STOCK WATCH
For the latest Dec’08 quarter 3i Infotech (30.00) reported encouraging set of nos as its total revenue grew by 90% to Rs 616 cr and PAT increased by 40% to Rs 70 cr on a consolidated basis. Accordingly for the nine months ending Dec’08 it has posted a topline of Rs 1694 cr and bottomline of Rs 200 cr which means company has already clocked an EPS of Rs 14 in the first three quarters. As on date, company has a pending order book position of more than Rs 1400 cr to be executed in next one year. To maintain its organic growth, company is in the midst of opening 255 new service centres in tier-II and tier-II cities to help banks and financial institutions in decreasing the processing time for various back office operations. It has also bagged a huge contract from Central govt for setting up over 12,000 kiosks, spread across various states in India, for providing citizen services centers to be used for dispensing G2C and B2C services. It has recently made a strategic tie up with ICICI Lombard, Airtel and Max Newyork Life to open 12,500 retail stores in rural areas to offer bouquet of retail services in general insurance, telecom and life insurance sector respectively. Earlier it formed a 51% joint venture with Chinese company who will localize the financial technology software from 3i Infotech to cater to the requirements of China's diversified financial services sector. With an expected EPS of Rs 16 for entire FY09, this scrip is trading grossly cheap at current market cap of Rs 400 cr. Keep accumulating at declines
Despite other construction companies going thru a rough patch and liquidity crunch, J Kumar (55.00) has posted decent result for the Dec qtr. It registered total revenue of Rs 90 cr and PAT of Rs 7.13 thereby posting an EPS of Rs 3.40 for the quarter. Accordingly for first three quarters it has clocked a turnover of Rs 265 cr and profit of Rs 20.85 cr. Company is a Mumbai based EPC company with a primary focus on construction of roads, flyovers, bridges, railway over bridges, subways, irrigation projects, commercial and residential buildings, railway buildings and piling works. It also has a ready mix concrete plant for captive use. Its operations are largely confined in the state of Maharashtra with majority in Mumbai itself. The company is a class I A contractor with PWD, Government of Maharashtra. Due to govt’s special focus & aggressive spending on infrastructure, company is witnessing best of its time and boast of having an all time high order book position to the tune of Rs 1200 cr executable in next two years. It is expected to report a topline of Rs 350 cr and bottomline of Rs 25 cr for FY09 which translates into EPS of Rs 12 on current equity of Rs 20.70 cr. Scrip can be bought at current levels for short term gain.
Cera Sanitary (65.00) is one such ceramic company who is constantly churning out good nos without showing any impact of slowdown or margin pressure. It has reported 10% growth in sales to Rs 38 cr and 35% jump in PAT to Rs 3 cr for the Dec quarter. It is the third largest company in the organized sanitaryware segment with over 20% market share in domestic market. Notably, in the last couple of years, company has evolved itself into a total bathroom solutions provider with a wide product range including WC’s, wash basins, whirlpools, bath tubs, shower panels, shower cubicles, shower temples, bath fittings, kitchen sinks, tiles etc. In line with today’s high technology it also provides automatic electronic flushing system, automatic water flow sensor tap, automatic hand dryers/soap dispensers, & perfume sprayer. It even has a strategic tie-up with Pozzi-Ginori, an Italian designer sanitaryware for importing premium sanitaryware and marketing it in India. To take the benefit of high demand, it has recently expanded its production capacity to 24,000 MTPA from 16,500 MTPA. To boost up its retail sales, company came up with novel idea of setting up live CERA bath studio where consumers, architectures, interior designers etc can actually see how the premium products will look, feel and function in their homes. It has already setup eight such studios across India and is now putting up Cera Bath Galleries with its retail partners. Further company is planning a major foray into taps as there is only one strong Indian brand, followed by mediocre brands. Considering its nine month figures, it may register sales of Rs 150 cr and PAT of Rs 11 cr i.e. EPS of Rs 18 on current equity for FY09. Buy at sharp declines only.
Although not so encouraging but still Mazda Ltd (30.00) has declared satisfactory result for the Dec quarter. Sales declined marginally by 7% to Rs 17 cr and net profit fell by 12% to Rs 2 cr. Despite this its year to date figures look encouraging with 30% growth in topline as well as bottomline. Company is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into vacuum system, valve division, air pollution control equipment, crystallizers and evaporators. Notably, it has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. However, due to ongoing slowdown globally as well as domestically, most of the industrial units are either postponing their capex plan or putting it under back burner. This may hamper the future growth of the company. But fundamentally, company is on a strong footing with very low debt equity ratio and good reserves leading to a book value of Rs 61. On a conservative basis, for FY09 it is slated to register sales of Rs 70 cr and profit of Rs 7.50 cr. This works out to an EPS of Rs 18 on current equity of Rs 4.25 cr. At an Enterprise value of merely Rs 20 cr scrip and at a P/E multiple of less than 2x times, scrip is trading damn cheap.
Despite other construction companies going thru a rough patch and liquidity crunch, J Kumar (55.00) has posted decent result for the Dec qtr. It registered total revenue of Rs 90 cr and PAT of Rs 7.13 thereby posting an EPS of Rs 3.40 for the quarter. Accordingly for first three quarters it has clocked a turnover of Rs 265 cr and profit of Rs 20.85 cr. Company is a Mumbai based EPC company with a primary focus on construction of roads, flyovers, bridges, railway over bridges, subways, irrigation projects, commercial and residential buildings, railway buildings and piling works. It also has a ready mix concrete plant for captive use. Its operations are largely confined in the state of Maharashtra with majority in Mumbai itself. The company is a class I A contractor with PWD, Government of Maharashtra. Due to govt’s special focus & aggressive spending on infrastructure, company is witnessing best of its time and boast of having an all time high order book position to the tune of Rs 1200 cr executable in next two years. It is expected to report a topline of Rs 350 cr and bottomline of Rs 25 cr for FY09 which translates into EPS of Rs 12 on current equity of Rs 20.70 cr. Scrip can be bought at current levels for short term gain.
Cera Sanitary (65.00) is one such ceramic company who is constantly churning out good nos without showing any impact of slowdown or margin pressure. It has reported 10% growth in sales to Rs 38 cr and 35% jump in PAT to Rs 3 cr for the Dec quarter. It is the third largest company in the organized sanitaryware segment with over 20% market share in domestic market. Notably, in the last couple of years, company has evolved itself into a total bathroom solutions provider with a wide product range including WC’s, wash basins, whirlpools, bath tubs, shower panels, shower cubicles, shower temples, bath fittings, kitchen sinks, tiles etc. In line with today’s high technology it also provides automatic electronic flushing system, automatic water flow sensor tap, automatic hand dryers/soap dispensers, & perfume sprayer. It even has a strategic tie-up with Pozzi-Ginori, an Italian designer sanitaryware for importing premium sanitaryware and marketing it in India. To take the benefit of high demand, it has recently expanded its production capacity to 24,000 MTPA from 16,500 MTPA. To boost up its retail sales, company came up with novel idea of setting up live CERA bath studio where consumers, architectures, interior designers etc can actually see how the premium products will look, feel and function in their homes. It has already setup eight such studios across India and is now putting up Cera Bath Galleries with its retail partners. Further company is planning a major foray into taps as there is only one strong Indian brand, followed by mediocre brands. Considering its nine month figures, it may register sales of Rs 150 cr and PAT of Rs 11 cr i.e. EPS of Rs 18 on current equity for FY09. Buy at sharp declines only.
Although not so encouraging but still Mazda Ltd (30.00) has declared satisfactory result for the Dec quarter. Sales declined marginally by 7% to Rs 17 cr and net profit fell by 12% to Rs 2 cr. Despite this its year to date figures look encouraging with 30% growth in topline as well as bottomline. Company is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into vacuum system, valve division, air pollution control equipment, crystallizers and evaporators. Notably, it has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. However, due to ongoing slowdown globally as well as domestically, most of the industrial units are either postponing their capex plan or putting it under back burner. This may hamper the future growth of the company. But fundamentally, company is on a strong footing with very low debt equity ratio and good reserves leading to a book value of Rs 61. On a conservative basis, for FY09 it is slated to register sales of Rs 70 cr and profit of Rs 7.50 cr. This works out to an EPS of Rs 18 on current equity of Rs 4.25 cr. At an Enterprise value of merely Rs 20 cr scrip and at a P/E multiple of less than 2x times, scrip is trading damn cheap.
No comments:
Post a Comment