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1) Bharati Shipyard Ltd. Rs. 64/-: Company is one of the
leading shipyards in India and has been performing consistently
well. For 07-08, company had reported topline of 700 crs.
and PAT of 107 crs. On Equity of 27.56 crs., EPS was Rs. 39/-.
Stock is trading at 2.13 x FY08 EPS. Last year, its share
price had crossed Rs. 800/-. Subsequently, share price crashed
due to selling by FIIs and fears that company will face slowdown.
However, company continues to do well. For 9 months ended
Dec. '08, its topline is 722 crs. which is more than turnover
of entire 07-08 and PAT is 95 crs. For 08-09 it should report
EPS of Rs. 44/- which means stock is available at 1.45 x FY09E
EPS. Recently, company has confirmed that its Order Book is
full upto 2012, there are no order cancellations and only
some delay in payments. Finally, company is entitled for subsidy
upto Rs. 1100 crs. upto 2012 against delivery of the ships.
Metal prices have come down which is major R/M in ship making.
Going extremely cheap. Investment in this scrip should give
excellent appreciation.
2) ABG Shipyard Ltd. Rs. 90/-: For 07-08 company had achieved
topline of 967 crs. and PAT of 160 crs. On Equity of 50 crs.
EPS was Rs. 32/- and scrip is trading at 2.80 x FY08 EPS.
Last year share price had crossed Rs. 700 but subsequently
crashed due to various fears including slowdown and may be,
govt. subsidy will be discontinued. However, for 9 Months
ended Dec. '08, company has already achieved turnover of 1041
crs. and PAT of 119 crs., despite all time high metal prices.
Recently, company has clarified that there are no order cancellations
and order book is full upto 2013. Morever, company is entitled
for govt. subsidy of Rs. 1700 crs. upto 2013 against delivery
of ships. Lower metal prices will help company to maintain
profit margin. EPS for 08-09 should be 34/- which means stock
is available at 2.65 x FY09E EPS. Once Q4 results are out,
share price can flare up. In stable markets, this scrip can
give more than 50% appreciation.
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