With a correction of more than 10% in NSE Nifty over the last two months from a high of 6338 on 5 November 2010 to 5624 on 17 January 2011 and more than 20% in BSE SMALL CAP index from a high of 11168 on 10 November 2010 to 8860 on 17 January 2011, there are fair amount of chances that some
investment opportunities![](http://www.assoc-amazon.com/e/ir?t=indvalinv-20&l=btl&camp=213689&creative=392969&o=1&a=0132447290)
will really be available. There is a big contradiction between the two set of companies since some large caps are still trading at a P/E multiple of 30-50 while some small caps are available just near their book value with a P/E of 4-10. Following is the list of some of those small caps:
Company | Current Market Price | Market Cap | TTM Profits | TTM P/E | Average Profits of last five years | P/E of five year average EPS |
Ador Welding | 184 | 250 | 28.85 | 8.67 | 30.6 | 9.4 |
Asahi Songwon | 74 | 91 | 15.99 | 5.69 | 7.5 | 12.14 |
Eldeco Housing | 153 | 30 | 9.22 | 3.25 | 5.9 | 5.07 |
GM Breweries | 106 | 99.2 | 16.59 | 5.98 | 9.14 | 10.85 |
Gandhi Special Tubes | 120 | 177 | 25.92 | 6.84 | 17.82 | 9.93 |
Premco Global | 25 | 7.7 | 1.53 | 5.03 | 0.88 | 8.75 |
WimPlast | 170 | 102 | 17.1 | 5.96 | 6.306 | 16.17 |
Dynemic Products | 25 | 28.32 | 7.02 | 4.04 | 2.75 | 10.31 |
Plastiblends | 170 | 110 | 13.66 | 8.05 | 12.77 | 8.61 |
And there are many more like Natural Capsules @51, Medicaps @65, Eimco Elecon @270, Garware Wall Ropes @72, VTM @160, Mac Charles @ 230, Mazda @ 110, SI Paper @ 47. Most of the companies I have mentioned have been profit-making
companies![](http://www.assoc-amazon.com/e/ir?t=indvalinv-20&l=btl&camp=213689&creative=392969&o=1&a=B0000DFZ5O)
and some are consistently giving dividends over the last 15 years and still Mr market is quite depressed about their future. None of these are burdened with high
debt![](http://www.assoc-amazon.com/e/ir?t=indvalinv-20&l=btl&camp=213689&creative=392969&o=1&a=0553382020)
that may affect their future profitability and existence. Are they really value traps?
1 comment:
I have covered a couple of stock mentioned here in my blog -
Gandhi Special Tubes - A buy for sure, although it hasn't moved much in the past 5 yrs inspite of exceedingly good results - http://kiraninvestsandlearns.wordpress.com/2011/01/04/stock-analysis-gandhi-special-tubes-gandhitube/
Mazda Ltd - Needless diversification, I'd likely stay away from the stock - http://kiraninvestsandlearns.wordpress.com/2010/12/19/stocks-analyzed-and-rejected/
Would love to hear your thoughts on these two.
I will check on the others you mentioned.
Post a Comment