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Thanks a lot for your trust and encouraging replies which makes me go in search for great companies with good fundamentals and a great future.
I have come with my 4th recommendation and hope u love the ride.
Please read my message fully. I have spent day and night in analysing and getting info from the company .This stock has passed to through so many testing paths and has proved successful. Its a great company to be in.
Sujana is emerging as South Indias largest manufacturer of value-added steel products conforming to global standards.
Sujana Metal Products Limited (SMPL), incorporated in 2000, is the new-age company of the group and comprises four divisions:
>>Towers manufacturing,
>>Structural Steels,
>>TMT Bars and
>>International Trade.
Two trend-setting products from SMPL include Galvanised Towers and >>TMT, which have placed this company as the leaders in South India. They have a significant presence in other markets.
>>SMPL also manufactures a wide range of construction steel products that can be customized to user needs. SMPL is also envisaging the introduction of value-added products like high voltage towers (above the 400KVA currently manufactured).
The Trading Division of the company improves bottom-line and enhances the range offered to customers. telecom and power sector applications.
"Sujana's improvement continues.........."
>>In continuation of how Sujana's products are reputed for strength and specification-adherence,the company has recorded lower than 0.4% rejections and less than 1% complaints across xx,xxx tonnes dispatched from the ISO certified facility in the last quarter. This is due to efficient operational management systems for continuous improvement instituted for the ISO 9001:2000 process, which were duly certified by Det Norske Veritas.."
>> In keeping with Sujana's explosive growth, they are exploring options with view to enter export markets like Sri Lanka and other South East Asian countries. As a first step, and keeping in mind backward integration, an ingot/billet manufacturing facility using mild steel scrap is planned in the Middle East .
>>The Bollaram unit of Sujana Metal Products Limited, was awarded ISO 9001:2000 certification last month for manufacture and supply of structural and alloy steel sections.
Scope for Expansion
>> To meet the growing demand requirements of the domestic and export markets, the company proposes to increase the manufacturing capacities by way of consolidation and integration of the existing steel businesses of group companies and also through fresh investments into various value added steel product segments.
>> To capture a significant share of the tower market, the company proposes to increase the capacities of our tower making division at Hyderabad from 28,400 TPA to over 1,00,000 TPA.
>>Currently, we have the capacity to manufacture 55,000 MT of Structural steel. With increasing demand for it, it is proposed to modify the mill and also increase the capacities to 70,000 MT. After this exercise, the structural mill will be in a position to manufacture larger sizes of channels and angles required by the Towers Division. Presently the structural mill is meeting 40% of the steel requirement of the Towers Division; after the expansion/ modification, the structural mill will be in a position to meet 80% of the steel requirement of the expanded capacity of the Towers Division.
Global demand
>>The global steel market was exceptionally buoyant with a jump in steel consumption by 8.8%.
--->>> This growth was fuelled by an increased consumption of 22.5% last year in China .
>>Global steel prices are expected to remain strong in the near future on strong demand from the US Global steel prices are expected
to remain strong in the near future on strong demand from the US , Europe and Japanese markets coupled with the growth in the Chinese and other Asian economies.
>>According to International Iron and Steel Institute (IISI), the global demand for finished steel products would exceed one billion MT during 2007-08. The total world demand for steel is estimated to grow by 4.5% in 2008. The value of steel production during the last 5 years had experienced a compounded growth rate of 16%.
Thus i am done with profile and history of the company
Now its for the fundamentals to join the party
>>>> Lets go party tonight. <<<<
CMP 42.00, and it is a stock with an average 10 day volume of 9,50,000
Starting with the shareholding pattern
Promoters
Indian 29.49%
FII 44.37%
--------
Total 73.86%
Institutional Investors, Other
Private bodies, banks
and Mutual funds 08.92%
General Public 17.22%
---------
Total Shareholding 100.00%
>>The promoters hold a great chunk of the total shares and this clearly states the promoter interest in this company.
>>Great improvement shown in this company is due to the great interest the promoters have on this company and the percentage of holding by foreign promoters is getting increased year on year.
>> The holding of some portion of the companies capital by banks gives a great confidence regarding the stability and the prospects of the company
>> Despite the increase in the no. of shares of the company, the earnings per share has increased.
>> The sales of the company has increased from 726cr to 858cr which marks a growth of 18% whereas the industrial growth has been only 8.5%.
>> This company has surpassed the benchmark growth by more than 100% which is a great sign for the company.
>> The EPS of the company is at a staggering Rs.8.66 in FY06-07 compared to Rs.3.63 in FY 05-06 and the EPS has grown by more than 220% from the previous quarter. improvement is seen qoq.
>>As per the fundamental analysis, the book value of the company is Rs.68.61 and the CMP is Rs.42 and this clearly says that the stock is cureently underpriced and has a long way to go from this point.
A minimum increase till the book value is certain and inevitable and to defend the future increase technically,
The P/E Ratio of this company is 4.85 against an industrial average PE of 19 which 14.15.
If the company had been valued properly by the public this should have reached 152 (ie) P/E=19 Price = 19*8=152. It is assumed that the eps remains constant and the improvement in the company is going to increase the EPS and not decrease it.
If we expect a PE of atleast 10 we should get an 100% appreciation from the current price which is really achievable.
Buy, hold and Enjoy.
I expect this reco to be a real booster to my trustworthiness among members of traderji.
You can Continue to hold SAH Petroleum,SAPL and Pennar Industries as there is a great path ahead of them.
let our wealth grow.
let us enjoy the profits.
its WE and NOT me.
Thank you
Thanks a lot for your trust and encouraging replies which makes me go in search for great companies with good fundamentals and a great future.
I have come with my 4th recommendation and hope u love the ride.
Please read my message fully. I have spent day and night in analysing and getting info from the company .This stock has passed to through so many testing paths and has proved successful. Its a great company to be in.
Sujana is emerging as South Indias largest manufacturer of value-added steel products conforming to global standards.
Sujana Metal Products Limited (SMPL), incorporated in 2000, is the new-age company of the group and comprises four divisions:
>>Towers manufacturing,
>>Structural Steels,
>>TMT Bars and
>>International Trade.
Two trend-setting products from SMPL include Galvanised Towers and >>TMT, which have placed this company as the leaders in South India. They have a significant presence in other markets.
>>SMPL also manufactures a wide range of construction steel products that can be customized to user needs. SMPL is also envisaging the introduction of value-added products like high voltage towers (above the 400KVA currently manufactured).
The Trading Division of the company improves bottom-line and enhances the range offered to customers. telecom and power sector applications.
"Sujana's improvement continues.........."
>>In continuation of how Sujana's products are reputed for strength and specification-adherence,the company has recorded lower than 0.4% rejections and less than 1% complaints across xx,xxx tonnes dispatched from the ISO certified facility in the last quarter. This is due to efficient operational management systems for continuous improvement instituted for the ISO 9001:2000 process, which were duly certified by Det Norske Veritas.."
>> In keeping with Sujana's explosive growth, they are exploring options with view to enter export markets like Sri Lanka and other South East Asian countries. As a first step, and keeping in mind backward integration, an ingot/billet manufacturing facility using mild steel scrap is planned in the Middle East .
>>The Bollaram unit of Sujana Metal Products Limited, was awarded ISO 9001:2000 certification last month for manufacture and supply of structural and alloy steel sections.
Scope for Expansion
>> To meet the growing demand requirements of the domestic and export markets, the company proposes to increase the manufacturing capacities by way of consolidation and integration of the existing steel businesses of group companies and also through fresh investments into various value added steel product segments.
>> To capture a significant share of the tower market, the company proposes to increase the capacities of our tower making division at Hyderabad from 28,400 TPA to over 1,00,000 TPA.
>>Currently, we have the capacity to manufacture 55,000 MT of Structural steel. With increasing demand for it, it is proposed to modify the mill and also increase the capacities to 70,000 MT. After this exercise, the structural mill will be in a position to manufacture larger sizes of channels and angles required by the Towers Division. Presently the structural mill is meeting 40% of the steel requirement of the Towers Division; after the expansion/ modification, the structural mill will be in a position to meet 80% of the steel requirement of the expanded capacity of the Towers Division.
Global demand
>>The global steel market was exceptionally buoyant with a jump in steel consumption by 8.8%.
--->>> This growth was fuelled by an increased consumption of 22.5% last year in China .
>>Global steel prices are expected to remain strong in the near future on strong demand from the US Global steel prices are expected
to remain strong in the near future on strong demand from the US , Europe and Japanese markets coupled with the growth in the Chinese and other Asian economies.
>>According to International Iron and Steel Institute (IISI), the global demand for finished steel products would exceed one billion MT during 2007-08. The total world demand for steel is estimated to grow by 4.5% in 2008. The value of steel production during the last 5 years had experienced a compounded growth rate of 16%.
Thus i am done with profile and history of the company
Now its for the fundamentals to join the party
>>>> Lets go party tonight. <<<<
CMP 42.00, and it is a stock with an average 10 day volume of 9,50,000
Starting with the shareholding pattern
Promoters
Indian 29.49%
FII 44.37%
--------
Total 73.86%
Institutional Investors, Other
Private bodies, banks
and Mutual funds 08.92%
General Public 17.22%
---------
Total Shareholding 100.00%
>>The promoters hold a great chunk of the total shares and this clearly states the promoter interest in this company.
>>Great improvement shown in this company is due to the great interest the promoters have on this company and the percentage of holding by foreign promoters is getting increased year on year.
>> The holding of some portion of the companies capital by banks gives a great confidence regarding the stability and the prospects of the company
>> Despite the increase in the no. of shares of the company, the earnings per share has increased.
>> The sales of the company has increased from 726cr to 858cr which marks a growth of 18% whereas the industrial growth has been only 8.5%.
>> This company has surpassed the benchmark growth by more than 100% which is a great sign for the company.
>> The EPS of the company is at a staggering Rs.8.66 in FY06-07 compared to Rs.3.63 in FY 05-06 and the EPS has grown by more than 220% from the previous quarter. improvement is seen qoq.
>>As per the fundamental analysis, the book value of the company is Rs.68.61 and the CMP is Rs.42 and this clearly says that the stock is cureently underpriced and has a long way to go from this point.
A minimum increase till the book value is certain and inevitable and to defend the future increase technically,
The P/E Ratio of this company is 4.85 against an industrial average PE of 19 which 14.15.
If the company had been valued properly by the public this should have reached 152 (ie) P/E=19 Price = 19*8=152. It is assumed that the eps remains constant and the improvement in the company is going to increase the EPS and not decrease it.
If we expect a PE of atleast 10 we should get an 100% appreciation from the current price which is really achievable.
Buy, hold and Enjoy.
I expect this reco to be a real booster to my trustworthiness among members of traderji.
You can Continue to hold SAH Petroleum,SAPL and Pennar Industries as there is a great path ahead of them.
let our wealth grow.
let us enjoy the profits.
its WE and NOT me.
Thank you
