Small & Beautiful
Few retail investors are concerned that Anjani Portland (28.00) has come out with poor performance for the March quarter as its NP declined by 35% to Rs 2.60 cr. But actually company has announced robust nos as its cement sales jumped up 60% to Rs 34 cr and PBT doubled to Rs 6 cr from Rs 3 cr last year. But as company made the full year tax provisioning in the single last quarter it reported lower net profit. Similarly for the entire FY08, its turnover grew by 55% to Rs 103 cr and profit before tax shot up 85% to Rs 23 cr. After tax provisioning of Rs 6.75 cr (i.e. 29% of PBT), its net profit increased by 30% to Rs 16.30 cr posting an EPS of Rs 9 on equity of Rs 18.40 cr. It declared 15% dividend which gives an yield of more than 5% at CMP. The higher tax cost may be due to company losing the status of mini cement plant and hence also the exemption and tax benefit enjoyed by that status. Notably, company has a captive limestone mine, captive power generation unit and state-of-the-art technology from Nihon of Japan. With rising input cost and anticipated fall in cement prices, company is estimated to clock a turnover of Rs 100 cr and profit of Rs 12 cr i.e. EPS of Rs 7 on conservative basis for FY09. Accumulate only at sharp declines
For the latest March’08 quarter Roto Pumps (48.00) registered 30% growth in sales to Rs 14 cr whereas its net profit zoomed up 80% to Rs 1 cr. For the twelve months ending March 08 its turnover grew by 25% to Rs 42 cr and PAT jumped up 50% to Rs 3 cr on back of better price realization. Notably, company recorded a remarkable improvement in OPM to 15% in FY08 from 12% last fiscal. It even declared high dividend of 20% for FY08. Company is a reputed manufacturer of progressive cavity pumps and twin screw pumps which have very wide application in agriculture, domestic and industrial sector. Besides India, it has warehouse cum marketing office in Australia and U.K. and also good network of distributors spread across the globe. Company is in the midst of expanding its manufacturing facility and may register a topline of Rs 50 cr and bottom-line of Rs 3.75 cr for FY09. This translates into EPS of Rs 12 on a small equity of 3.09 cr. At the current enterprise value of Rs 20 cr, scrip is trading fairly cheap. Scrip can double in medium term.
Recently, Hind Rectifiers (150.00) has announced encouraging set of nos for the March qtr. Topline as well as bottomline increased by 30% to Rs 34 cr and Rs 4.10 cr respectively. For the full year it recorded modest growth of 15% in sales to Rs 102 cr and 10% increase in profit to Rs 12.30 cr. This translates into EPS of Rs 16 on a very tiny equity of Rs 1.51 cr with a face value of Rs 2/- per share. Incidentally, being in the golden jubilee year of operation, company has declared 1:1 bonus. It announced 100% dividend, as last year. But finally, the new plant of company at Uttarakhand has started commercial production from June 2008. This plant is expected to contribute around Rs 10~15 cr for FY09. Notably, company derives more than 50% of its revenues from railways and 20% from power industry. Of late, 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. Accordingly it may end FY09 with sales of Rs 125 cr and PAT of around Rs 15 cr i.e. EPS of Rs 20 on current equity. As share price has shot up on bonus news, investors are advised to accumulate at sharp declines around Rs 120 levels only. NCL Industries (38.00), the flagship company of the NCL group is engaged in four business segments namely cement, cement bonded particle boards, prefab and hydel power. Presently cement contributes 75% of revenue board and prefabs contribute 20% and balance comes from hydel power. On the back of agressive expansion company has doubled its cement manufacturing capacity to 630,000 TPA and is further looking to triple it to 20 million TPA within couple of years. It has also set up a new particle board manufacturing facility in Himachal thereby taking the total capacity to 80,000 TPA. On the other hand, its prefabricated structures division is witnessing good demand and has bagged huge order worth 50 cr couple of months back. Fundamentally, it recorded 30% growth in sales to Rs 193 cr whereas PBT grew by 45% to Rs 43 cr. Due to high tax provisioning its NP improved marginally by 7% to Rs 29.50 cr posating an EPS of Rs 9 on current equity of Rs 32.50 cr. With rising input cost and interfearance of govt on cement prices, company is estimated to report a topline of Rs 275 cr and maintain its profit of around Rs 30 i.e. EPS of Rs 9 on fully diluted equity of Rs 34.90 cr.
For the latest March’08 quarter Roto Pumps (48.00) registered 30% growth in sales to Rs 14 cr whereas its net profit zoomed up 80% to Rs 1 cr. For the twelve months ending March 08 its turnover grew by 25% to Rs 42 cr and PAT jumped up 50% to Rs 3 cr on back of better price realization. Notably, company recorded a remarkable improvement in OPM to 15% in FY08 from 12% last fiscal. It even declared high dividend of 20% for FY08. Company is a reputed manufacturer of progressive cavity pumps and twin screw pumps which have very wide application in agriculture, domestic and industrial sector. Besides India, it has warehouse cum marketing office in Australia and U.K. and also good network of distributors spread across the globe. Company is in the midst of expanding its manufacturing facility and may register a topline of Rs 50 cr and bottom-line of Rs 3.75 cr for FY09. This translates into EPS of Rs 12 on a small equity of 3.09 cr. At the current enterprise value of Rs 20 cr, scrip is trading fairly cheap. Scrip can double in medium term.
Recently, Hind Rectifiers (150.00) has announced encouraging set of nos for the March qtr. Topline as well as bottomline increased by 30% to Rs 34 cr and Rs 4.10 cr respectively. For the full year it recorded modest growth of 15% in sales to Rs 102 cr and 10% increase in profit to Rs 12.30 cr. This translates into EPS of Rs 16 on a very tiny equity of Rs 1.51 cr with a face value of Rs 2/- per share. Incidentally, being in the golden jubilee year of operation, company has declared 1:1 bonus. It announced 100% dividend, as last year. But finally, the new plant of company at Uttarakhand has started commercial production from June 2008. This plant is expected to contribute around Rs 10~15 cr for FY09. Notably, company derives more than 50% of its revenues from railways and 20% from power industry. Of late, 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. Accordingly it may end FY09 with sales of Rs 125 cr and PAT of around Rs 15 cr i.e. EPS of Rs 20 on current equity. As share price has shot up on bonus news, investors are advised to accumulate at sharp declines around Rs 120 levels only. NCL Industries (38.00), the flagship company of the NCL group is engaged in four business segments namely cement, cement bonded particle boards, prefab and hydel power. Presently cement contributes 75% of revenue board and prefabs contribute 20% and balance comes from hydel power. On the back of agressive expansion company has doubled its cement manufacturing capacity to 630,000 TPA and is further looking to triple it to 20 million TPA within couple of years. It has also set up a new particle board manufacturing facility in Himachal thereby taking the total capacity to 80,000 TPA. On the other hand, its prefabricated structures division is witnessing good demand and has bagged huge order worth 50 cr couple of months back. Fundamentally, it recorded 30% growth in sales to Rs 193 cr whereas PBT grew by 45% to Rs 43 cr. Due to high tax provisioning its NP improved marginally by 7% to Rs 29.50 cr posating an EPS of Rs 9 on current equity of Rs 32.50 cr. With rising input cost and interfearance of govt on cement prices, company is estimated to report a topline of Rs 275 cr and maintain its profit of around Rs 30 i.e. EPS of Rs 9 on fully diluted equity of Rs 34.90 cr.
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