I have recommended a BUY on Indag Rubber @ Rs.95/- on July 2,2011.( For old Posting Click HERE) .Today it closed at Rs.245/- after touching its life time high of Rs.258 ,an appreciation of about 150% in 14 months . Those with some risk appetite may still hold it .Softening of raw material price may positively affect its profit margins in current quarter.
Showing posts with label indag rubber. Show all posts
Showing posts with label indag rubber. Show all posts
Tuesday, 18 September 2012
Tuesday, 11 October 2011
I have recommended a BUY on Indag Rubber @ Rs.95 on July 2,2011. Company reported good numbers for the quarter ended September , where its turnover moved from Rs.36 Cr to Rs.54 Cr and net profit rose 136 %
to Rs.5.24 Cr from Rs.2.22 Cr . Six months EPS is Rs.17.25 v/s Rs.8. Today Indag closed at its all time high @ Rs.143.25 ( up 20%). Long term investors can still HOLD the same .Company also declared an interim dividend of 15%
For old posting , Click HERE
to Rs.5.24 Cr from Rs.2.22 Cr . Six months EPS is Rs.17.25 v/s Rs.8. Today Indag closed at its all time high @ Rs.143.25 ( up 20%). Long term investors can still HOLD the same .Company also declared an interim dividend of 15%
For old posting , Click HERE
Saturday, 2 July 2011
Indag Rubber is a Khemka Group company mainly engaged in the manufacturing of tread rubber for auto sector. It makes pre-cured tread rubber (PTR), rubber strip gum, universal spray cement and tyre envelops ..etc Company having two manufacturing units , one in Himachal Pradesh and other in Rajastan . Indag is the company which introduced cold retreading technology in India . Company's financials are strong with minimum debt and higher promoter stake. Last year company expanded its capacity at Himachal unit and current capacity from this unit alone is 1200 ton tread rubber and 1800 ton rubber gum. Cost of raw material was a big problem for this company in recent past . But the US decision to discontinue the easy money policy for the time being is expected to bring down commodity prices in near future. Natural rubber prices are showing some weakness and it it expected to show this trend in coming months .If this trend continuous , it will surely help Indag to improve its margins. For the financial year ended March 2011 , Company posted a turnover of Rs.150 Cr and a net profit of Rs.11 Cr.Full year EPS was Rs.20 . At CMP of Rs.95 , Indag is trading at a P/E multiple of just 4.75 which is a risk less bet at CMP . Keep watching the movement of the cost of raw materials closely.
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