VIP Industries
VIP Industries is the second largest luggage manufacturer in the world. In FY09, due to the recession the company reported a marginal loss at consolidated level, which pulled its market cap below Rs 100 crore. Since then the company has shut some of its operations in the West and raised focus on high margin products, resulting in a tremendous rise in profitability. The June 2010 quarter showed a growth of 50% over its previous year's corresponding quarter. Going ahead, a revival in the western market would add to the profitability. Though the outlook of the company still looks good, it is already factored in the current share price. Investors may consider buying into it only after a cool-off.
VIP Industries is the second largest luggage manufacturer in the world. In FY09, due to the recession the company reported a marginal loss at consolidated level, which pulled its market cap below Rs 100 crore. Since then the company has shut some of its operations in the West and raised focus on high margin products, resulting in a tremendous rise in profitability. The June 2010 quarter showed a growth of 50% over its previous year's corresponding quarter. Going ahead, a revival in the western market would add to the profitability. Though the outlook of the company still looks good, it is already factored in the current share price. Investors may consider buying into it only after a cool-off.
Return 22.9x Stock Price 776.6. PE 35.3 Market Cap 2194.7cr
Ahluwalia Contracts
The stock of the company showed an impressive stock performance due to a continuous order flow. The company moved up in the value chain by venturing into build-operate-transfer (BOT) for urban infrastructure projects. It has reported a 35% growth in revenue on the back of execution of Commonwealth Games projects, which led to double its net profits to Rs 82 crore for FY10. It had an order book of Rs 5,300 crore as of March 2010, which is 3.4 times its annual revenues. It's currently trading at a price-earning ratio of 15 times as compared to industry P/E of 24. Investors can buy this stock.
Ahluwalia Contracts
The stock of the company showed an impressive stock performance due to a continuous order flow. The company moved up in the value chain by venturing into build-operate-transfer (BOT) for urban infrastructure projects. It has reported a 35% growth in revenue on the back of execution of Commonwealth Games projects, which led to double its net profits to Rs 82 crore for FY10. It had an order book of Rs 5,300 crore as of March 2010, which is 3.4 times its annual revenues. It's currently trading at a price-earning ratio of 15 times as compared to industry P/E of 24. Investors can buy this stock.
Return 7.8x Stock Price 208 PE 15.1 Market Cap 1310.2cr
McNally Bharat
The return of over 800% since March 2009 is due to the back of improving financial and continued thrust on its business segments. The company recorded nearly 90% growth in profits during the financial year 2010 although the growth has dipped sharply to 16% in the quarter ended June 2010, with a sharp moderation in sales growth also. At current price to earning of 22 times, the stock looks somewhat expensive. Investors may wait for a while to see whether the company is able to accelerate its growth in the next few quarters before taking exposure in the stock.
McNally Bharat
The return of over 800% since March 2009 is due to the back of improving financial and continued thrust on its business segments. The company recorded nearly 90% growth in profits during the financial year 2010 although the growth has dipped sharply to 16% in the quarter ended June 2010, with a sharp moderation in sales growth also. At current price to earning of 22 times, the stock looks somewhat expensive. Investors may wait for a while to see whether the company is able to accelerate its growth in the next few quarters before taking exposure in the stock.
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