Financials
The average ROCE of the company over the last five years has been 15.978% with average operating profit margin of 27.12%. The operating profit margin of around 22% in the last two years was the lowest in the last eleven years. The average net profit margin was 14.52% for the last five years which is much higher than most of the companies in India. The company is debt free with net current assets worth INR 70.93 crore out of which INR 52 crore are just in fixed deposits. The asset turnover ratio of the company decreased from 1.30 in FY01 to 1.15 in FY06 to 0.88 in FY10. The company always had a positive cash-flows over the last ten years but the average in the last five years is lower than what it was between FY01 to FY05.
The average total income of the company has risen from INR 35.59 crore betwen 2000-2002 to INR 50.50 crore between 2008-2010, i.e 4.47% compounded annually. The average net income has also risen to INR 7.49 crore in 2008-2010 from INR 4.63 crore in 2000-2002, i.e. 6.2% compounded annually. The company had one down year in profits in FY08 when the profits declined by 33%. Revenues too declined in FY08 by 10%.
Promoters
The company is a subsidiary company of a German company with promoter holding at 74.04%. The dividend payout ratio of the company has decreased from 30% in FY01 to less than 20% in FY10.
Mutual Fund Holding
No mutual fund schemes hold this share.
Valuations
The book value of the company is INR 217 and so at the current market price of INR 215, the company is trading just near its book value. If the net current assets of INR 71 crore is removed from the market capitalization, the company's market capitalization of INR 23 crore is less than 30% of what it earned in operating cash flow over the last ten years. The valuations are compelling to buy.
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1 comment:
Volumes are toooooo low. Unable to sell in bad circumstances.
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