Small & Beautiful
Ironically in the current meltdown share price of Sujana Towers (50.00) has fallen more than 80% from its high of Rs 235 in Jan’08. Company is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Besides it also offer various services including engineering and consultation, turnkey installations, inspection and maintainance of towers etc. It has set up two large scale units at Hyderabad to emerge as India's largest galvanized steel tower manufacturing company. It has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA. In the light of fast growing demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries, it is in the midst of setting up another 100,000 TPA manufacturing facility at Chennai in order to cater to the domestic and export market. It also intends to set up / acquire subsidiaries in the Middle East/ South East Asia in the area of power transmission and telecom infrastructure services. Recently, it acquired 51% shareholding in Telesuprecon Ltd (Mauritius), undertaking Telecom infrastructure contracts in various cast / central African countries. For the trailing twelve months ending June 2008 it report total revenue of Rs 582 cr and profit of Rs 46 cr i.e. EPS of Rs 11 on current equity of Rs 20.70 cr. A screaming buy at current levels.
IMP Power (93.00) is engaged in manufacturing of entire range of power & distribution transformers, electrical & digital measuring instruments, testing equipments etc. For the latest June’08 qtr, it reported very flat nos with marginal fall in topline as well as bottomline. Accordingly for entire FY08 ending June’08, its sales grew by 30% to Rs 134 cr and PAT increased by 25% to Rs 9.40 cr posting an EPS of Rs 14 on equity of Rs 6.80 cr. To maintain its growth momentum company has undertaken 28 cr capex for expansion of its manufacturing facilities situated at Silvassa from existing 3,600 MVA to 6,000 MVA. It is also contemplating to increase it meter manufacturuing capacity by nearly 50% to 315,000 units. For FY09 ending June 2009, it is expected to report a topline of Rs 160 cr and bottomline of Rs 11.50 cr i.e. EPS of Rs 17 Rs on current equity of Rs 6.80 cr. Whereas the EPS works out to Rs 13 on fully diluted equity (post conversion of all warrants and CCRP) of around Rs 8.50 cr. After hitting a high of Rs 330 in Jan’08 share price has been reduced to 30% now and is available at attractive valuation. Keep accumulating at declines.
Part of B M Thapar group, Greaves Cotton (155.00) is enaged in production of diesel/petrol/LPG engines for power generation, agro equipment & atumotive apart from manufacturing gensets, agro equipment and construction equipment Besides, it is also engaged in marketing high technology systems for marine, aviation and electronic applications. Last year, to increase its presence in global market it acquired, Bukh Farymann Diesel GmbH (renamed as Greaves Farymann Diesel GmbH) which is engaged in the manufacture and marketing of single cylinder diesel engines and parts for Rs 25 cr. For FY08 it may clock a turnover of Rs 1400 cr and PAT of Rs 115 cr i.e. EPS of Rs 24 on current equity of Rs 48.80 cr. Of late Piaggio Group's Indian subsidiary signed a 8 year agreement with the company for purchase of mono-cylinder diesel engines for application on the three-wheeled vehicles manufactured by them. This implies that company will continue to be a single source supplier of such mono-cylinder diesel engines to Piaggio. Secondly few months ago company inaugurated its new manufacturing facility for compaction equipment at Gummidipoondi, Tamil Nadu. Recently it has also formed a 100% subsidiary to take up some new business in future. For FY09 it may clock a turnover of Rs 1500 cr and NP of Rs 100 cr i.e. EPS of Rs 20 on equity of Rs 48.85 cr. Only long term investors are advised to buy at declines.
Vivimed Labs (64.00) is a speciality chemical manufacturer catering to segments including oral care, sun care, skin care, hair care, natural extracts, preservatives, anti microbial, anti oxidants, anti-aging molecule etc. Infact it is world’s 2nd largest manufacturer of Triclosan - an antibacterial used for oral care and one of the top three companies for Avis – a chemical which improves UV absorbing ability of Sunscreen. Couple of months back it acquired 100% stake in M/s James Robinson,UK which is an international manufacturer and supplier of speciality chemicals used in hair dyes, pharmaceuticals and photographic films/prints to ophthalmic sunglasses. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. Considering its Q1FY09 nos and acquisition of UK company, company is estimated to report a consolidated sales of more than Rs 225 cr and net profit of Rs 17 cr. This leads to an EPS of Rs 18 on current equity of Rs 9.40 cr whereas diluted EPS works out to Rs 13 on diluted equity of Rs 12.65 cr. A strong buy.
IMP Power (93.00) is engaged in manufacturing of entire range of power & distribution transformers, electrical & digital measuring instruments, testing equipments etc. For the latest June’08 qtr, it reported very flat nos with marginal fall in topline as well as bottomline. Accordingly for entire FY08 ending June’08, its sales grew by 30% to Rs 134 cr and PAT increased by 25% to Rs 9.40 cr posting an EPS of Rs 14 on equity of Rs 6.80 cr. To maintain its growth momentum company has undertaken 28 cr capex for expansion of its manufacturing facilities situated at Silvassa from existing 3,600 MVA to 6,000 MVA. It is also contemplating to increase it meter manufacturuing capacity by nearly 50% to 315,000 units. For FY09 ending June 2009, it is expected to report a topline of Rs 160 cr and bottomline of Rs 11.50 cr i.e. EPS of Rs 17 Rs on current equity of Rs 6.80 cr. Whereas the EPS works out to Rs 13 on fully diluted equity (post conversion of all warrants and CCRP) of around Rs 8.50 cr. After hitting a high of Rs 330 in Jan’08 share price has been reduced to 30% now and is available at attractive valuation. Keep accumulating at declines.
Part of B M Thapar group, Greaves Cotton (155.00) is enaged in production of diesel/petrol/LPG engines for power generation, agro equipment & atumotive apart from manufacturing gensets, agro equipment and construction equipment Besides, it is also engaged in marketing high technology systems for marine, aviation and electronic applications. Last year, to increase its presence in global market it acquired, Bukh Farymann Diesel GmbH (renamed as Greaves Farymann Diesel GmbH) which is engaged in the manufacture and marketing of single cylinder diesel engines and parts for Rs 25 cr. For FY08 it may clock a turnover of Rs 1400 cr and PAT of Rs 115 cr i.e. EPS of Rs 24 on current equity of Rs 48.80 cr. Of late Piaggio Group's Indian subsidiary signed a 8 year agreement with the company for purchase of mono-cylinder diesel engines for application on the three-wheeled vehicles manufactured by them. This implies that company will continue to be a single source supplier of such mono-cylinder diesel engines to Piaggio. Secondly few months ago company inaugurated its new manufacturing facility for compaction equipment at Gummidipoondi, Tamil Nadu. Recently it has also formed a 100% subsidiary to take up some new business in future. For FY09 it may clock a turnover of Rs 1500 cr and NP of Rs 100 cr i.e. EPS of Rs 20 on equity of Rs 48.85 cr. Only long term investors are advised to buy at declines.
Vivimed Labs (64.00) is a speciality chemical manufacturer catering to segments including oral care, sun care, skin care, hair care, natural extracts, preservatives, anti microbial, anti oxidants, anti-aging molecule etc. Infact it is world’s 2nd largest manufacturer of Triclosan - an antibacterial used for oral care and one of the top three companies for Avis – a chemical which improves UV absorbing ability of Sunscreen. Couple of months back it acquired 100% stake in M/s James Robinson,UK which is an international manufacturer and supplier of speciality chemicals used in hair dyes, pharmaceuticals and photographic films/prints to ophthalmic sunglasses. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. Considering its Q1FY09 nos and acquisition of UK company, company is estimated to report a consolidated sales of more than Rs 225 cr and net profit of Rs 17 cr. This leads to an EPS of Rs 18 on current equity of Rs 9.40 cr whereas diluted EPS works out to Rs 13 on diluted equity of Rs 12.65 cr. A strong buy.
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