STOCK WATCH
Patels Airtemp (55.00) reported decent nos for the March’09 quarter. Despite sales declined by 5% to Rs 20 cr PAT improved by 15% to Rs 1.80 cr. For the full year it recorded 25% rise in turnover to Rs 68.50 cr and 40% increase in net profit to Rs 7 cr thereby posting an EPS of Rs 14 for FY09. Company has declared 18% dividend against 15% last year. 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. For FY10 it has the potential to register further 20% rise in revenue and profit. At a current enterprise value of Rs 35 cr and PE ratio of less than 4x times, scrip is trading reasonably cheap. Accumulate at declines.
Recently, ABG Shipyard (200.00) reported 35% rise in total revenue to Rs 371 cr and 15% increase in net profit to Rs 53 cr for March’09 quarter. Accordingly for full year its turnover shot up by 45% to Rs 1412 cr but PAT improved by 7% to Rs 173 cr. Thus it posted an EPS of Rs 34 on current equity of Rs 51 cr. Taking the benefit of recent amendment in AS11, company has capitalized Rs 22 cr of exchange difference. It is one of India’s largest private sector shipbuilding companies & established manufacturer and service provider of a variety of ships, including bulk carriers, interceptor boats, diving support vessels, anchor handling supply ships, dynamic positioning vessels, anchor handling tugs & other multipurpose vehicles. Till date it has delivered 104 ships and has further order book position of nearly Rs 10,000 cr to be executed in next 4~5 years. In the October last year it bagged its first rig order from Essar Oilfields Services Ltd, Mauritius. Importantly, company didn’t see any major order cancellation from its customers till now despite the all round fear and recession around the world. Notably, ABG is the first ship building company in private sector to actually receive the subsidy to the tune of Rs 19 cr from govt last year. As the shipbuilding industry in India is still at nascent stage and commands hardly 1% share in world market, it has tremendous growth potential ahead. Recently company has made a counter offer of Rs 375 per share (against Bharti Shipyards Rs 344 per share) to share holders of Great offshore Ltd to acquire 32% stake. This will lead to cash outflow of Rs 471 cr for which company is looking to raise the money thru equity placement. Buy at declines
Last week Accurate Transformers (30.00) reported very flat nos for the March’09 quarter as topline stood at Rs 91 cr and PAT at Rs 3.50 cr. As the company caters to govt organizations, its fourth quarter nos always constitute almost 50% of sales and profit. Accordingly it ended FY09 with 10% rise in sales to Rs 195 cr whereas net profit remained flat at Rs 7 cr. This translates into EPS of Rs 24 on a very tiny equity of Rs 3 cr. Company is engaged in manufacturing of power as well as distribution transformers ranging from 1 MVA to 40 MVA - in up to 220 KV class. It is looking to venture into manufacturing of higher capacity power Transformers of 160 MVA from FY10. It also carries out rural electrification project which involves the complete setting up of electricity in remote areas including the laying of lines, poles and substations. Unfortunately company is working at very low capacity utilization due to high working capital requirement and shortage of funds. On a gross block of Rs 11 cr company claims of having an installed transformer manufacturing capacity of 8000 MVA, of which 3000 MVA in Dehradun and Haridwar are relatively new and enjoy income tax and excise exemptions. Although market experts are skeptic about this company still aggressive investors can buy this scrip as it look grossly cheap at current market cap of Rs 15 cr.
HBL Power (100.00) came out disappointing nos for the March’09 quarter. It recorded 20% decline in net profit to Rs 18 cr on a flat sales of Rs 284 cr. Despite this on the full year basis, its topline grew by 30% to Rs 1244 cr and bottomline increase by 35% to Rs 91 cr leading to an EPS of Rs 37 on equity of Rs 24.30 cr. Company is a technology focused manufacturer of several ranges of specialized application batteries i.e. nickel cadmium (pocket, fibre, and sintered plate), lead acid (VRLA, Tubular, LMLA), silver oxide zinc, lithium, thermal, etc. Infact it is the market leader in VRLA (valve regulated lead acid) and NCPP (nickel cadium pocket plate) batteries and enjoys 50% market share of domestic telecom market. Infact it is the world’s second largest player in nickel cadium alkaline batteries and stands 3rd for Nicad Passenger aircraft batteries. It also manufactures other power electronics such as thyristor controlled battery chargers, earth leakage monitors, battery monitoring systems, industrial chargers, uninterrupted power systems, distribution boards etc. It even has a dedicated railway division to execute end-to-end turnkey railway signaling works, starting from yard design, estimation, procurement, installation and commissioning. Recently it has put up two new factories at Vizianagaram and SEZ Vizag in Visakhapatnam under a capex of Rs 150 cr and is now setting up a small facility in Mahape, New Mumbai. It is also planning to set up of JV Company in Saudi Arabia to manufacture Industrial Batteries. As the prices of lead, nickel, copper, tin and other metals has fallen considerably in the recent times, company may report better performance in coming quarters. Meanwhile just to improve the liquidity company has decided for stock split into face value of Rs 1/- per share. Although no super growth is expected for FY10 still this company deserves a better discounting and valuation. Keep accumulating at declines.
Recently, ABG Shipyard (200.00) reported 35% rise in total revenue to Rs 371 cr and 15% increase in net profit to Rs 53 cr for March’09 quarter. Accordingly for full year its turnover shot up by 45% to Rs 1412 cr but PAT improved by 7% to Rs 173 cr. Thus it posted an EPS of Rs 34 on current equity of Rs 51 cr. Taking the benefit of recent amendment in AS11, company has capitalized Rs 22 cr of exchange difference. It is one of India’s largest private sector shipbuilding companies & established manufacturer and service provider of a variety of ships, including bulk carriers, interceptor boats, diving support vessels, anchor handling supply ships, dynamic positioning vessels, anchor handling tugs & other multipurpose vehicles. Till date it has delivered 104 ships and has further order book position of nearly Rs 10,000 cr to be executed in next 4~5 years. In the October last year it bagged its first rig order from Essar Oilfields Services Ltd, Mauritius. Importantly, company didn’t see any major order cancellation from its customers till now despite the all round fear and recession around the world. Notably, ABG is the first ship building company in private sector to actually receive the subsidy to the tune of Rs 19 cr from govt last year. As the shipbuilding industry in India is still at nascent stage and commands hardly 1% share in world market, it has tremendous growth potential ahead. Recently company has made a counter offer of Rs 375 per share (against Bharti Shipyards Rs 344 per share) to share holders of Great offshore Ltd to acquire 32% stake. This will lead to cash outflow of Rs 471 cr for which company is looking to raise the money thru equity placement. Buy at declines
Last week Accurate Transformers (30.00) reported very flat nos for the March’09 quarter as topline stood at Rs 91 cr and PAT at Rs 3.50 cr. As the company caters to govt organizations, its fourth quarter nos always constitute almost 50% of sales and profit. Accordingly it ended FY09 with 10% rise in sales to Rs 195 cr whereas net profit remained flat at Rs 7 cr. This translates into EPS of Rs 24 on a very tiny equity of Rs 3 cr. Company is engaged in manufacturing of power as well as distribution transformers ranging from 1 MVA to 40 MVA - in up to 220 KV class. It is looking to venture into manufacturing of higher capacity power Transformers of 160 MVA from FY10. It also carries out rural electrification project which involves the complete setting up of electricity in remote areas including the laying of lines, poles and substations. Unfortunately company is working at very low capacity utilization due to high working capital requirement and shortage of funds. On a gross block of Rs 11 cr company claims of having an installed transformer manufacturing capacity of 8000 MVA, of which 3000 MVA in Dehradun and Haridwar are relatively new and enjoy income tax and excise exemptions. Although market experts are skeptic about this company still aggressive investors can buy this scrip as it look grossly cheap at current market cap of Rs 15 cr.
HBL Power (100.00) came out disappointing nos for the March’09 quarter. It recorded 20% decline in net profit to Rs 18 cr on a flat sales of Rs 284 cr. Despite this on the full year basis, its topline grew by 30% to Rs 1244 cr and bottomline increase by 35% to Rs 91 cr leading to an EPS of Rs 37 on equity of Rs 24.30 cr. Company is a technology focused manufacturer of several ranges of specialized application batteries i.e. nickel cadmium (pocket, fibre, and sintered plate), lead acid (VRLA, Tubular, LMLA), silver oxide zinc, lithium, thermal, etc. Infact it is the market leader in VRLA (valve regulated lead acid) and NCPP (nickel cadium pocket plate) batteries and enjoys 50% market share of domestic telecom market. Infact it is the world’s second largest player in nickel cadium alkaline batteries and stands 3rd for Nicad Passenger aircraft batteries. It also manufactures other power electronics such as thyristor controlled battery chargers, earth leakage monitors, battery monitoring systems, industrial chargers, uninterrupted power systems, distribution boards etc. It even has a dedicated railway division to execute end-to-end turnkey railway signaling works, starting from yard design, estimation, procurement, installation and commissioning. Recently it has put up two new factories at Vizianagaram and SEZ Vizag in Visakhapatnam under a capex of Rs 150 cr and is now setting up a small facility in Mahape, New Mumbai. It is also planning to set up of JV Company in Saudi Arabia to manufacture Industrial Batteries. As the prices of lead, nickel, copper, tin and other metals has fallen considerably in the recent times, company may report better performance in coming quarters. Meanwhile just to improve the liquidity company has decided for stock split into face value of Rs 1/- per share. Although no super growth is expected for FY10 still this company deserves a better discounting and valuation. Keep accumulating at declines.
1 comment:
Before investing your money you should take advice from any best advisory like Epic Research who have a good knowledge about the market.
Post a Comment