BSE CODE-517224
CMP-19(18/9/2007)
RISK-Medium to high
HISTORY-started in 1986 as sujana domestic appliances mainly for manuafcturing ceiling fans. later diversified into other activities. later was renamed sujana universal industries in 2003. It hs sister concern called sujana metals which recently split into sujana metals and sujana towers.
AREA OF OPERATION -1.Appliances and bearings 2.casting 3.steel products(details at www.sujana.com).Recently they have announced foray into real estate development,the details of which are sketchy.
PROMOTERS STAKE-Is increasing steadily and is 22% at present as against 16.7% last june.Recently they have alloted themselves 40,00.000 shares at 2o.50 and also 49,00,000 lakh warrants t the same price. so their stake will go up further
FINANCIAL’S -company made a turnaround in 06-07.It has restructured most of its debts.Present EPS is around 5 and PE 4.(they follow JULY TO JUNE FINANCIAL CYCLE)
WHY BUY? -1.Its peers are trading at PE of round 10.There could be re-rating for this stock. 2.There seems to be some foray into real estate development,which could increase both the top and bottom line. 3.BCLL has aquired 3000000 shares last year at 35 and is still holding 4.during the last quarter several brokerage houses ,including religare(8,72,000) ,insight share brokers(11,80,000) which i think belongs to the sriram group are accumulating. 4.Mavi investments have picked up 11 lakh shares,also in the last quarter. 5,IT Has a contract with bajaj electricals to supply fan to them. 6.with impetus on rural electrification electric appliances especially fan sales will zoom.Sujana’s padmini brand of ans has band recall atleast in south india.
All in all investment can be considered in this scrip as the downside is limited and it could double in one year.However there is no saying when he upmove will start.Patience is the key
| ||||||||||||||||||||||||||||||||||||||||||||||||
No comments:
Post a Comment