Its a medium size company with good prospects. Since electricity generation, transmission is on the priority, transformers and transformer oil also will be in the demand. It also high multiple wind power plants solely for internal consumption. The only downside is the crude prices which is its raw material.
Current PE ratio is barely 8.1. Last few quarter's results are promising. Q'2-11 profit has increased by 38%. The company also have ample reserves. The book value stands at Rs. 219 with capital of Rs 14 Cr. This whole years EPS will be more than 70. They issued bonus shares in 2007. Another bonus can not be ruled out.
Following are the company's financials.
| | 2Q’11 | 2Q’10 | FY10 | FY09 |
| Sales | 373.10 | 275.19 | 1340 | 1298 |
| Net Profit | 30.01 | 21.65 | 86.38 | 17.23 |
| NPM | 8.04% | 7.86% | 7.31% | 1.49% |
| EPS | 20.55 | 14.83 | 59.16 | 11.80 |
| Book Value (in Rs) | NA | NA | 218.99 | 177.32 |
| Dividend (in Rs) | | | 15.00 | 5.00 |
2 comments:
Thanks for the analysis and recommendation
After posting this blog the price came rightly below 480.00 and now it is at Rs 560.00 Additionally they declared Rs 20.00 dividend. They will continue to increase this. This is the situation when entire market is going in down.
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