The recently concluded September quarter produced one of the best results for Corporate India. Growth in sales and profits was robust. Some of the noteworthy performers in my portfolio were:
1).Ankur Drugs
Sales: Rs.61.5 cr, up 77% y-o-y,
PAT: Rs.7 cr, up 133%,
P/E: 7.25 times.
2).Man Inds.
Sales: Rs.292.6 cr, 60.5%,
PAT: Rs.14.8cr, 85.7%,
P/E: 12.1 times
3).Subros
Sales: Rs.165.8 cr, 26.8%,
PAT: Rs.7.8 cr, 92.6%,
P/E: 10.6 times
4).Raj. Spg & Wvg Mills
Sales: Rs.235.8 cr, 15.6%,
PAT: Rs. 7.2 cr, 18%,
P/E: 9.7 times.
I expect these companies to sustain this performance over the next two quarters. My personal price targets for these are:
Ankur - Rs.180+ (buy price - 92)
Man Inds - Rs.275+ (buy price - 214)
Subros - Rs.300+ (buy price - 167)
Raj.Spg - Rs.170+ (buy price - 120)
I had recently written about SPL Industries. I bought this scrip at around Rs.42. But it has since slipped to Rs.33. Reason: One of the worst performances since the company got listed. Thus far it earned around Rs.3-4 crore per quarter during each of the last two years. However, the Sept'06 quarter turned out be exceptionally bad. Its profit declined by over 90% to a few lakhs. Not surprisingly, the stock has slipped by around 25% since I bought it. The 'cigar butt' really hit me tight on my butt :(
Subscribe to:
Post Comments (Atom)
2 comments:
"Not surprisingly, the stock has slipped by around 25% since I bought it. The 'cigar butt' really hit me tight on my butt :("
ROTFL !!
Ravi,
Don't be sad. Mark it up to "lessons learned" !!. BTW, from what i have read of Graham, you invest in such "cigar butt" companies only if you could buy enough stake and influence to force the management to unlock value. Since you did not, may be it was not a "cigar butt" investment after all.
Regards,
Prasanth
Prasanth:
You are right! Needs to be put on the "lessons learned" list. But, not so warly. I think I will wait for another quarter for this to be put into the above list. A quarter's performance is too short a period to take a call on a company's performance.
--
Ravi.
Post a Comment