STOCK WATCH
MIC Electronics (45.00) is a pioneer in design, development, manufacture & supply of true color LED Video Displays, LED Lighting products and solutions. Infact, it is the only integrated LED display manufacturer in India with design-to-manufacture capabilities. Being a sunrise technology, its products have tremendous potential for growth and hence to cash on the opportunity, company commissioned a state of the art fully automated manufacturing line at Hyderabad last year. With this EOU facility, it has doubled the production capacity of LED display to 2400 modules from 1200 modules earlier. It is further contemplating to take its total capacity to 3600 modules in near future. To maintain the growth momentum, it is setting up of manufacturing unit for LED true colour displays, LED lighting solutions and solar based LED lighting products at Fab City SEZ near Hyderabad for which it has already been allotted 50 acre of land on lease. Lately, company has got the RDSO approval for its unique & innovative video cum train info display system thereby becoming the first and only company to get such approval. Operationally, company has reported dismissal performance for the last two quarters due to general economic slowdown. However for FY09 ending June’09 it is estimated to clock a turnover of Rs 260 cr and PAT of Rs 65 cr on a standalone basis which works out to an EPS of Rs 6.50 on current equity of Rs 20 cr having face value as Rs 2/- per share. Keep accumulating at every declines.
Panama Petrochem (115.00) is one of India’s leading manufacturers and exporters of petroleum specialty products with an installed capacity of 69000 MTPA. For future growth company is contemplating to set up a Greenfield plant at another tax free zone like Uttarakhand or Baddi. At the same time, it has also gone for an inorganic growth and has acquired a related private company called “Mobil Petrochem”. It has even finalized the share swap ratio as one share of PPL for every two shares held in Mobil Petrochem. Although company is yet to declare it March’09 quarter nos but for nine months ending Dec’08, it has clocked whopping 70% jump in sales to Rs 299 cr but 40% increase in PAT to Rs 18.50 cr due to higher tax provisioning. Hence it has already clocked an EPS of Rs 39 till date on current equity of Rs 4.76 cr. So for the entire FY09 it may report sales of Rs 375 cr and PAT of Rs 22 cr on conservative basis i.e. EPS of Rs 46 on current equity. However the equation may change post merger from Q1FY10. In the meantime company is expected to declare 50% dividend which gives a yield of 5% at CMP.
Cosmo Films (100.00) is one of the dominant players in the Bi-axially Oriented Polypropylene Films (BOPP) market in India with a 23% market share and also one of the lowest cost producers of BOPP films in the world. It currently boast of having an installed capacity of 56000 MTPA of BOPP films, 21000 MTPA of thermal lamination films & 3000 MTPA of metallized films. Importantly, company is the only Indian player to manufacture thermal laminated films which is a high margin business. Despite demand supply mismatch, company is working at 100% capacity and is further expanding its BOPP capacity to 136000 MTPA & metalized films to 10500 in phases. It has even started a coating film with a capacity of 12000 MTPA last year. Recently company has decided to acquire a USA based company providing thermal lamination films and equipment in Europe, North America, Japan and the Pacific region. However the deal is expected to get complete by Sept 2009. Because of organized retailing, increasing mall culture and higher spending capacity, FMCG and food processing industry is witnessing phenomenal growth and hence domestic BOPP market is also growing @ 15~20 % per annum. Company has already posted an EPS of Rs 17 for nine months and is expected to declare its nos on 5th June 2009. It may end FY09 with sales of Rs 650 cr and PAT of Rs 40 cr i.e. EPS of Rs 21 on current equity of Rs 19.40 cr. It may declare 40% dividend for FY09 which gives a yield of nearly 7% at CMP.
Cera Sanitary (100.00) is one such ceramic company who is constantly churning out good nos without showing any impact of slowdown or margin pressure. Even during such slowdown period company has been able to increase its topline by healthy 20% to Rs 46 cr for the March’09 qtr and 10% rise in net profit to Rs 3.70 cr thereby posting an EPS of Rs 6 for the single quarter. Remarkably company has been able to maintain its operating margin above 20% at the time when its competitors have witnessed drastic margin erosion to keep up the sales. It is the third largest company in the organized sanitaryware segment with over 20% market share in domestic market. Moreover in the last couple of years, company has evolved itself into a total bathroom solutions provider with a wide product range for the mass as well as niche segment. 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. Because of all the initiatives taken by the management company has ended FY09 with 20% growth in sales to Rs 170 cr whereas PAT has shot up whopping 30% to Rs 13 cr, despite an extra ordinary expense to the tune of Rs 1.60 cr. This works to an EPS of Rs 21 cr on current equity of Rs 3.11 having face value of Rs 5/- per share. Company has even declare 40% dividend i.e. Rs 2 per share. A gem of a company.
Panama Petrochem (115.00) is one of India’s leading manufacturers and exporters of petroleum specialty products with an installed capacity of 69000 MTPA. For future growth company is contemplating to set up a Greenfield plant at another tax free zone like Uttarakhand or Baddi. At the same time, it has also gone for an inorganic growth and has acquired a related private company called “Mobil Petrochem”. It has even finalized the share swap ratio as one share of PPL for every two shares held in Mobil Petrochem. Although company is yet to declare it March’09 quarter nos but for nine months ending Dec’08, it has clocked whopping 70% jump in sales to Rs 299 cr but 40% increase in PAT to Rs 18.50 cr due to higher tax provisioning. Hence it has already clocked an EPS of Rs 39 till date on current equity of Rs 4.76 cr. So for the entire FY09 it may report sales of Rs 375 cr and PAT of Rs 22 cr on conservative basis i.e. EPS of Rs 46 on current equity. However the equation may change post merger from Q1FY10. In the meantime company is expected to declare 50% dividend which gives a yield of 5% at CMP.
Cosmo Films (100.00) is one of the dominant players in the Bi-axially Oriented Polypropylene Films (BOPP) market in India with a 23% market share and also one of the lowest cost producers of BOPP films in the world. It currently boast of having an installed capacity of 56000 MTPA of BOPP films, 21000 MTPA of thermal lamination films & 3000 MTPA of metallized films. Importantly, company is the only Indian player to manufacture thermal laminated films which is a high margin business. Despite demand supply mismatch, company is working at 100% capacity and is further expanding its BOPP capacity to 136000 MTPA & metalized films to 10500 in phases. It has even started a coating film with a capacity of 12000 MTPA last year. Recently company has decided to acquire a USA based company providing thermal lamination films and equipment in Europe, North America, Japan and the Pacific region. However the deal is expected to get complete by Sept 2009. Because of organized retailing, increasing mall culture and higher spending capacity, FMCG and food processing industry is witnessing phenomenal growth and hence domestic BOPP market is also growing @ 15~20 % per annum. Company has already posted an EPS of Rs 17 for nine months and is expected to declare its nos on 5th June 2009. It may end FY09 with sales of Rs 650 cr and PAT of Rs 40 cr i.e. EPS of Rs 21 on current equity of Rs 19.40 cr. It may declare 40% dividend for FY09 which gives a yield of nearly 7% at CMP.
Cera Sanitary (100.00) is one such ceramic company who is constantly churning out good nos without showing any impact of slowdown or margin pressure. Even during such slowdown period company has been able to increase its topline by healthy 20% to Rs 46 cr for the March’09 qtr and 10% rise in net profit to Rs 3.70 cr thereby posting an EPS of Rs 6 for the single quarter. Remarkably company has been able to maintain its operating margin above 20% at the time when its competitors have witnessed drastic margin erosion to keep up the sales. It is the third largest company in the organized sanitaryware segment with over 20% market share in domestic market. Moreover in the last couple of years, company has evolved itself into a total bathroom solutions provider with a wide product range for the mass as well as niche segment. 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. Because of all the initiatives taken by the management company has ended FY09 with 20% growth in sales to Rs 170 cr whereas PAT has shot up whopping 30% to Rs 13 cr, despite an extra ordinary expense to the tune of Rs 1.60 cr. This works to an EPS of Rs 21 cr on current equity of Rs 3.11 having face value of Rs 5/- per share. Company has even declare 40% dividend i.e. Rs 2 per share. A gem of a company.
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