Lloyd Electric (Rs.50.60) is a leading manufacturer of heat exchanger coils serving the Heating, Ventilation, Airconditioning and Refrigeration (HVAC & R) Industry. The company is an original equipment manufacturer (OEM) supplier to AC manufacturers and provides customized AC solutions to institutional clients like the Railways and Defence. Lloyd has further expanded in the transport segment and has developed new models.
For the full year FY12, net profit stood at Rs.35.69 crore as against Rs.36.06 crore in FY11. Sales rose 15.33% in FY12 to Rs.902.17 crore from Rs.782.28 crore in FY11. For Q1FY13, it has reported a sales turnover of Rs.311.97 crore with net profit of Rs.15.04 as against the sales turnover of Rs.252.41 crore with net profit of Rs.10.91 crore in Q1FY12.
Seeing to the difficult business sentiment, the company has performed better compared to competitors like Mirc
Electronics, Hitachi home etc. the stock likely to get rerated, because of its consistent performance.
The book value of the share is Rs.151 but the stock is trading at almost 1/3rd of the book value. Investors can accumulate this stock on dips as valuation is cheap compared to companies like Blue Star & Hitachi Home.
* Astra Microwave Products (Rs.43) reported sales of Rs.210 crore in FY12, which is likely to move up to Rs.300 crore in the current year. Company has orders in hand worth Rs.940 crore compared to Rs.766 crore a few months back of this, Rs.450 crore is for exports mainly to Israel.
The outstanding order position as of 26 April 2012 was as follows: Most of these orders are executable in the next 18 to 24 months period. In Q1FY13, dispatches were low but likely to improve from Q2. Company
has decent ROCE of 30%. It is almost debt-free getting good advance against orders. There is promoter buying from the market in small quantities over the last few weeks. Risk factors: 1) Company's main source of revenue is the Defence market more particularly the strategic stream of Defence. Most of these projects
are initiated, designed and developed by DRDO labs and driven by government, policies and priorities. Although it can project and complete the product development in the time lines indicated, conversion of that to recognizable quantum of orders lies mainly on Government decisions. This results in an uneven and skewed pattern of sales, which is beyond the control of the company. 2) Promoter holding is low.
* Karma Energy (Rs.11.10) is into power generation from renewable energy sources primarily wind and small hydel. The company invests in projects directly or invests in equities of Special Purpose Companies (SPCs), which are into development of renewable energy projects. Most such SPCs are its subsidiaries. At present, the company has aggregate capacity of its installed wind farms is about 30 MW and that of hydel power is 3.5MW. The book value of its share is Rs.37 and with an EPS of Rs.2, it is trading at Rs.11.5, which is cum 5% dividend on the face value of Rs.10 per share. Investors can safely accumulate this stock on dips for good dividends and decent long term growth as its market cap is just Rs.12.87 crore.
* Wim Plast (Rs.273) is a company belonging to the ‘Cello’ group. Valuation of the company is attractive as the share book value is Rs.170. With an EPS of Rs.37, the stock is trading at P/E multiple of 7.4. Investors can continue to hold or add on dips for higher targets.
* Butterfly Gandhimathi Appliances (Rs.328.95) is hopeful of orders worth Rs.400 crore from a bid of around Rs.1300 crore from the Tamil Nadu Government. From its Rs.40 crore on recent preferential issue at Rs.398
premium, the company has repaid its high cost loan of Rs.30 crore. It will use Rs.40 crore on capex and Rs.30
crore for working capital requirement. This will reduce its interest burden sharply. The stock has come down
to current levels from a high of Rs.420. Investors who sold at higher levels can now accumulate on dips.
* Since KCP Ltd.’s (Rs.34.65) cement manufacturing and marketing is south based, where price realisation
is good, the benefit of increased capacity will accrue in the current year. Investors can accumulate this stock in
the core portfolio. Among stocks scheduled to delist BOC looks good. Investors can keep a watch to add on dips. Bayer Crop Science is another good stock worth a watch and to add on dips.
* Investors can book partial profits in Andhra Sugar (Rs.151.05) and switch to KCP Sugar (Rs.19.3).
* RS Software (Rs.143.45) stock is very firm at Rs.143. Investors can continue to hold the same for higher targets.
* Kesar Terminals (Rs.64.15) is a consistent performer. Its outlook is encouraging as the project for setting up a
'Composite Logistics Hub' at Pawarkheda in its subsidiary Kesar Multimodal Logistics Ltd. is likely to boost valuation in the long run. Its current market cap is just Rs.35 crore and the stock is cum 25% dividend. Investors can accumulate this stock on dips for decent long-term growth
* Stocks planning to delist are again in action. Investors can continue to hold BOC, Disa, Oracle, A P Paper etc.
For the full year FY12, net profit stood at Rs.35.69 crore as against Rs.36.06 crore in FY11. Sales rose 15.33% in FY12 to Rs.902.17 crore from Rs.782.28 crore in FY11. For Q1FY13, it has reported a sales turnover of Rs.311.97 crore with net profit of Rs.15.04 as against the sales turnover of Rs.252.41 crore with net profit of Rs.10.91 crore in Q1FY12.
Seeing to the difficult business sentiment, the company has performed better compared to competitors like Mirc
Electronics, Hitachi home etc. the stock likely to get rerated, because of its consistent performance.
The book value of the share is Rs.151 but the stock is trading at almost 1/3rd of the book value. Investors can accumulate this stock on dips as valuation is cheap compared to companies like Blue Star & Hitachi Home.
* Astra Microwave Products (Rs.43) reported sales of Rs.210 crore in FY12, which is likely to move up to Rs.300 crore in the current year. Company has orders in hand worth Rs.940 crore compared to Rs.766 crore a few months back of this, Rs.450 crore is for exports mainly to Israel.
The outstanding order position as of 26 April 2012 was as follows: Most of these orders are executable in the next 18 to 24 months period. In Q1FY13, dispatches were low but likely to improve from Q2. Company
has decent ROCE of 30%. It is almost debt-free getting good advance against orders. There is promoter buying from the market in small quantities over the last few weeks. Risk factors: 1) Company's main source of revenue is the Defence market more particularly the strategic stream of Defence. Most of these projects
are initiated, designed and developed by DRDO labs and driven by government, policies and priorities. Although it can project and complete the product development in the time lines indicated, conversion of that to recognizable quantum of orders lies mainly on Government decisions. This results in an uneven and skewed pattern of sales, which is beyond the control of the company. 2) Promoter holding is low.
* Karma Energy (Rs.11.10) is into power generation from renewable energy sources primarily wind and small hydel. The company invests in projects directly or invests in equities of Special Purpose Companies (SPCs), which are into development of renewable energy projects. Most such SPCs are its subsidiaries. At present, the company has aggregate capacity of its installed wind farms is about 30 MW and that of hydel power is 3.5MW. The book value of its share is Rs.37 and with an EPS of Rs.2, it is trading at Rs.11.5, which is cum 5% dividend on the face value of Rs.10 per share. Investors can safely accumulate this stock on dips for good dividends and decent long term growth as its market cap is just Rs.12.87 crore.
* Wim Plast (Rs.273) is a company belonging to the ‘Cello’ group. Valuation of the company is attractive as the share book value is Rs.170. With an EPS of Rs.37, the stock is trading at P/E multiple of 7.4. Investors can continue to hold or add on dips for higher targets.
* Butterfly Gandhimathi Appliances (Rs.328.95) is hopeful of orders worth Rs.400 crore from a bid of around Rs.1300 crore from the Tamil Nadu Government. From its Rs.40 crore on recent preferential issue at Rs.398
premium, the company has repaid its high cost loan of Rs.30 crore. It will use Rs.40 crore on capex and Rs.30
crore for working capital requirement. This will reduce its interest burden sharply. The stock has come down
to current levels from a high of Rs.420. Investors who sold at higher levels can now accumulate on dips.
* Since KCP Ltd.’s (Rs.34.65) cement manufacturing and marketing is south based, where price realisation
is good, the benefit of increased capacity will accrue in the current year. Investors can accumulate this stock in
the core portfolio. Among stocks scheduled to delist BOC looks good. Investors can keep a watch to add on dips. Bayer Crop Science is another good stock worth a watch and to add on dips.
* Investors can book partial profits in Andhra Sugar (Rs.151.05) and switch to KCP Sugar (Rs.19.3).
* RS Software (Rs.143.45) stock is very firm at Rs.143. Investors can continue to hold the same for higher targets.
* Kesar Terminals (Rs.64.15) is a consistent performer. Its outlook is encouraging as the project for setting up a
'Composite Logistics Hub' at Pawarkheda in its subsidiary Kesar Multimodal Logistics Ltd. is likely to boost valuation in the long run. Its current market cap is just Rs.35 crore and the stock is cum 25% dividend. Investors can accumulate this stock on dips for decent long-term growth
* Stocks planning to delist are again in action. Investors can continue to hold BOC, Disa, Oracle, A P Paper etc.
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