Small & Beautiful
Currently, Godawari Power (128.00) is the 4th largest manufacturer of coal based sponge iron and also one of the leading manufacturers of mild steel in India. It completed its Phase-II expansion in Sept 2007 and boasts of having an installed capacity of 495,000 TPA for sponge iron, 400,000 TPA for steel billets, 120,000 TPA for HB wire rod alongwith 53 MW of captive power plant. Importantly, company has acquired mining license for iron ore and coal in Chhattisgarh. It has also made investments in two JV companies - Chhattisgarh Captive Coal Mining Ltd and Raipur Infrastructure Company Ltd. for development of coal mines and setting up railway sliding for captive use. Recently company has decided to venture into cement production along with executing backward integration plan which includes setting up of 0.6 mtpa iron ore Pelletization plant, 0.1 mtpa iron ore Beneficiation plant, 1.2mtpa iron ore Crushing plant etc. For the June’08 qtr its sales increased by 90% to Rs 320 cr and PAT jumped up 80% to Rs 38 cr posting an EPS of Rs 13.50 for the quarter. Last month one of its subsidiary has signed a MOU with the govt of Chhattisgarh for setting-up of 1000 MW thermal power project. For FY09 company is estimated to clock a turnover of Rs 1350 cr and PAT of Rs 150 cr i.e. EPS of Rs 54 on current equity. A strong buy
Post the amalgamation of Rain Calcining with itself, Rain Commodities (190.00) has been posting encouraging nos on a consolidated basis. Currently, it is one of the largest producers of Calcined petroleum coke with 7 plants in USA and one plant in India and having total installed capacity of 2.40 million tonne of CPC. Besides, it also produces cement at its 1.60 million tonne cement plant in South India and sells it under the “PRIYA” brand. For the quarter ending June’08 it posted a net profit of Rs 94 cr on net sales of Rs 1081 cr. This is despite the fact company provided Rs 42 cr on restatement of foreign currency loan as per June exchange rate. Remarkably, its OPM stood at more than 25% and with CPC price expected to remain robust its margins may increase in H2FY08. In order to maintain its growth momentum in future and cash on the robust CPC demand, company is setting up two additional facilities for another 0.6 million tonne of calcined coke which will be operational by 2010. Meanwhile for CYFY08, it may report consolidated sales of Rs 4250 cr and NP of Rs 350 cr i.e. EPS of Rs 46 on fully diluted equity of approx Rs 76 cr. Keep accumulating at sharp declines.
From a high of more than Rs 1000 early this year, share price of KLG Systel (225.00) has been battered down badly and hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of Rs 285 cr. For FY09 it is expected to clock a turnover of Rs 350 cr and profit of Rs 60 cr i.e. EPS of Rs 41 on estimated diluted equity of around Rs 14.50 cr.
Aegis logistic (110.00) owns and operates one of India’s largest private sector liquid terminal located on a 20-acre plot at Trombay having storage capacity of 165,000 KL. With two other terminals it boasts of having a total capacity of around 290,000 KL. Considering the robust future outlook, it is setting up a third terminal in Trombay with a capacity of nearly 55,000 KL by FY10. On the other hand it also imports, markets and distributes bulk propane, propylene and LPG to a variety of industrial customers in the western region and is one of the largest private sector suppliers in India. Lately company has ventured into lucrative business of marketing and retailing of LPG thru auto gas dispensing stations under the brand name ‘AEGIS Autogas’. From the present 38 retail outlets across five states, company intends to open 100~150 more such stations in next couple of years. Recently company took over Hindustan Aegis LPG and became the owner of 20,000 MT fully refrigerated LPG terminal. For FY09 it may clock a turnover of Rs 475 cr and profit of Rs 35 cr i.e. EPS of Rs 18 on equity of Rs 19.90 cr. A solid bet
Post the amalgamation of Rain Calcining with itself, Rain Commodities (190.00) has been posting encouraging nos on a consolidated basis. Currently, it is one of the largest producers of Calcined petroleum coke with 7 plants in USA and one plant in India and having total installed capacity of 2.40 million tonne of CPC. Besides, it also produces cement at its 1.60 million tonne cement plant in South India and sells it under the “PRIYA” brand. For the quarter ending June’08 it posted a net profit of Rs 94 cr on net sales of Rs 1081 cr. This is despite the fact company provided Rs 42 cr on restatement of foreign currency loan as per June exchange rate. Remarkably, its OPM stood at more than 25% and with CPC price expected to remain robust its margins may increase in H2FY08. In order to maintain its growth momentum in future and cash on the robust CPC demand, company is setting up two additional facilities for another 0.6 million tonne of calcined coke which will be operational by 2010. Meanwhile for CYFY08, it may report consolidated sales of Rs 4250 cr and NP of Rs 350 cr i.e. EPS of Rs 46 on fully diluted equity of approx Rs 76 cr. Keep accumulating at sharp declines.
From a high of more than Rs 1000 early this year, share price of KLG Systel (225.00) has been battered down badly and hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of Rs 285 cr. For FY09 it is expected to clock a turnover of Rs 350 cr and profit of Rs 60 cr i.e. EPS of Rs 41 on estimated diluted equity of around Rs 14.50 cr.
Aegis logistic (110.00) owns and operates one of India’s largest private sector liquid terminal located on a 20-acre plot at Trombay having storage capacity of 165,000 KL. With two other terminals it boasts of having a total capacity of around 290,000 KL. Considering the robust future outlook, it is setting up a third terminal in Trombay with a capacity of nearly 55,000 KL by FY10. On the other hand it also imports, markets and distributes bulk propane, propylene and LPG to a variety of industrial customers in the western region and is one of the largest private sector suppliers in India. Lately company has ventured into lucrative business of marketing and retailing of LPG thru auto gas dispensing stations under the brand name ‘AEGIS Autogas’. From the present 38 retail outlets across five states, company intends to open 100~150 more such stations in next couple of years. Recently company took over Hindustan Aegis LPG and became the owner of 20,000 MT fully refrigerated LPG terminal. For FY09 it may clock a turnover of Rs 475 cr and profit of Rs 35 cr i.e. EPS of Rs 18 on equity of Rs 19.90 cr. A solid bet
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