Although Accurate Transformers Ltd. (Code: 530513) (Rs.130) is unable to fully capitalise on the boom in the power sector and registered a normal growth it’s still a value buy at the current level. For Q4FY08, it posted 10% rise in sales as well as net profit to Rs.95 cr. and Rs.3.40 cr. respectively. Accordingly for FY08, sales improved by 15% to Rs.197 cr. and PAT grew by 25% to Rs.7.90 cr. This translates into a healthy EPS of Rs.27 on its very tiny equity of Rs.2.97 cr. Due to shortage of working capital funds, the company is running at a very low capacity utilisation. Earlier, it tried to raise capital by a preferential allotment of around 31 lakh warrants at Rs.56 to promoters but it did not get SEBI approval due to some technical reason. The company has huge manufacturing facilities spread across Ghaziabad, Sikandrabad, Greater Noida, Dehradun and Haridwar with an installed capacity to manufacture nearly 8000 MVA of transformers. At a very modest discounting by 6-7 times, the share price can move up to Rs.175 in 6-9 months.
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On an year-on-year (YoY) basis, Q4FY08 results of Tera Software Ltd. (Code: 590020) (Rs.50.50) look very disappointing as revenue declined by nearly 50% to Rs.16 cr. and PAT fell by 40% to Rs.3 cr. But if we examine quarter-on-quarter (Qo Q) basis, it posted the highest sale among all the four quarters of FY08. This implies that the company may have completed some big e-governance project in Q4FY07. Still for FY08, it posted marginal growth in revenue to Rs.59 cr. and 15% increase in PAT to Rs.12.25 cr. after making the highest tax provision of 38%. It reported an EPS of Rs.11 on its equity of Rs.12.50 cr. and may declare 25% dividend for FY08. Of late, the company has been empanelled as a vendor for the rollout of IT services in the government sector through National Informatics Centre Services Inc. for a period of one year, which can be extended by another year. Looking at its strong order book position, it may end FY09 with sales of Rs.75 cr. and profit of Rs.16 cr. i.e. an EPS of Rs.13. Also as per reliable sources, the company is planning to dispose off its 20 acres surplus land in Hyderabad, which is worth Rs.40 cr. Once the deal is finalised, its share price will shoot up.
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Amar Remedies Ltd. (Code: 532664) (Rs.29.40) is a well-known manufacturer of ayurvedic, herbal and cosmetic dental care, personal care, skin care, beauty care & healthcare products like tooth pastes, toothpowders, shampoos, creams, lotions, shaving gels, balm & pain relieving ointments. Besides, it has successfully developed 24 different ayurvedic and herbal medicines and has also obtained the FDA approval for the manufacture and sale of these medicines, which include medicines for hypertension, diabetes, and heart ailments. Recently, it came out with excellent results for the December 2007 quarter as sales jumped by 70% to Rs.73 cr. and PAT increased by 40% to Rs.5.60 cr. However, the company is yet to start commercial production at its newly set up Dehradun facility as it is awaiting the clearance certificate the from pollution control authorities. On the back of aggressive capex, it has tripled its gross block from Rs.35 cr. to almost Rs.100 cr. For FY08 ending 30th June 2008, it can register sales of Rs.300 cr. with PAT of Rs.20 cr. i.e. an EPS of Rs.8 on its equity of Rs.26.20 cr. A safe bet in the current market sentiments.
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Mazda Ltd. (Code: 523792) (Rs.73.35) is among the few engineering companies in the world manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilisers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly, its product profile is segmented into Vacuum systems, Valves, Air pollution control equipment, Crystallisers and Evaporators. It came out with satisfactory results for Q4FY08 and ended FY08 on quite a buoyant note. For FY08, its sales improved by 15% to Rs.60.50 cr. whereas profit increased by 30% to Rs.6.60 cr. Hence it registered a very healthy EPS of Rs.15.50 on its small equity of Rs.4.26 cr. Importantly, the company has technical collaboration with world renowned Croll-Reynolds Inc., USA, which holds 12% stake in the company. To cater to the increasing demand, it is setting up a third unit at an investment of approx. Rs.5.6 cr. Despite the promising future, this hi-tech engineering company is available very cheap at an enterprise value of around Rs.40 cr. and is a screaming buy.
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On an year-on-year (YoY) basis, Q4FY08 results of Tera Software Ltd. (Code: 590020) (Rs.50.50) look very disappointing as revenue declined by nearly 50% to Rs.16 cr. and PAT fell by 40% to Rs.3 cr. But if we examine quarter-on-quarter (Qo Q) basis, it posted the highest sale among all the four quarters of FY08. This implies that the company may have completed some big e-governance project in Q4FY07. Still for FY08, it posted marginal growth in revenue to Rs.59 cr. and 15% increase in PAT to Rs.12.25 cr. after making the highest tax provision of 38%. It reported an EPS of Rs.11 on its equity of Rs.12.50 cr. and may declare 25% dividend for FY08. Of late, the company has been empanelled as a vendor for the rollout of IT services in the government sector through National Informatics Centre Services Inc. for a period of one year, which can be extended by another year. Looking at its strong order book position, it may end FY09 with sales of Rs.75 cr. and profit of Rs.16 cr. i.e. an EPS of Rs.13. Also as per reliable sources, the company is planning to dispose off its 20 acres surplus land in Hyderabad, which is worth Rs.40 cr. Once the deal is finalised, its share price will shoot up.
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Amar Remedies Ltd. (Code: 532664) (Rs.29.40) is a well-known manufacturer of ayurvedic, herbal and cosmetic dental care, personal care, skin care, beauty care & healthcare products like tooth pastes, toothpowders, shampoos, creams, lotions, shaving gels, balm & pain relieving ointments. Besides, it has successfully developed 24 different ayurvedic and herbal medicines and has also obtained the FDA approval for the manufacture and sale of these medicines, which include medicines for hypertension, diabetes, and heart ailments. Recently, it came out with excellent results for the December 2007 quarter as sales jumped by 70% to Rs.73 cr. and PAT increased by 40% to Rs.5.60 cr. However, the company is yet to start commercial production at its newly set up Dehradun facility as it is awaiting the clearance certificate the from pollution control authorities. On the back of aggressive capex, it has tripled its gross block from Rs.35 cr. to almost Rs.100 cr. For FY08 ending 30th June 2008, it can register sales of Rs.300 cr. with PAT of Rs.20 cr. i.e. an EPS of Rs.8 on its equity of Rs.26.20 cr. A safe bet in the current market sentiments.
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Mazda Ltd. (Code: 523792) (Rs.73.35) is among the few engineering companies in the world manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilisers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly, its product profile is segmented into Vacuum systems, Valves, Air pollution control equipment, Crystallisers and Evaporators. It came out with satisfactory results for Q4FY08 and ended FY08 on quite a buoyant note. For FY08, its sales improved by 15% to Rs.60.50 cr. whereas profit increased by 30% to Rs.6.60 cr. Hence it registered a very healthy EPS of Rs.15.50 on its small equity of Rs.4.26 cr. Importantly, the company has technical collaboration with world renowned Croll-Reynolds Inc., USA, which holds 12% stake in the company. To cater to the increasing demand, it is setting up a third unit at an investment of approx. Rs.5.6 cr. Despite the promising future, this hi-tech engineering company is available very cheap at an enterprise value of around Rs.40 cr. and is a screaming buy.
Source: moneytimes (internet)
