Small & Beautiful (Guj)
Jupiter Bioscience (110.00) is poised to become a global peptide solutions group having a broad canvas of peptide chemistry products, peptide reagents, coupling reagents, protective agents and supplier of key ingredients used in peptide based pharmaceuticals. It is operating in a very niche segment and is among the few companies in the world to have competency in synthesis of peptides. It is also setting up a 5500 sq ft manufacturing facility in Maryland, US to cater the USA, Canada and European markets. Earlier company entered into a 10-year product purchase agreement with Ranbaxy on peptide pharmaceutical for gloabal market and as per contract allotted 31.77 lakh warrants @ Rs 147. It has also finalized to acquire a manufacturing facility of Merck Life Sciences, Switzerland and has even signed a long term business contract with them. Recently it has entered into licensing agreement with California based GI Logics Inc for development/sales for the use of Diamox for diagnostic & eradication of H. pylori bacterium. Last fiscal it raised 100 cr thru QIP route @ Rs 153 per share. Further it cancelled the 27.50 lakh equity shares allotted to promoters and instead issued 40 lakh warrants @ Rs 182 to strategic investors. For FY08 it recorded 25% growth in sales to Rs 130 cr but net profit zoomed up 65% to Rs 30.70 cr posting an EPS of Rs 20 on equity of Rs 15.40 cr. For FY09 on a standalone basis, it can report sales of Rs 175 cr and NP of Rs 40 i.e EPS of Rs 18 on diluted equity of Rs 22.50 cr. One of the safest bet at CMP.
Lloyd Electric (85.00) posted satisfactory numbers for the March qtr and ended FY08 with sales of Rs 668 cr (up 40%) and net profit of Rs 60 cr (increase of 40%) i.e. EPS of Rs 19 on equity of Rs 31 cr. Being India’s largest manufacturer of evaporator and condenser (E&C) coils with around 60% market share, company has got itself forward integrated into lucrative business of contract manufacturing of window / split air conditioners for various MNCs in India. It is also into manufacturing of roof mounted packaged unit i.e. packaged AC for railway coaches on turnkey basis and even has an agreement with Australian company for metro rail AC units. Further company is contemplating to diversify into production of roll bond and frost free coils for refrigerators and has tied up with a Korean company. But most importantly, couple of months ago it acquired 100% stake Luvata Czech s.r.o. in Prague, Czech Republic which is also into manufacturing of heat exchangers / coils and has good presence in European market. On a consolidated basis it is expected to clock a turnover of Rs 850 cr and PAT of Rs 65 cr i.e. EPS of Rs 21 on current equity. Company has allotted 50 lakh warrants @ Rs 225 which may not get converted considering the CMP. A screaming buy at current levels.
GM Breweries (70.00) is engaged in the manufacture of alcholic liquor having the facility to blend and bottle both Indian made foreign liquor and country liquor, though it concentrates mainly on country liquor. It is the single largest manufacturer of country liquor in the state of Maharashtra and paid nearly Rs 315 cr towards excise duty and sales tax for FY08 to Maharashtra govt. With its popular brands like GM Doctor, Tango and Punch company enjoys virtual monopoly in the districts of Mumbai, Navi Mumbai and Thane. Due to the installation of additional bottling lines recently, company now has the capacity to process 12.84 crores bulk litres of country liquor per annum. However, only 43% of capacity has been utilized for FY08 thereby leaving tremendous potential to utilise the balance capacity by penetrating into interior districts of Maharashtra. Financially company is doing extremely well and hasn’t even diluted its equity since IPO in 1994 and has uninterrupted record of dividend payment from the day of its listing. For FY08 it posted marginal growth in topline to Rs 186 cr but NP improved by 25% to Rs 14.75 cr due to lower raw material cost. This translates into EPS of Rs 16 on equity of Rs 9.40 cr on which it declared 25% dividend. For FY09 it is expected to maintain the same bottomline with EPS of Rs 16. Scrip can easily shoot upto 110 Rs in 6~9 months. A solid and safe bet.
Blue Bird (28.00) is one of the leading manufacturers of paper based notebook products and office stationery. Although notebook forms the core business, company has also ventured into publishing academic textbooks and self study books for children apart from general publications in subjects such as ayurveda and biographies. It also offers end to end solutions for commercial printing. The marketing and sales team at company supports the distribution network of over 600 dealers and distributors spread across 18 cities in India, as also overseas representatives in many countries. In order to cater the central and south India market efficiently, company has put up two new plants at Indore and Bangalore apart from having its main plant in Pune. Financially, company is weak in managing receivables as it has very high debtors equivalent to four months of sales. This has led to huge debt and recently to fund its working capital requirement company has privately placed Rs 100 Crores Redeemable NCD with LIC Mutual fund for one year. Hence interest cost is the biggest drag on company’s financial. For FY08 it reported flat top-line with Rs 459 cr whereas NP actually declined by 15% to Rs 22.60 cr. Ironically it paid Rs 34 as interest cost for the entire year. Hence it reported an EPS of more than Rs 6 on equity of Rs 35 cr. On a conservative basis, it is expected to maintain the bottom-line to Rs 20 cr for FY09. Scrip can easily appreciate 50% within a year
Lloyd Electric (85.00) posted satisfactory numbers for the March qtr and ended FY08 with sales of Rs 668 cr (up 40%) and net profit of Rs 60 cr (increase of 40%) i.e. EPS of Rs 19 on equity of Rs 31 cr. Being India’s largest manufacturer of evaporator and condenser (E&C) coils with around 60% market share, company has got itself forward integrated into lucrative business of contract manufacturing of window / split air conditioners for various MNCs in India. It is also into manufacturing of roof mounted packaged unit i.e. packaged AC for railway coaches on turnkey basis and even has an agreement with Australian company for metro rail AC units. Further company is contemplating to diversify into production of roll bond and frost free coils for refrigerators and has tied up with a Korean company. But most importantly, couple of months ago it acquired 100% stake Luvata Czech s.r.o. in Prague, Czech Republic which is also into manufacturing of heat exchangers / coils and has good presence in European market. On a consolidated basis it is expected to clock a turnover of Rs 850 cr and PAT of Rs 65 cr i.e. EPS of Rs 21 on current equity. Company has allotted 50 lakh warrants @ Rs 225 which may not get converted considering the CMP. A screaming buy at current levels.
GM Breweries (70.00) is engaged in the manufacture of alcholic liquor having the facility to blend and bottle both Indian made foreign liquor and country liquor, though it concentrates mainly on country liquor. It is the single largest manufacturer of country liquor in the state of Maharashtra and paid nearly Rs 315 cr towards excise duty and sales tax for FY08 to Maharashtra govt. With its popular brands like GM Doctor, Tango and Punch company enjoys virtual monopoly in the districts of Mumbai, Navi Mumbai and Thane. Due to the installation of additional bottling lines recently, company now has the capacity to process 12.84 crores bulk litres of country liquor per annum. However, only 43% of capacity has been utilized for FY08 thereby leaving tremendous potential to utilise the balance capacity by penetrating into interior districts of Maharashtra. Financially company is doing extremely well and hasn’t even diluted its equity since IPO in 1994 and has uninterrupted record of dividend payment from the day of its listing. For FY08 it posted marginal growth in topline to Rs 186 cr but NP improved by 25% to Rs 14.75 cr due to lower raw material cost. This translates into EPS of Rs 16 on equity of Rs 9.40 cr on which it declared 25% dividend. For FY09 it is expected to maintain the same bottomline with EPS of Rs 16. Scrip can easily shoot upto 110 Rs in 6~9 months. A solid and safe bet.
Blue Bird (28.00) is one of the leading manufacturers of paper based notebook products and office stationery. Although notebook forms the core business, company has also ventured into publishing academic textbooks and self study books for children apart from general publications in subjects such as ayurveda and biographies. It also offers end to end solutions for commercial printing. The marketing and sales team at company supports the distribution network of over 600 dealers and distributors spread across 18 cities in India, as also overseas representatives in many countries. In order to cater the central and south India market efficiently, company has put up two new plants at Indore and Bangalore apart from having its main plant in Pune. Financially, company is weak in managing receivables as it has very high debtors equivalent to four months of sales. This has led to huge debt and recently to fund its working capital requirement company has privately placed Rs 100 Crores Redeemable NCD with LIC Mutual fund for one year. Hence interest cost is the biggest drag on company’s financial. For FY08 it reported flat top-line with Rs 459 cr whereas NP actually declined by 15% to Rs 22.60 cr. Ironically it paid Rs 34 as interest cost for the entire year. Hence it reported an EPS of more than Rs 6 on equity of Rs 35 cr. On a conservative basis, it is expected to maintain the bottom-line to Rs 20 cr for FY09. Scrip can easily appreciate 50% within a year
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