Scripscan:Eon Electric Ltd
Code:532658
Cmp:80
Story:Eon elecric ltd is the new name of Indo asian fusegear.The company today announced it would buyback around 18 lakh shares at a price not exceeding 130rs.The same would be done through the open market route.Financially, the company is not in a great shape. Apart from the net profit in Q2FY11 which was on account of the Rs.314 crore it earned by selling off its profit making switchgear business to Legrand, it has a consistent loss making trackrecord in all quarters. That sell off is precisely what helped the company end FY11 with a net profit of Rs.263 crore v/s Rs.2.85 crore in FY10. This gave it an unbelievable EPS of Rs.159. The price is low despite the high EPS as obviously this is a one time inflated EPS. Plus it is now left with CFC and wire business, where the latter is only now turning the corner. The company earned rs.530 crore via Legrand and Rs.150 crore of that was used to pay off debt, which in current fiscal, might bring down its interest cost. Lighting and renewable energy are its new verticals and it hopes to do better in current fiscal.Only Q1FY12 numbers will be able to tell us if that is indeed true.The buyback would reduce the equity an therefore eventually the EPS would get a spike up.The buyback from open market also would protect the downside of the counter.At present prices its a hold.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Subscribe to:
Post Comments (Atom)
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
No comments:
Post a Comment