Tuesday, February 15, 2011

Sunil Hitech...&....Lumax Ind.......Excellent results.....

Friends,
Sunil Hitech:
I know many readers were not sure about this Co.Some have even taken big stake after I gave the call and then it went down and down and they even asked me that whether it is still a hold or not?
The concerns were the office was raided by IT offcials etc and hence prima facie the management was not trustworthy and I remember very well that what my answer was.
I wrote that in India that is part and parcel of business where even Wipro office is seacrched.
I donno, but I was bullish on this stock due to their service and product line.
Moreover the Mcap was favouring sales which was also a positive point for me to give a call.
Sunil Hitech has come out with excellent nos for Dec qr with eps of 8 for Dec qr.That is an excellent results by any standard.

Lumax Ind:
Another stocks that has come out with excellent result is Lumax Ind.When I gave the call at Rs 95, the Co was making loss but still I went ahead and gave a buy call.
The Np of Lumax Ind has gone up from 2.65 last year to 6 cr this year and that is more then 100% jump in NP which gives an eps of 6.43 for Dec qr.
So as I wrote at that time when I gave a call of Lumax Ind that results will follow lateron which came out perfectly true and to my understanding.
I am still bulliish on both of the above stock.
There are other stocks as well which has given stupendous results and which I have given call in past  which I am not writing here as I want my readers to find them out and write me if they wants to or can silently start accumalating those stocks.

15 comments:

  1. Rajeevji - KNR have declared very poor numbers. Please provide your views.
    Thanks
    Sanjay

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  2. Hi Rajeev,

    Piccadilly AGro has come out with excellent results.....whats ur take on it????

    Thanks
    Amit

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  3. Amit,
    Piccadilly Agro, I do not track so no view

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  4. rajeev jee hbl is firing y do not know results 13 crore loss so i expected it to hit down circuit guide me as i am confused

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  5. Dr Sunil,
    That is the charm of stock market.One never knows what will go up with bad results and what will come down with good results.
    The unpredictibility of the market makes it more charming for people to invest in it.
    Looks like CG Igarishi takeover should materialize in near future.....that's all I can guess....
    But HBL though showed a loss is still fundamentally very very sound stock according to me.

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  6. Hello sir first I want to give you many thanks for your great work. I want to know is Visaka Industries is a good pick or not.

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  7. Dear Rajeev SIR, What is teh "Bear Cartel" which anil is talking about ?

    Reliance Infrastructure has sought a probe by the intelligence bureau into an alleged "bear cartel" that the company believes has been manipulating stocks of several prominent infrastructure companies over the past three months or so.

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  8. Dear Snehal,
    It is hard to guess which bear cartel AA is talking about.

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  9. Hi Rajeev,

    What is the average P/E for the textile sector companies? I was looking into your recommended Suryalakshmi Cotton Mills and its p/e is even event less than 4. Looks like it is available @ discount if we assume the industry average p/e of 10. Please share your thought.

    Thanks,
    Manish

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  10. Rajiv ji
    please send your view on FSL.i receive a report in my mailbox
    Barclays to drive Q3 revenue growth

    Stake sale: The probability of stake sale by ICICI Group along with two other large institutions – Temasek's Aranda Investments and Metavante Investments – has been an equity overhang on the stock. ICICI Group, Temasek and Metavante currently own 21.2%, 20.04 and 18.2% respectively in FSOL. Since the listing of FSOL, Temasek diluted its stake by a little over 2%. ICICI Group brought down its stake from 26.74% in March 2009 to 21.2% at present.

    FCCBs: FSOL currently has outstanding FCCBs of US$ 212.4 mn with maturity of Dec 2012. As the current stock price is much lower than the conversion price of Rs 92.3, we have assumed that the FCCBs will not be converted into equity. Hence, FSOL will need US$ 296 mn to repay these FCCBs in 2012. FSOL currently generates cash of US$ 40 mn every fiscal and it will have cash of US$ 75 mn by end-3QFY11E. This means that the company will have US$ 150 mn of cash on its books by Dec 2012. The management seems confident about refinancing the balance amount of ~US$ 150mn.

    Valuation: FSOL to achieve 2-3% QoQ revenue growth in constant currency. This would be largely led by revenue from the Barclays project, which kicked off last month. EBIT margins are likely to see an impact of 60-70 bps for the quarter as a result of ramp-up costs associated with the Barclays project and due to fewer working days.
    FCCBs as debt and our adjusted EPS estimates for FY11/12 are largely unchanged at Rs 2.15/Rs 2.92. We maintain our Outperformer rating on the stock.

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  11. Hi Rajeev,
    Other positive notes about Sunil Hitech are
    1)Book value is Rs.163(CMP Rs.104).
    2)Promoters have about 53% share holding.
    3)EPS and P/E are looking attractive.
    4)Healthy order book for next 2 years atleast.
    Barring management's bad reputation,financial numbers are sending positive signals.

    Anything else I need to look into?Please pinpoint if you get time.

    -Sambath.

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  12. One more point to be noted here is Sales for Sunil Hitech is Rs.728.44 crores for the year 2010.However market cap is Rs.128 cr.This is also an important reason to accumulate this stock.

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  13. Sambath,
    Sunil Hitech is a good Co according to me.....

    ReplyDelete