Sorab R Mody with technical, Marketing and financial
collaboration with US based CROLL-REYNOLDS.This US company
holds about 12% in Mazda. Company has two divisions
viz Engineering division and Food division.Under
the engineering division,company producing
various types of valves,steam jet thermo
compressors,Air jet ejectors,Evaporators
and Air pollution control equipments.Most of
these products finds applications in sectors
like ,refinery, power,petrochemical ,sugar ..etc .
Croll Raynolds using Mazda as a sourcing hub
to meet its international demand which helps
the company a lot and expected to strengthen
this relations going forward.
Company has another technical
collaboration with Germany based Kauer
Engineering for Turbine Bypass
Valves and Evaporators. Almost all sectors where
companies products are using, are coming out of
recession globally.This situation will certainly help
the company going forward.
Mazda also having a food division
in which company makes products likeInstant powder drink ,fruits jams,squash,
custad powder,baking powder ,food colour ..etc
under the brand name ‘BCOOL’.
Comapany is growing rapidly in this sector and expected
to grow 100% each in next few years even the base
is low at present. Company is now widening its
portfolio by launching Soya sauce, Tomato sauce,
Tomato ketchup and distilled vinegar..etc .
After a critical level achieved we can’t rule out
a de-merger of food division from the company to
unlock value for the share holders.
Even in a difficult situation like
last FY company posted a sale of Rs.80 crore
and a net profit of 9 crore. For the nine month
ended in Dec qtr company posted a sale of Rs.56 crore
and a NP of 7.67 crore. Normally company is making
substantial profit from last qtr.On this basis company
is expected to post an EPS more than Rs.30/-
in FY 2010, which was Rs.22/- in last year.
Company paid a dividend of 20% last year and expected
to pay more this time.Last year promoter actively
purchased shares from the open market which is also a
confidence booster. At CMP of Rs.98/- it is trading
at a P/E of just 3 on the expected full year EPS
which leaves ample scope for appreciation.
Hi,
ReplyDeleteDo u have a view on why is Mazda consistently getting so low valuations?
it seems to b pretty cheap..but it has been cheap for years together! :-(
Neeraj
Hi Neeraj
ReplyDeletewhat you said is correct .Its all time high is 236 touched in 2007 .Hope this will rewrite the history of low p/e going forward.Not so good PR,mainly with media and operators may be a reason.
Agreed..
ReplyDeleteanother reason could be Harshad Mehta overhang..there was Mazda Industries in which he was involved..perhaps investors get scared of the Mazda name..hehe..
Neeraj..
(P.S. Welcome to Phoenix..hope to know u better)
may be ,but that was another company named Mazda industries and leasing which is a vanished one and no relation with this one.
ReplyDeleteYes theres no relation to this one..
ReplyDeletei was saying that the mkt may wrongly be thinking that its the same group or sumthn..
Neeraj
Dear Sir,
ReplyDeleteWhat is your view on Concurrent Infra? Lots of people suggesting to invest in this stock.
Is it a good investment candidate? What is your suggestion. Please reply.
Manjunath
Bangalore
Dear Mr.manjunath
ReplyDeleteI am not strictly following this company,but in my opinion there is high risk in any company which is operating in too much diversified fields ,especially depending on the caliber of a single person rather than professionally managed.
Thank you sir.
ReplyDeletePls provide ur view on concurrent & octant
ReplyDelete