STOCK WATCH
Q3 results have started flowing in and as usal the companies with encouraging nos will out perform others. In such a scenario Eastern Silk (248.00) looks good. For the Dec qtr, sales have jumped up 35% to 169 cr and NP also increased by 40% to 25.50 cr posting a quarterly EPS of whopping Rs 16. It is among the few integrated players in textile registering an OPM & NPM of more than 20% & 10% respectively. It has recently completed expansion programme at its Anekal’s Unit 2 facility thereby taking the total fabric manufacturing capacity to 18.5 lac metres from 14 lac metres per annum. It is also setting up made-up plant at Bommasandra near Bangalore having an installed capacity of 1500 sets per day with an investment of 18 cr. For entire FY08 it is estimated to register sales of Rs 600 cr and PAT of Rs 80 cr. This translates into EPS of Rs 51 on equity of 15.80 cr. For future growth, company is looking to make some foreign acquisition for which it may raise 240 cr thru FCCB/GDR route. It is also contemplating to split the face value of share to 2/- Rs from 10/- Rs which will improve the liquidity going forward. A good bet in textile space.
Recently, JK lakshmi Cement (168.00) came out with decent set of nos. For the Dec qtr it sales improved by 25% to Rs 282 cr but NP grew by only 10% to Rs 61 cr due to higher interest and depreciation cost. But if we consider year to date figures upto Dec 2007, it has recorded 40% rise in sales to 816 cr and 75% increase in PAT to 203 cr. Interestingly, its nine month profit has already surpassed the entire FY07 profit of 178 cr by huge margin. To maintain its growth company is further expanding its capacity to 5 million from 3.4 million tonne by Oct 2008. On the other hand, it is betting high on RMC business as it has great potential along with high margins. Accordingly for FY08, it is now estimated to clock a turnover of Rs 1100 cr and net profit of Rs 250 cr which translates into EPS of Rs 44 on current equity and EPS of Rs 41 on diluted equity of Rs 61 cr. For future, it is contemplating to set up a Greenfield cement plant near Bhilai, Chhattisgarh with a capacity to produce 2.5 million tonne and hence looking to apply for limestone mining lease. A solid buy.
Post its Dec results share price of Kamanwala Housing (163.00) has tumbled down sharply as they don’t look so encouraging when compared to Dec’06 nos. Its revenue declined by massive 75% to Rs 16.50 cr whereas profit declined by only 20% to Rs 5 cr. But being in the real estate & construction sector and following the revenue model on sale of agreement basis, company is bound to post erratic and lumpy results on quarterly basis. Hence the picture changes for the combine nine months figures. Till now in this fiscal, it reported flat revenues to the tune of Rs 67.50 cr but profit shot up 80% to Rs 15 cr on the back of rising real estate prices. Copamy is mainly operating in Mumbai and has few good residential projects in Malad & Santacruz and huge commercial project in Bandra Kurla complex. It has several projects lined up for future in Andheri, Mahim, Goregaon etc and even in Hydrabad. Recently it also bought 10,000 sq mtr land in Turbhe for 15 cr. To sum up, company ia available fairly cheap at a market cap of less than Rs 100 cr. It can easily appreciate 50% from hereon.
Few days back Vakrangee Software (248.00) also came out with stunning nos for the Dec qtr. It recorded 100% growth in topline as well as bottomline to Rs 60 cr and Rs 13.50 cr respectively thereby posting an EPS of Rs 7 for the quarter. Effectively, it has already registered an EPS of Rs 17 for the nine months ending Dec 2007. Last year, company has imported world’s fastest printing system - Kodak Versamark VT3000 which can print customized design from page to page. This machine has not only helped the company to execute all election commission related work in house but also enabled it to get more business from the emerging opportunities like printing documents (including bills) for telecom companies, electricity supply companies, retail groups etc. Recently it has entered into a strategic alliance with Eastman Kodak company to offer mass customization & personalization of customer communication practices in India and has been granted with the Kodak Gold Plus accreditation status. Although, offlate there has been news of company losing the Nasik, Aurangabad and other region from its belt still it’s a good bet as company has bid for new orders worth 2500 cr through its alliance with Eastman Kodak Co. It is expected to report total revenue of Rs 200 cr and profit of Rs 41.50 cr for FY08 i.e. EPS of Rs 21 on current equity and EPs of Rs 19 on diluted equity of Rs 21.40. For FY09 it has the potential to post Rs 25 EPS on diluted equity. Accumulate at declines.
Recently, JK lakshmi Cement (168.00) came out with decent set of nos. For the Dec qtr it sales improved by 25% to Rs 282 cr but NP grew by only 10% to Rs 61 cr due to higher interest and depreciation cost. But if we consider year to date figures upto Dec 2007, it has recorded 40% rise in sales to 816 cr and 75% increase in PAT to 203 cr. Interestingly, its nine month profit has already surpassed the entire FY07 profit of 178 cr by huge margin. To maintain its growth company is further expanding its capacity to 5 million from 3.4 million tonne by Oct 2008. On the other hand, it is betting high on RMC business as it has great potential along with high margins. Accordingly for FY08, it is now estimated to clock a turnover of Rs 1100 cr and net profit of Rs 250 cr which translates into EPS of Rs 44 on current equity and EPS of Rs 41 on diluted equity of Rs 61 cr. For future, it is contemplating to set up a Greenfield cement plant near Bhilai, Chhattisgarh with a capacity to produce 2.5 million tonne and hence looking to apply for limestone mining lease. A solid buy.
Post its Dec results share price of Kamanwala Housing (163.00) has tumbled down sharply as they don’t look so encouraging when compared to Dec’06 nos. Its revenue declined by massive 75% to Rs 16.50 cr whereas profit declined by only 20% to Rs 5 cr. But being in the real estate & construction sector and following the revenue model on sale of agreement basis, company is bound to post erratic and lumpy results on quarterly basis. Hence the picture changes for the combine nine months figures. Till now in this fiscal, it reported flat revenues to the tune of Rs 67.50 cr but profit shot up 80% to Rs 15 cr on the back of rising real estate prices. Copamy is mainly operating in Mumbai and has few good residential projects in Malad & Santacruz and huge commercial project in Bandra Kurla complex. It has several projects lined up for future in Andheri, Mahim, Goregaon etc and even in Hydrabad. Recently it also bought 10,000 sq mtr land in Turbhe for 15 cr. To sum up, company ia available fairly cheap at a market cap of less than Rs 100 cr. It can easily appreciate 50% from hereon.
Few days back Vakrangee Software (248.00) also came out with stunning nos for the Dec qtr. It recorded 100% growth in topline as well as bottomline to Rs 60 cr and Rs 13.50 cr respectively thereby posting an EPS of Rs 7 for the quarter. Effectively, it has already registered an EPS of Rs 17 for the nine months ending Dec 2007. Last year, company has imported world’s fastest printing system - Kodak Versamark VT3000 which can print customized design from page to page. This machine has not only helped the company to execute all election commission related work in house but also enabled it to get more business from the emerging opportunities like printing documents (including bills) for telecom companies, electricity supply companies, retail groups etc. Recently it has entered into a strategic alliance with Eastman Kodak company to offer mass customization & personalization of customer communication practices in India and has been granted with the Kodak Gold Plus accreditation status. Although, offlate there has been news of company losing the Nasik, Aurangabad and other region from its belt still it’s a good bet as company has bid for new orders worth 2500 cr through its alliance with Eastman Kodak Co. It is expected to report total revenue of Rs 200 cr and profit of Rs 41.50 cr for FY08 i.e. EPS of Rs 21 on current equity and EPs of Rs 19 on diluted equity of Rs 21.40. For FY09 it has the potential to post Rs 25 EPS on diluted equity. Accumulate at declines.
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