Pennar Industries - A Gold Mine
- Thread starter kartik1987
- Start date
Pennar Industries Limited is a succesful turnaround story.
Following the rebound,
the BIFR let it off the hook in July 2007 in the light of its networth turning positive in the last fiscal.
>a Hyderabad based company,
>into the manufacture of cold rolled steel strips(CLSS) and cold rolled formed products(CRFP),
>has set itself stiff targets like touching the Rs.1000 Crore revenue by FY10 from 526.35 crore in FY07(annualized).
>IT is fairly undervalued at this point of time. Its market cap,which currently stands at 202Cr., gives a market cap to sales ratio of .38x on FY07 sales of Rs.526Cr.
> Multi location presence and manufacturing facilities are located in Andhra Pradesh, Chennai and Maharashtra.
>holds a land bank of 109 acres value of which is a staggering 170-180Cr. So substantial value to be unlocked for the investors if the company plans to use the land for the facilties in the future.
>The shift of focus from CRSS to CRFP ratio of 80:20 to CRSS to CRFP ratio of 50:50 has helped it acheive new markets in the field of automobile,white goods,electrical,road saety, engineering, packaging, bearings,pollution control and even railways, thereby de-risking its business rather than being dependant on few sectors.
>A New plant has been set up in chennai and commercial production on a limited scale has already started.
>On financial restructuring point,
">" The Company has raised 122.4cr. in FY06 for retiring some long term debt and the chennai plant expansion thru issue of debentures.
">" The dilution would lead to the improvement in the debt equity ratio of the company.
> PIL has been selected as a global source for Denmark FL SMIDTH and Belgium based hammon Research and Cotrell for the steel profiles used in steel profile precipitators,which is a good sign.
>The company is also entering into a new area of Pre-engineered buildings steel buildings where it feels there is a lot of potential.
>H1FY08, PIL topline increased 11 % to 274.93Cr. while its bottomline increased 25.54% to 15.43Cr.
>management expects to post net revenues of around 600cr. and with the margins expected to remain constant the net profits would be 33cr. At levels on fully diluted equity of Rs.63.15Cr.
>PIL generates a PE of just 8x, which is quite cheap and perfect time to grab for long term at a CMP of Rs.27.50.
please reply
Following the rebound,
the BIFR let it off the hook in July 2007 in the light of its networth turning positive in the last fiscal.
>a Hyderabad based company,
>into the manufacture of cold rolled steel strips(CLSS) and cold rolled formed products(CRFP),
>has set itself stiff targets like touching the Rs.1000 Crore revenue by FY10 from 526.35 crore in FY07(annualized).
>IT is fairly undervalued at this point of time. Its market cap,which currently stands at 202Cr., gives a market cap to sales ratio of .38x on FY07 sales of Rs.526Cr.
> Multi location presence and manufacturing facilities are located in Andhra Pradesh, Chennai and Maharashtra.
>holds a land bank of 109 acres value of which is a staggering 170-180Cr. So substantial value to be unlocked for the investors if the company plans to use the land for the facilties in the future.
>The shift of focus from CRSS to CRFP ratio of 80:20 to CRSS to CRFP ratio of 50:50 has helped it acheive new markets in the field of automobile,white goods,electrical,road saety, engineering, packaging, bearings,pollution control and even railways, thereby de-risking its business rather than being dependant on few sectors.
>A New plant has been set up in chennai and commercial production on a limited scale has already started.
>On financial restructuring point,
">" The Company has raised 122.4cr. in FY06 for retiring some long term debt and the chennai plant expansion thru issue of debentures.
">" The dilution would lead to the improvement in the debt equity ratio of the company.
> PIL has been selected as a global source for Denmark FL SMIDTH and Belgium based hammon Research and Cotrell for the steel profiles used in steel profile precipitators,which is a good sign.
>The company is also entering into a new area of Pre-engineered buildings steel buildings where it feels there is a lot of potential.
>H1FY08, PIL topline increased 11 % to 274.93Cr. while its bottomline increased 25.54% to 15.43Cr.
>management expects to post net revenues of around 600cr. and with the margins expected to remain constant the net profits would be 33cr. At levels on fully diluted equity of Rs.63.15Cr.
>PIL generates a PE of just 8x, which is quite cheap and perfect time to grab for long term at a CMP of Rs.27.50.
please reply
This stock has been performing really well and i dedicate the success of this particular reco to all the people who trust me and invested.
Thanks a lot for those who trust me. You with your motivation make me work more and more. thnx for the co operation.
Now people who have not entered can enter into
Sah Petroleum @ CMP 25.00
Pennar Ind. @ CMP 33.00
and
a New REco for this month SA Petro @ 27.50. It will start now.
Let the feast begin.
Thanks a lot for those who trust me. You with your motivation make me work more and more. thnx for the co operation.
Now people who have not entered can enter into
Sah Petroleum @ CMP 25.00
Pennar Ind. @ CMP 33.00
and
a New REco for this month SA Petro @ 27.50. It will start now.
Let the feast begin.
Its a great comeback from this particular stock and the target i feel that can be visualised is 70-80 in another 2 months time. please do get into this and exit if u want to, @Rs.80 and you can hold for it to move on to Rs.125 in aonther 5 months time. thats around 400% increase from current price.
let our wealth grow.
let us make more profits.
Its We and NEVER me.
let our wealth grow.
let us make more profits.
Its We and NEVER me.
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