Small & Beautiful
Balaji Amines (116.00) is among the few handful manufacturers across the world producing methylamines, ethylamines and their derivatives, as amine manufacturing technology is a closely guarded process. Ironically company is using indigenously developed technology i.e. without any technical foreign collaboration. It also produces specialty chemicals which are import substitutes like Morpholine,hydroxylamine, N-Methyl Pyrrolidone etc and few natural products (herbal extracts) such as solanesol, calcium sennosoid, coleus forskohlii, camptothesin etc. Of late company has seen a good rise in its product prices and hence despite rise in crude oil price it reported stunning nos for the June quarter. Sales shot up by 70% to Rs 73 cr and PBT zoomed up 120% to Rs 7.40 cr. It reported an OPM of 13% which is quite encouraging. However, due to tax provisioning its PAT stood up 70% to Rs 5.10 cr posting an EPS of Rs 8 for the single quarter. Accordingly for the entire FY09 it may clock sales of Rs 260 cr and NP of Rs 15 cr i.e. EPS of Rs 23 on current tiny equity of Rs 6.50 cr.
For the latest June’08 quarter, Manugraph (90.00) has reported 40% growth in sales to Rs 135 cr and 30% increase in PAT to Rs 16.70 cr on a standalone basis. Last fiscal it worked at almost 100% capacity utilization and on the back of robust demand from national as well as international market, company is implementing a capex plan to enhance its installed capacity from 830 print units to 960 print units. Recently it participated in DRUPA 08 exhibition in Germany, where it got tremendous response. However in this fiscal as well, company won’t be able to turn around its US subsidiary Manugraph DGM, due to slowdown in US and as the effect of synergies will materialize in next fiscal. Meanwhile company’s agreement of business co-operation for marketing with MAN Germany ended mutually in July’08. But at the same time its selling agreement with MAN Ferrostaal continues. Considering its good order book position, company may clock a turnover of Rs 475 cr and net profit of Rs 55 cr i.e. EPS of Rs 18 on equity of Rs 6 cr having face value as Rs 2/- per share. Scrip has been consolidating at this level for quite some time now. Being India’s largest manufacturer of web offset and sheet fed offset presses this company deserves much better valuation.
Pioneer Distilleries (45.00) is a distillery manufacturing company engaged primarily in the manufacture of extra natural alcohol (ENA), rectified spirit (RS), denatured spirit (DS), and absolute alcohol (Ethanol). The fine grade of ENA manufactured by it is mostly used as raw material for many brands of renowned liquor manufacturing companies. Due to buoyant economic condition, company is planning to double the installed capacity to 200 KLPD for which statutory permission from the excise has been received. It is also contemplating to increase the capacity of ethanol plant from 30,000 to 130,000 ltrs per day. Besides, its 5 MW bio-gas based power project is expected to begin commercial production from October, 2008 which will also fetch carbon credits. Notably Tata Power has signed a 10 yr purchase agreement to purchase the entire power generated from this unit. Incidentally, company also owns around 300 Acres of land which is being used for agricultural purpose where treated effluent is used for cultivation. Company announced satisfactory result for the June qtr and may clock a revenue of Rs 75 cr and PAT of Rs 12 cr for FY09 i.e. EPS of Rs 10 on diluted equity of Rs 12.50 cr. Moreover at CMP the divd yeild works to more than 4%. A good bet in current sentiment. Gujarat Apollo Industries (175.00) is into manufacturing and after sales service of equipments for road building industry like asphat plants, pavers finishers, wet mix plants, bitumen sprayers, compaction equipment, road making machineries, crushing & screeing machines etc. It controls more than 60% of the market in the product segments in which it operates, with over 1,400 customers and an equipment population of around 3,500 units. To consolidate its position, it has been making investments in its associate companies and has already made Apollo Earthmovers and Apollo Industrial Products Ltd as its subsidiaries. In current year, another group company called Apollo Construction Equipments Ltd is expected to come under its fold. For the June’08 quarter, it registered an NP of Rs 7.15 cr on consolidated sales of Rs 61 cr. Accordingly for full year, it may post an sales of Rs 280 cr and PAT of Rs 33 cr which works out to an EPS of Rs 30 on diluted equity of Rs 11.05 cr. Share price has the potential to move up to Rs 240 in short term once the sentiment improves. Accumulate at every decline
For the latest June’08 quarter, Manugraph (90.00) has reported 40% growth in sales to Rs 135 cr and 30% increase in PAT to Rs 16.70 cr on a standalone basis. Last fiscal it worked at almost 100% capacity utilization and on the back of robust demand from national as well as international market, company is implementing a capex plan to enhance its installed capacity from 830 print units to 960 print units. Recently it participated in DRUPA 08 exhibition in Germany, where it got tremendous response. However in this fiscal as well, company won’t be able to turn around its US subsidiary Manugraph DGM, due to slowdown in US and as the effect of synergies will materialize in next fiscal. Meanwhile company’s agreement of business co-operation for marketing with MAN Germany ended mutually in July’08. But at the same time its selling agreement with MAN Ferrostaal continues. Considering its good order book position, company may clock a turnover of Rs 475 cr and net profit of Rs 55 cr i.e. EPS of Rs 18 on equity of Rs 6 cr having face value as Rs 2/- per share. Scrip has been consolidating at this level for quite some time now. Being India’s largest manufacturer of web offset and sheet fed offset presses this company deserves much better valuation.
Pioneer Distilleries (45.00) is a distillery manufacturing company engaged primarily in the manufacture of extra natural alcohol (ENA), rectified spirit (RS), denatured spirit (DS), and absolute alcohol (Ethanol). The fine grade of ENA manufactured by it is mostly used as raw material for many brands of renowned liquor manufacturing companies. Due to buoyant economic condition, company is planning to double the installed capacity to 200 KLPD for which statutory permission from the excise has been received. It is also contemplating to increase the capacity of ethanol plant from 30,000 to 130,000 ltrs per day. Besides, its 5 MW bio-gas based power project is expected to begin commercial production from October, 2008 which will also fetch carbon credits. Notably Tata Power has signed a 10 yr purchase agreement to purchase the entire power generated from this unit. Incidentally, company also owns around 300 Acres of land which is being used for agricultural purpose where treated effluent is used for cultivation. Company announced satisfactory result for the June qtr and may clock a revenue of Rs 75 cr and PAT of Rs 12 cr for FY09 i.e. EPS of Rs 10 on diluted equity of Rs 12.50 cr. Moreover at CMP the divd yeild works to more than 4%. A good bet in current sentiment. Gujarat Apollo Industries (175.00) is into manufacturing and after sales service of equipments for road building industry like asphat plants, pavers finishers, wet mix plants, bitumen sprayers, compaction equipment, road making machineries, crushing & screeing machines etc. It controls more than 60% of the market in the product segments in which it operates, with over 1,400 customers and an equipment population of around 3,500 units. To consolidate its position, it has been making investments in its associate companies and has already made Apollo Earthmovers and Apollo Industrial Products Ltd as its subsidiaries. In current year, another group company called Apollo Construction Equipments Ltd is expected to come under its fold. For the June’08 quarter, it registered an NP of Rs 7.15 cr on consolidated sales of Rs 61 cr. Accordingly for full year, it may post an sales of Rs 280 cr and PAT of Rs 33 cr which works out to an EPS of Rs 30 on diluted equity of Rs 11.05 cr. Share price has the potential to move up to Rs 240 in short term once the sentiment improves. Accumulate at every decline
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