STOCK WATCH
Hind Rectifiers (140.00) is one of the leading manufacturers of locomotive transformers, rectifiers, inverters, and power electronics like diodes and thyristors (types of semiconductor devices) etc which are basically used in converting the current from AC to DC and vice versa. Incidentally, it derives more than 50% of its revenues from railways and 20% from power industry. For Dec qtr, sales improved by 15% to Rs 23 cr and NP grew by 10% to Rs 2.80 cr. Offlate, company has set up two new units in tax free zone of Uttranchal, but in order to get the Cenvat paid on raw material it is still operating from its old plant in Mumbai and Nagpur. However the new orders booked by the company will be manufactured at Uttranchal plant only. Moreover, recently company has signed a technical collaboration agreement with M/s. Infineon Technologies AG, Germany for manufacturing of IGBT based primeSTACK which will complement its existing products. It may end FY08 with sales of Rs 95 cr and PAT of around Rs 11 cr i.e. EPS of Rs 15 on a very tiny equity of Rs 1.50 cr having a face value of Rs 2/- per share. Importantly, company is estimated to report an EPS of more than Rs 20 for FY09 and at a modest discounting by 12x times share price can double in 12~15 months.
Shanti Gears (65.00) is engaged in the manufacture of gears, gearboxes, geared motors and gear assemblies both standard and custom-made. Its product portfolio includes a range of worm gear boxes, helical & bevel gear box, geared motor, custom built gear box, mill gear box, ppen gearing, CNC machine tools and products for the textile industry. It also manufactures high precision gears for marine and aviation industries. It has recorded 25% growth in sales to Rs 176 cr and 30% rise in net profit to Rs 32 cr for nine months ending Dec 2007. Notably, company makes gearboxes of 250 KV for windmills and is looking for technical collaboration to manufacture higher capacity gears for windmills. On the back of strong industrial and economic growth company is sitting on a strong order book of more than Rs 100 cr currently. For FY08 it can clock a turnover of Rs 250 cr and profit of Rs 45 cr which leads to an EPS of Rs 5.25 on fully diluted equity of Rs 8.60 cr with a face value of Rs 1/- per share. Moreover for FY09 it has the potential to register an EPS of Rs 6.50 which means scrip is trading fairly cheap at P/E ratio of 10x times. Besides, compay is having around 18 acres of surplus land in prime location of Coimbatore which can fetch handsome value once sold.
Hitachi Home & Life Solutions (127.00), a 68% subsidiry of Hitachi-Japan is amongst the top airconditioning companies in India with an installed capacity of 250,000 units per year. It maufactures high technological home and commercial air conditioners like window AC, split AC, concealed splits, ductables, chillers and specific telecom cooling solutions. Its plant at Kadi, Gujarat is among the seven Hitachi room air conditioner facilities worldwide. Couple of years back company also introduced 3-Door refrigerators and big capacity washing machines which are basically imported from Hitachi factory in Thailand. Its topline grew by 45% to Rs 83 cr but PAT shot up 240% to Rs 5.40 cr for the latest Dec’07 qtr. Importantly, due to strong brand equity company has managed to retain the high quality position as well as price realisation in spite of stiff competition. Accordingly it is expected to report total revenue of Rs 425 cr and PAT of around Rs 37 cr for FY08. This works out to an EPS of Rs 16 on equity Rs 23 cr. Accumulate at every decline.
L.G.Balakrishnan & Bros (22.00) is enaged into auto transmission & metal forming business thereby manufacturing products like chains for both automotive and industrial segment, sprockets, tensioners and belts on one hand and fine blanking, forging (cold, hot and warm), machined components, wire drawing on the other hand. In order to cater to the requirements of major OEMs customers, last year company has put up a new manufacturing plant in tax free zone of Pantnagar, Uttarakhand. Notably, company meets 100% of transmission requirements of Bajaj Auto and TVS, and nearly 80% of Hero Honda's. For the nine months ending Dec’07 it registered 12% growth in sales to Rs 394 cr but profit grew marginally to Rs 10.80 cr. Offlate, it has also set up a Greenfield forging plant near its existing plant at Annur. Interestingly, it is demerging its forging division into LGB Forge Ltd and will be allotting one share of it for every one share held in the company. For entire FY08 it may clock a turnover of Rs 525 and NP of Rs13.50 cr i.e. EPS of Rs 1.70 on equity of Rs 7.85 cr having face value of Rs 1/- per share. However, the continuos pressure for price reduction by OEMs and severe competition in the after market coupled with volatile input cost are causes of conern. But only at sharp declines.
Shanti Gears (65.00) is engaged in the manufacture of gears, gearboxes, geared motors and gear assemblies both standard and custom-made. Its product portfolio includes a range of worm gear boxes, helical & bevel gear box, geared motor, custom built gear box, mill gear box, ppen gearing, CNC machine tools and products for the textile industry. It also manufactures high precision gears for marine and aviation industries. It has recorded 25% growth in sales to Rs 176 cr and 30% rise in net profit to Rs 32 cr for nine months ending Dec 2007. Notably, company makes gearboxes of 250 KV for windmills and is looking for technical collaboration to manufacture higher capacity gears for windmills. On the back of strong industrial and economic growth company is sitting on a strong order book of more than Rs 100 cr currently. For FY08 it can clock a turnover of Rs 250 cr and profit of Rs 45 cr which leads to an EPS of Rs 5.25 on fully diluted equity of Rs 8.60 cr with a face value of Rs 1/- per share. Moreover for FY09 it has the potential to register an EPS of Rs 6.50 which means scrip is trading fairly cheap at P/E ratio of 10x times. Besides, compay is having around 18 acres of surplus land in prime location of Coimbatore which can fetch handsome value once sold.
Hitachi Home & Life Solutions (127.00), a 68% subsidiry of Hitachi-Japan is amongst the top airconditioning companies in India with an installed capacity of 250,000 units per year. It maufactures high technological home and commercial air conditioners like window AC, split AC, concealed splits, ductables, chillers and specific telecom cooling solutions. Its plant at Kadi, Gujarat is among the seven Hitachi room air conditioner facilities worldwide. Couple of years back company also introduced 3-Door refrigerators and big capacity washing machines which are basically imported from Hitachi factory in Thailand. Its topline grew by 45% to Rs 83 cr but PAT shot up 240% to Rs 5.40 cr for the latest Dec’07 qtr. Importantly, due to strong brand equity company has managed to retain the high quality position as well as price realisation in spite of stiff competition. Accordingly it is expected to report total revenue of Rs 425 cr and PAT of around Rs 37 cr for FY08. This works out to an EPS of Rs 16 on equity Rs 23 cr. Accumulate at every decline.
L.G.Balakrishnan & Bros (22.00) is enaged into auto transmission & metal forming business thereby manufacturing products like chains for both automotive and industrial segment, sprockets, tensioners and belts on one hand and fine blanking, forging (cold, hot and warm), machined components, wire drawing on the other hand. In order to cater to the requirements of major OEMs customers, last year company has put up a new manufacturing plant in tax free zone of Pantnagar, Uttarakhand. Notably, company meets 100% of transmission requirements of Bajaj Auto and TVS, and nearly 80% of Hero Honda's. For the nine months ending Dec’07 it registered 12% growth in sales to Rs 394 cr but profit grew marginally to Rs 10.80 cr. Offlate, it has also set up a Greenfield forging plant near its existing plant at Annur. Interestingly, it is demerging its forging division into LGB Forge Ltd and will be allotting one share of it for every one share held in the company. For entire FY08 it may clock a turnover of Rs 525 and NP of Rs13.50 cr i.e. EPS of Rs 1.70 on equity of Rs 7.85 cr having face value of Rs 1/- per share. However, the continuos pressure for price reduction by OEMs and severe competition in the after market coupled with volatile input cost are causes of conern. But only at sharp declines.
No comments:
Post a Comment