Tuesday, May 18, 2010

KULKARNI POWER TOOLS Ltd - Powering Ahead


 
 
Kulkarni power tool is an established and well known brand in Electric
Power Tool Industry. This Kolhapur based company is established
in 1976.KPTL operating mainly in three
segments viz Power Tools,Blowers and control motors.
Its power tools are finding applications in Metal working,
wood working and general construction .Blowers are
used in Water, Effluent and Sewage treatment plants.
Its control motors are used in high voltage circuit breakers,
control panels etc.Earlier company was distributing
its products through third parties which severely affects
its margins .But from last year company itself started to
distribute its products which changes its fortunes.
Last financial year company posted a turnover
of Rs.61 Cr. and a net profit of just 2.7 Cr. .For the nine month
ended Dec qtr KPTL reports a sale of Rs.47 Cr
and a net profit of Rs.3.5 Cr and expected to end
this FY with a profit of Rs.5.5 Cr . On an equity base
of 1.7 Crore (Rs.5 FV shares) Company is
expected to post an EPS above Rs.15 /- .KPTL
is trading @ RS.83/- with
a P/E of 5.5 to the expected full year EPS. Considering
the prospects of the
industry KPTL is a decent BUY around Rs.75/-

4 comments :

  1. Sir,

    What is u r veiw on Aban Offshore to enter at CMP of Rs 723/=

    Thanks,
    Marcel

    ReplyDelete
  2. Sorry , not following any of the popular stocks currently.

    ReplyDelete
  3. Sir
    About Alpha Geo I have about 1000 shares Average price is Rs 500.Can i hold it for long term.

    ReplyDelete
  4. I have recommended Alphageo @ Rs.215/- and not at Rs.500/- and the time period also specifically mentioned.

    ReplyDelete

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