The Insider - Excel Industries
(ET-online)
JUL 26 - JUL 31 1999
excelind.com
EXCEL Industries
EXCEL Industries has met with huge success in implementing its pioneering technology that converts waste into fertilisers. Couple of years back Excel Industries had invented technology for recycling waste into fertilisers. The company is now flooded with orders from domestic and foreign buyers wanting to purchase this technology, The Insider learns. Profitability is expected to jump as a consequence as margins are high. The company had a book value of Rs 150 per share and an EPS of Rs 20 per share for FY99. It has a paid up capital of Rs 10.91 crore but the little known stock features in Group A on BSE.
Excel is a leading manufacturer of agro chemicals with dominant position among phosphorus based pesticide manufacturers. It had sales of Rs 400 crore in FY99 and a net profit of Rs 22.76 crore. The company has reported a CAGR of over 12 per cent in the past five years. The Insider learns that the company is a good candidate for bonus this year.
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Nestle India
NESTLE India is expected to post a big jump in bottomline for the quarter ended June ‘99. The company has recorded a jump of more than 10 per cent in sales of relaunched Maggi during this period and margins too have gone up due to higher domestic sales. The company had also undertaken extraordinary write-offs last year which will not be required in the current year. Thus, the bottomline for the six months ended June will be substantially higher than the first half of the previous year.
Among leading FMCG stocks Nestle has remained subdued for a long time now. The Insider learns that the stock will now see increased investment interest as the company has focused on its core products and reduced expenditure resulting in much higher margins from the current year.
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Unsung hero - Govind Rubber
TYRE companies are in fancy on stock markets these days. Scrips of tyre manufacturing companies like Ceat and Apollo Tyres are hitting circuit filters every day. However market seems to have ignored Govind Rubber, a manufacturer of tyres and tubes for cycles, two wheelers and three wheelers. The scrip, which enjoys book vale of Rs 55 and an EPS of Rs 4.41, is quoted at merely Rs 19.
Belonging to the Siyaram Group, Govind Rubber recorded revenue of Rs 295 crore and net profit of Rs 3.39 crore in FY99. Tyre manufacturing companies are expected to do well following improvement in offtake of automobiles. Many HCV, LCV and car manufacturing companies have reported increase in offtake in recent months. Besides, two-wheeler industry, to which Govind Rubber caters is doing well, showing a steady growth. The scrip is being accumulated by a well known mutual fund.
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Keep a watch on this one -International Travel House
INTERNATIONAL Travel House (ITH), an ITC group company, is expected to improve its bottomline this year as hotel industry looks up. Meanwhile there is a buzz that ITC is exploring the possibility of shedding stake in the company, The Insider learns. Though there is no official word, sources say that the company has held talks with major domestic players like Cox & Kings, Thomas Cook, as well as some French multinational for considering possibility of the sale. If it goes through, shares of ITH could fetch a price much above the market rate as the company is a premium brand in the travel trade.
As a precursor to the move, ITC has already bought the ITH stake in Landbase, the property development subsidiary of the latter. ITH owned approximately 70 per cent of the Landbase equity for which it has received a huge premium. And this has also led to substantial cash infusion into its operations reducing interest costs. ITH is essentially into travel-related business and has a portfolio of big MNCs on its client lists. Watch this counter for action in near future. |
