YUKEN INDIA - BUY Even at current level

THIS SCRIP ONCE RECOMMENDED ON MARCH 2 ,2010@ Rs.140/-.Even at Current Price of Rs.160,it is an attractive BUY




YIL a Bangalore based company from hydraulic space, promoted by   Yuken Kogyo Company Ltd  Japan in 1976. Its products are well known in the Industry mainly due to its quality standards. YIL’s product line includes various type of pumps,valves and controllers. Demand of hydraulic products are highly correlated with the over all industrial growth of the economy and it is highly sensitive. Due to sluggish growth in last year company could manage just 1 crore profit in March 2009 full year which converted into an EPS of Rs.3.3 on its small equity of  3 crore. But things changed rapidly with the growth of economy in this year and YIL posted an EPS of Rs.Rs.12/- for the nine month itself which is a four fold rise even  from last full year. Interesting fact is that the peek time of demand for the product of YIL is last quarter and traditionally company posting  major profit from fourth qtr  itself. Considering this fact , YIL is expected to post an EPS close to  Rs.20/- for the full year compared with RS.3/- last year. A clean and share holder friendly management  makes it a riskless buy even at Rs.140/-(now @160/-)