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/-