rs on small equity of 4.26 cr. With a 52 week H/L as 236 & 58 Rs, scrip is trading fairly cheap at current market cap of 30 cr. A screaming buy.
No comments:
Post a Comment