Scripscan:Lokesh Machines Ltd
Cmp:64
Traded in:Nse-bse
Story:Lokesh Machines Ltd. is engaged in the design, development and manufacture of custom built special purpose machines and general purpose CNC (computerized numerical controls) machines along with their components. Presently, it derives 70% revenue from machining division whereas rest 30% comes from auto component division.Company primarily caters to customers in the auto OEM, auto ancillaries and general engineering space. Hence it supplies mainly to Tata Motors, Bajaj Auto, Force Motors, Cummins, Bharat Forge, Kirloskar Oil Engines, Everest Kanto Cylinders etc with separate dedicated facilities for M&M and Ashok Leyland. Off late, it has also made a foray in the overseas markets with orders from M/s FPT Industries Spa-Italy, Honda Motorcycles-Japan and HOWA-Japan.Further, its technical partner Wenig Wemas-Germany has also placed initial order of 100 machines worth 20 cr.
For the latest June qtr, sales at 20.5 Crores and NetProfit at 3.1 Crores. To fund its growth plan company came out with an IPO at Rs.140 per share in April 2006 and raised Rs.42 cr. On listing day it hit a high of 300 Rs, whereas and currently it's available at 55% below its issue price. For FY09 it is expected to clock a turnover of 115 cr and PAT of 15.5cr which leads to an EPS of Rs. 13.5/- on equity of 11.80 cr. Scrip can easily appreciate to 125/-. Minimum PE of this industry 10/- maximum 30/- If we can calculate with minimum PE = 10 * 13.5 = 135/-.
One more Important news is Company having good Land Bank in HYDERABAD (Balanagar). This cost nearly 200 Crores. Equity 11 Crores. (1.1 Cores shares) Per shares its coming 200/- worth land. + 75/- Book Value + Original Value of share 125/- as per company performance.So Total Value of this company Share was nearly 300/-
Possitive Points for this stock for Up moving:
1)Company doing very good with EPS 13.5/- PE only 5; Avialable very cheep at 64/-
2)Book Value was 75/-
3)Company Having Good Land Bank at BalaNagar, Hyderabad. Worth of nearly 200 Crores. Per share Rs. 200/- worth land.
4)25% (Rs.2.50/-) per Share Dividend Declared for 2007 -2008.
5)Promoters Holding is good 58%
Conclusion:Enter current price at 64.Short term Target 125.Long Term Target.
Strong Fundamentals.Just Buy at 64/- get 100% to 300% Profit.
Btw:Its an operator call.I am no way related with it,neither the call nor the report has been prepared by me.The report maynot support my views.Buy/sell at your own risk.
Regards,
ARUN
I can be reached at:-arunanalyst@rediffmail.com
Sunday, August 24, 2008
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