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bartronics latest result

Discuss bartronics latest result at the Equities within the Traderji.com - Discussion forum for Stocks Commodities & Forex; I am a new investor. Batronics (BSE code 532694) has increseed net profit from 53.38 ...


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  #1  
Old 1st May 2007, 05:58 PM
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Default bartronics latest result

I am a new investor.

Batronics (BSE code 532694) has increseed net profit from 53.38 million in 05-06 to 178.19 millions in 06-07 and EPS incsreased from 3.66 to 9.08

But the company annunced the increase of authroised sharehoding from 30 million to 40 million. how does it affect the trajaectory of this share's price in the coming six months to one year.
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Old 2nd May 2007, 03:10 PM
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Default Re: bartronics latest result

Authorised share capital is not the same as Issued share capital and as such has no effect on the EPS. However this often signals an intention on the part of the management to raise new funds through issue of shares (through maybe a private placement, preferential allotment or even a follow-up public offer). This, if & when it happens, will off-course be EPS dilutive but, given the rate of growth of earnings, even a 10-15% equity dilution should not be of much consequence.

This a very good proxy play on almost the entire retail sector (in the sense that the growth of the company is highly correlated to the growth of organized retail) and it has better valuations, even better operating margins, than many of the retail players themselves.

Regards,
Kalyan.
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Old 2nd May 2007, 03:21 PM
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Default Re: bartronics latest result

thank for your clear elucidation
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Old 3rd May 2007, 12:02 AM
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Default Re: bartronics latest result

Quote:
Originally Posted by venkat1926 View Post

But the company annunced the increase of authroised sharehoding from 30 million to 40 million. how does it affect the trajaectory of this share's price in the coming six months to one year.
Hi Venkat,
Some very valuable points are discussed in the undermentioned thread. Please go through it

http://www.traderji.com/fundamental-...e-capital.html
Regards
R. S. Iyer
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Old 3rd May 2007, 08:54 AM
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Default Re: bartronics latest result

thank you. I shall look into it.
venkat
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