MULTIBAGGER STOCK RECOMMENDATION - CYBELE IND (Q-FLEX)

Cybele Ind. BSE Code : 531472       CMP :  Rs. 14.50

 Financial Performance   (Rs in crores )
                               Qtr. End.         Yr. End.
                               30-6-11           31-3-11
Total Income            5.23                 21.39
Net Profit                 2.44                 7.64
Equity                          --                  10.63
EPS (Rs.)                 2.44                 7.64
Promoter Holdings    72 % 

Formerly known as Q-Flex cables, this Chennai based company was engaged in production of electrical items. However, company was not doing well and incurring losses. Hence, factory was closed down. It led to 10 acre surplus land in Chennai. Now, development of this land in JV with Vijay Shanthi Builders has made big turnaround in its fortunes.Cybele had entered into an agreement with Vijay ShanthiBuilders for development of residential township on this 10 acre surplus land. VijayshanthiBuilders will bear all expenses for development/construction of township called PARK AVENUE. Cybele will be entitled to get 50% of total saleable area as its share. Construction of project has already started. One unlisted company engaged in production of cables has been merged with Cybele which has led to promoter stake increasing to nearly 72% For year ended March 2010, Cybele had achieved EPS of Rs 18.40 From real estate project, total revenues of Cybele should be more than Rs 70 crores in next 2 years time. It works out to nearly Rs 70 pe  share at PBT levels on enlarged equity. For quarter ended July 2011, Cybele has achieved income of 5.23 cr with Pat of 2.44 cr. In this quarter, revenues from real estate division stood at 3.35 cr and cable division contributed 1.90 crores. With profits pouring in from real estate division, performance of cable division should improve significantly in near future.
Although it is difficult to estimate (in fairly accurate manner) earnings of Cybele for current year and next year, yet Cybele should report EPS of AT LEAST Rs 12 in FY12 and EPS of more than Rs 20 in 2012-13
Current market cap is just Rs 15 crores. Buying recommended as scrip can be Rs 35 in next 9-15 months. A low-risk high reward opportunity.