Supreme Industries
Supreme Industries is one of India's leading plastic goods manufacturers that earlier used to trade at a discount to its peers. The company has undertaken capacity expansion projects across all its 19 units with increased emphasis on valueadded products with Rs 180 crore of capex. While the valuation of its core business appears reasonable at current levels, the company's real estate project in Andheri will be an added attraction for investors. The company, which spent nearly Rs 120 crore on it, aims to realise Rs 450 crore by selling major chunk of the property by June 2011. The company not only raised its dividends for year ended June 2010, but also announced a 1:5 share split. Investors can stay invested for further gains in the scrip.
Supreme Industries is one of India's leading plastic goods manufacturers that earlier used to trade at a discount to its peers. The company has undertaken capacity expansion projects across all its 19 units with increased emphasis on valueadded products with Rs 180 crore of capex. While the valuation of its core business appears reasonable at current levels, the company's real estate project in Andheri will be an added attraction for investors. The company, which spent nearly Rs 120 crore on it, aims to realise Rs 450 crore by selling major chunk of the property by June 2011. The company not only raised its dividends for year ended June 2010, but also announced a 1:5 share split. Investors can stay invested for further gains in the scrip.
Return 9.6x Stock Price 518.5 PE 12.7 Market Cap 11009cr
Sundaram Clayton
Its stock has shot up seven times since March 2009 owing to improved demand in the automobile segment. Despite flat growth for the FY10, the company doubled its profits on the back of improvement in efficiency with reduction in operational cost. For the June 2010 quarter, the company was able to record a 75% growth in topline with positive net earnings as compared to a loss a year ago. It is currently trading at a price-earning ratio of 40 times as compared to industry average P/E of 16, which makes the stock costly. So, investors can take a 'wait-andwatch' policy for this stock in the medium term and buy only if a correction happens in the stock.
Sundaram Clayton
Its stock has shot up seven times since March 2009 owing to improved demand in the automobile segment. Despite flat growth for the FY10, the company doubled its profits on the back of improvement in efficiency with reduction in operational cost. For the June 2010 quarter, the company was able to record a 75% growth in topline with positive net earnings as compared to a loss a year ago. It is currently trading at a price-earning ratio of 40 times as compared to industry average P/E of 16, which makes the stock costly. So, investors can take a 'wait-andwatch' policy for this stock in the medium term and buy only if a correction happens in the stock.
Return 7.5x Stock Price 219.5 PE 49.8 Market Cap 832.8cr
Phillips Carbon Black
With the global economic turmoil hitting the automobile industry hard, the global carbon black industry took a beating in 2008 and the first half of 2009. This impacted Phillips Carbon Black's (PCBL) market performance. However, the scenario has changed for better since then with the outlook of the auto sector improving. Growing demand for carbon black helped the company post a net profit of Rs 122.7 crore in FY10. PCBL is also expanding capacities. In view of expansion programmes of Indian tyre manufacturers and growing automobile sales, PCBL is likely to benefit well out of its capacity expansions. It looks reasonably valued at 5.6 times its annual earnings.
Phillips Carbon Black
With the global economic turmoil hitting the automobile industry hard, the global carbon black industry took a beating in 2008 and the first half of 2009. This impacted Phillips Carbon Black's (PCBL) market performance. However, the scenario has changed for better since then with the outlook of the auto sector improving. Growing demand for carbon black helped the company post a net profit of Rs 122.7 crore in FY10. PCBL is also expanding capacities. In view of expansion programmes of Indian tyre manufacturers and growing automobile sales, PCBL is likely to benefit well out of its capacity expansions. It looks reasonably valued at 5.6 times its annual earnings.
Return 8.8x Stock Price 218.8 PE 5.5 Market Cap 726.8cr
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1 comment:
Nice,You can invest in stocks yourself by buying individual Stocks & Shares or mutual funds.....
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