Sunday, March 21, 2010

stock idea: Oil Country Tubular Ltd.

Oil Country Tubular Ltd. (Code: 500313) (Rs.108) is a leading global company processing a range of tubular goods needed for oil drilling and exploration. Its wide product range covers drill pipes, heavy weight drill pipes, drill collars, production tubings, casings, tool joints, couplings, pup joints, nipples, subs, and crossovers. Last year, the US government had imposed heavy anti-dumping duty on Chinese imports of certain oil country tubular products, which may have worked in favour of the company. It is also quite active on the export front as nearly 50% of its total revenue comes from exports. For future growth, it plans to set up a joint venture between Golden Dunes International, Oman, & UMW Petropipes (L) Ltd, Malaysia, for putting up a pipe threading facility in Oman. Financially, the company is doing well and has cleared all its term loans and emerged debt-free. However for the December 2009 quarter, it reported a very disappointing performance with a drastic fall in the topline itself and did not give any explanation for such poor sales. Market players are now keenly waiting for its March 2010 quarter numbers. Based on the current situation, it may end FY10 with sales of Rs.325 cr. with PAT of Rs.55 cr. i.e. an EPS of Rs.12 on its equity of Rs.44.30 cr. Aggressive traders can take a call to buy the scrip before the Q4FY10 results are announced.

Source: Internet (Moneytimes)

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