Small & Beautiful
JK Lakshmi Cement is a leading and reputed cement manufacturer in the northern and western markets with an installed capacity of 3.65 million tonne. Last year it commissioned two pet coke based captive power plants of 18 MW each to bring down it power cost. Importantly, company is also betting on lucrative RMC business and intends to add 5 more RMC plants in the current fiscal thereby taking its total number of RMC units to 14. At the same time it is looking at enhancement in the clinkerisation capacity and setting up of a split location grinding plant in Gujarat which will take its cement capacity to 4.75 million tonne by end of 2008. It has also initiated steps towards setting up of a new Greenfield composite cement plant at Durg in the State of Chattisgarh with annual capacity of 2.7 million tonne of cement. Meanwhile due to steep rise in input cost, company reported disappointing nos for the June qtr and is expected to end FY09 with sales of Rs 1250 cr and PAT of Rs 190 cr i.e. EPS of Rs 31 on equity of Rs 61.20 cr. At a current EV of less than Rs 1200 cr it seems all the negatives have already been discounted, hence it is comparatively trading cheaper than its peers. A good contrarian bet.
PBA Infrastructure (54.00) is engaged in execution of civil engineering projects and specializes in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects of various govt bodies. It is executing projects from Kashmir to Kanyakumari and has taken up new works like toll collection and quarrying to augment its income. For FY08 it posted an EPS of Rs 11 with 30% rise in sales as well as PAT to Rs 371 cr and 14.60 respectively. However for the June quarter it reported de-growth as revenue fell by 15% to Rs 84.50 cr and profit decreased by 30% to Rs 3.35 cr. But, company has been regularly bagging new orders and its current order book position is quite impressive at around Rs 700 cr. Fundamentally, company is having a huge debt of 170 cr due to which its interest cost is very high. Hence to fund its working capital requirement and reduce the high cost debt, company is contemplating to make pref allotment of 30 lac warrants to promoter and promoter group. Meanwhile for FY09 it is estimated to clock a turnover of Rs 425 cr and PAT of Rs 17 cr. This translates into EPS of Rs 13 on current equity of Rs 13.50 cr. Scrip can easily appreciate 50% within a year as and when the market sentiment improves.
Although small, Ram Informatics (13.50) is one such company which has been regularly bagging e-governance orders from last few months. It has completed various IT projects especially for different divisions of govt of Andhra Pradesh like computerized administration of sales tax, tourism, state road transport corporation, AP housing board etc. Besides company has designed, developed and maintains several govt portal like BangaloreOne(Karnataka), eSuvidha (UP), iSetu (Maharastra), Eseva, Sales Tax and Fire Service(AP) etc. For FY08 it reported 25% jump in revenue to Rs 12.75 cr whereas the NP increased by 40% to Rs 3 cr thereby posting an EPS of Rs 2.70. In the last few months it has bagged good long term orders from the various govt bodies of Andhra Pradesh as well as Karnataka. It has also got couple of orders from small co-operative banks for its own developed smart software products for automation in banking. Considering its Q1FY09 nos, company may report total revenue of more than Rs 20 cr and profit of Rs 3.25 cr i.e. EPS of Rs 2.9 on equity of 11.25 cr. Aggressive investors can buy at current EV of Rs 16 cr as it can give fast return once the sentiment turns positive. However, on the flip side it has invested whopping Rs 32 cr in its US subsidiary called Aravali Technologies Inc which has not yielded much returns.
For the June’08 qtr, Micro Technologies (218.00) total revenue as well as net profit shot up 65% to Rs 58 cr and Rs 17.50 respectively thereby posting an EPS of Rs 16 in this single quarter itself. For FY08 it had recorded an EPS of Rs 48 with NP of Rs 53 cr on total revenue of Rs 171 cr. Company is a global provider of security, safety and life-support solutions with its first of its kind and innovative products for security of home, office, shop, vehicle, laptop, mobile etc. It also has a business agreement with MTNL as well as Airtel to offer Lost Mobile Tracking system to their customers. Few weeks ago it introduced a GPS based product called Buddy tracking system to know the real time location of users. According to share market condition, company has again reset the FCCB conversion price downwards by 18% from Rs 304 to Rs 250. Although this indicates that bondholders as well as company are very much interested in conversion and not redemption, but this will lead to further equity dilution by 45 lakh shares. For FY09 it is expected to report a topline of Rs 250 cr and bottomline of Rs 70 cr i.e. EPS of Rs 54 on fully diluted equity of Rs 13 cr. Even at modest discounting by 8x times, share price has the potential to hit a new high of above Rs 400 in 12~15 months.
PBA Infrastructure (54.00) is engaged in execution of civil engineering projects and specializes in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects of various govt bodies. It is executing projects from Kashmir to Kanyakumari and has taken up new works like toll collection and quarrying to augment its income. For FY08 it posted an EPS of Rs 11 with 30% rise in sales as well as PAT to Rs 371 cr and 14.60 respectively. However for the June quarter it reported de-growth as revenue fell by 15% to Rs 84.50 cr and profit decreased by 30% to Rs 3.35 cr. But, company has been regularly bagging new orders and its current order book position is quite impressive at around Rs 700 cr. Fundamentally, company is having a huge debt of 170 cr due to which its interest cost is very high. Hence to fund its working capital requirement and reduce the high cost debt, company is contemplating to make pref allotment of 30 lac warrants to promoter and promoter group. Meanwhile for FY09 it is estimated to clock a turnover of Rs 425 cr and PAT of Rs 17 cr. This translates into EPS of Rs 13 on current equity of Rs 13.50 cr. Scrip can easily appreciate 50% within a year as and when the market sentiment improves.
Although small, Ram Informatics (13.50) is one such company which has been regularly bagging e-governance orders from last few months. It has completed various IT projects especially for different divisions of govt of Andhra Pradesh like computerized administration of sales tax, tourism, state road transport corporation, AP housing board etc. Besides company has designed, developed and maintains several govt portal like BangaloreOne(Karnataka), eSuvidha (UP), iSetu (Maharastra), Eseva, Sales Tax and Fire Service(AP) etc. For FY08 it reported 25% jump in revenue to Rs 12.75 cr whereas the NP increased by 40% to Rs 3 cr thereby posting an EPS of Rs 2.70. In the last few months it has bagged good long term orders from the various govt bodies of Andhra Pradesh as well as Karnataka. It has also got couple of orders from small co-operative banks for its own developed smart software products for automation in banking. Considering its Q1FY09 nos, company may report total revenue of more than Rs 20 cr and profit of Rs 3.25 cr i.e. EPS of Rs 2.9 on equity of 11.25 cr. Aggressive investors can buy at current EV of Rs 16 cr as it can give fast return once the sentiment turns positive. However, on the flip side it has invested whopping Rs 32 cr in its US subsidiary called Aravali Technologies Inc which has not yielded much returns.
For the June’08 qtr, Micro Technologies (218.00) total revenue as well as net profit shot up 65% to Rs 58 cr and Rs 17.50 respectively thereby posting an EPS of Rs 16 in this single quarter itself. For FY08 it had recorded an EPS of Rs 48 with NP of Rs 53 cr on total revenue of Rs 171 cr. Company is a global provider of security, safety and life-support solutions with its first of its kind and innovative products for security of home, office, shop, vehicle, laptop, mobile etc. It also has a business agreement with MTNL as well as Airtel to offer Lost Mobile Tracking system to their customers. Few weeks ago it introduced a GPS based product called Buddy tracking system to know the real time location of users. According to share market condition, company has again reset the FCCB conversion price downwards by 18% from Rs 304 to Rs 250. Although this indicates that bondholders as well as company are very much interested in conversion and not redemption, but this will lead to further equity dilution by 45 lakh shares. For FY09 it is expected to report a topline of Rs 250 cr and bottomline of Rs 70 cr i.e. EPS of Rs 54 on fully diluted equity of Rs 13 cr. Even at modest discounting by 8x times, share price has the potential to hit a new high of above Rs 400 in 12~15 months.
No comments:
Post a Comment