Small & Beautiful
For the Dec’08 quarter, Gayatri Project (80.00) reported 25% rise in revenue to Rs 256 cr but profit declined by 20% to Rs 10.70 cr. However for the nine months ending Dec 08, its topline has increased by 40% to Rs 670 cr and PAT has also risen by 15% to Rs 30.50 cr thereby posting an EPS of Rs 30 till date. Company is engaged in execution of major civil works including concrete/masonry dams, earth filling dams, national highways, bridges, canals, aqueducts, ports, etc. Although the company has executed various projects in different sectors of infrastructure, its expertise lies mainly in the road and irrigation sectors. Of late company has moved up the value chain and is executing five lucrative BOT road projects which are estimated of having very healthy IRR of around 14%. It has also entered into joint ventures with DLF for construction of road on BOT basis and with ION Exchange for water transport projects. Moreover company boasts of having a massive order book position of more than Rs 3000 cr which is 4x times its FY08 turnover thereby providing strong revenue visibility. Notably, irrigation projects constitute 30%, transportation projects 60% and industrial building constitutes the balance 10% of order book. Despite having huge debt of Rs 450 on its books company can be bought at current market cap of Rs 80 cr.
Interestingly, even though sales of Vivimed Labs (40.00) declined by nearly 15% to Rs 35 cr, its operating profit jumped up 40% to Rs 11 cr on the back of very healthy OPM of 32%. Thus it recorded 60% rise in NP to Rs 6.50 cr posting an EPS of approx Rs 7 for the single quarter. It also already clocked an EPS of more than Rs 17 in the first three quarters. It’s a specialty 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. Last year it acquired 100% stake in M/s James Robinson,UK and accordingly on a consolidated basis has reported sales of Rs 211 cr and PAT of Rs 18 cr for the nine months ending Dec 08. Recently, company has decided to acquire Har-met International Inc a small importer of pharmaceutical & cosmetic product, based in USA. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. With an expected EPS of Rs 20 on a consolidated basis, company is available reasonably cheap at current market cap of less than Rs 40 cr.
At the time when most of the biggies are reporting dismal nos, a small company name Patels Airtemp (30.00) has come out with fantastic result. For the Dec’08 quarter, it recorded 30% rise in sales as well as NP to Rs 13 cr & 1.75 cr respectively. Even for nine months, it has recorded 35% increase in sales to Rs 49 cr and 40% jump in NP to Rs 5.20 cr thereby posting an EPS of Rs 10 till date. Company is engaged in the manufacture and sale of extensive range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, air-conditioning and refrigeration equipments and turnkey HVAC projects in India & marketing of equipments even outside India. It has technical collaboration with M/S. TEK FINS Inc. USA for design and manufacture of air cooled heat exchangers. It supplies to core industrial sectors like power, refineries, fertilizers, cements, petrochemicals, pharmaceuticals, textiles and chemical Industries. For future growth company is concentrating more on high value added engineering products and has even got its product the coveted ASME `U' Stamp authorization. It may end FY09 with sales of Rs 60 cr and PAT of Rs 6 cr leading to an EPS of Rs 12 on equity of Rs 5 cr. A good bet with limited downfall risk.
Most of the retail investors are selling Shanthi Gears (32.00) as it posted more than 40% decline in net profit for the Dec quarter. But during the quarter, company has incurred one time extraordinary expenditure of Rs 7 cr as interest and forex loss towards redemption of FCCB. So excluding this, company has reported almost flat nos with PBT of Rs 17.50 & PAT of Rs 11.50 cr. It is not an auto ancillary company although name suggest, but infact it is the second largest player in industrial gear segment with 20% market share and at the same time is the undisputed leader in the customized product segment where the manufacturing is as per clients’ requirements. Of late, company has even started manufacturing gearboxes of 250 KV for windmills. Incidentally, the recent fall in steel and other metals will reduce its input cost considerably and may give a good fillip to its bottomline in coming qtrs. For FY09 it may clock a turnover of Rs 235 cr and PAT of Rs 38 cr i.e. EPS of Rs 5 on equity of Rs 8.17 cr having face value as Rs 1/- per share. Moreover if rumors are to be believed then at one time, India’s largest windmill manufacturer Suzlon, through its subsidiary Hansen Transmission (world’s fifth largest maker of gearbox), was interested in taking a stake in the company. If it happens anytime in future, this may lead to re-rating of the company and share price may see a vertical rise.
Interestingly, even though sales of Vivimed Labs (40.00) declined by nearly 15% to Rs 35 cr, its operating profit jumped up 40% to Rs 11 cr on the back of very healthy OPM of 32%. Thus it recorded 60% rise in NP to Rs 6.50 cr posting an EPS of approx Rs 7 for the single quarter. It also already clocked an EPS of more than Rs 17 in the first three quarters. It’s a specialty 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. Last year it acquired 100% stake in M/s James Robinson,UK and accordingly on a consolidated basis has reported sales of Rs 211 cr and PAT of Rs 18 cr for the nine months ending Dec 08. Recently, company has decided to acquire Har-met International Inc a small importer of pharmaceutical & cosmetic product, based in USA. Organically as well company has been expanding its capacity and has chalked out Greenfield expansion plan in Uttaranchal and Hyderabad. With an expected EPS of Rs 20 on a consolidated basis, company is available reasonably cheap at current market cap of less than Rs 40 cr.
At the time when most of the biggies are reporting dismal nos, a small company name Patels Airtemp (30.00) has come out with fantastic result. For the Dec’08 quarter, it recorded 30% rise in sales as well as NP to Rs 13 cr & 1.75 cr respectively. Even for nine months, it has recorded 35% increase in sales to Rs 49 cr and 40% jump in NP to Rs 5.20 cr thereby posting an EPS of Rs 10 till date. Company is engaged in the manufacture and sale of extensive range of heat exchangers such as shell & tube type, finned tube type and air cooled heat exchangers, pressure vessels, air-conditioning and refrigeration equipments and turnkey HVAC projects in India & marketing of equipments even outside India. It has technical collaboration with M/S. TEK FINS Inc. USA for design and manufacture of air cooled heat exchangers. It supplies to core industrial sectors like power, refineries, fertilizers, cements, petrochemicals, pharmaceuticals, textiles and chemical Industries. For future growth company is concentrating more on high value added engineering products and has even got its product the coveted ASME `U' Stamp authorization. It may end FY09 with sales of Rs 60 cr and PAT of Rs 6 cr leading to an EPS of Rs 12 on equity of Rs 5 cr. A good bet with limited downfall risk.
Most of the retail investors are selling Shanthi Gears (32.00) as it posted more than 40% decline in net profit for the Dec quarter. But during the quarter, company has incurred one time extraordinary expenditure of Rs 7 cr as interest and forex loss towards redemption of FCCB. So excluding this, company has reported almost flat nos with PBT of Rs 17.50 & PAT of Rs 11.50 cr. It is not an auto ancillary company although name suggest, but infact it is the second largest player in industrial gear segment with 20% market share and at the same time is the undisputed leader in the customized product segment where the manufacturing is as per clients’ requirements. Of late, company has even started manufacturing gearboxes of 250 KV for windmills. Incidentally, the recent fall in steel and other metals will reduce its input cost considerably and may give a good fillip to its bottomline in coming qtrs. For FY09 it may clock a turnover of Rs 235 cr and PAT of Rs 38 cr i.e. EPS of Rs 5 on equity of Rs 8.17 cr having face value as Rs 1/- per share. Moreover if rumors are to be believed then at one time, India’s largest windmill manufacturer Suzlon, through its subsidiary Hansen Transmission (world’s fifth largest maker of gearbox), was interested in taking a stake in the company. If it happens anytime in future, this may lead to re-rating of the company and share price may see a vertical rise.
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