Scripscan:Savita Oil Technologies Ltd
Code:523696
Cmp:590
Story:Savita Oil Technologies Limited engages in the manufacture and sale of petroleum products in India and internationally. The company’s products include transformer oils, liquid paraffins and white oils, lubricating oils/greases, and petroleum sulfonates and jellies. It also engages in the generation and sale of wind power.According to the company, its product ‘Savsol’ is likely to add 125cc plus engines.Fundamentally, the company reported robust earnings per share (EPS) of approximately Rs 75, backed by Rs 20 dividend which includes a special dividend as the company celeberated its 50th anniversary. Thus, it a lucrative bet with a long-term perspective.They produce sensible products, which are vulnerable to petroleum prices. Any fast movement in crude oil prices, say USD 20-30 plus minus from current levels, would have exposure to their raw material cost as well as their inventory carry over trade. However, on crude prices, it would either be positive or would be range-bound between USD 90 and USD 110 for Indian basket from next one-year perspective. I have a modest growth target for the company at 16% CAGR right from 2009, but they have beaten my estimate every time and this year also the company has posted a robust EPS of almost 30% higher than what I forecasted.So here is a company, which is going to do an EPS of close to Rs 83 on conservative side for next year. It will be available around Rs 590, giving Rs 20 dividend this year and I expect even Rs 50 dividend for next year, mean cash flow of Rs 35 from two years perspective. This can be bought with a longer-term view. However, one should monitor this counter from quarterly result perspective, and not take large positions.
Source:Fort broking.
Tuesday, July 12, 2011
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