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Sunday, August 22, 2010

APM INDUSTRIES - BUY 


APM INDUSTRIES is a Rajastan base Synthetic blended
yarn manufacturing company  with a capacity of 49280
Spindles . Company is performing well for the past
many years . Recently company has initiated various
steps to improve its capacity utilization and cutting
costs which is expected to augur well for the company
to reap better financials in near future. At a time of
re-rating in textile sector stocks are going on ,
one may add in small quantity for decent return in
medium term. For the full year ended APM posted a
turnover of Rs.196 Cr a net profit of Rs.6.6 Cr.
On an equity base of 4.32 Cr. ,EPS is around Rs.15/- .
For the June qtr ended 3 months ,Company posted a
turnover of Rs.54 Cr v/s Rs.44 Cr and a net profit
of Rs.3.16 Cr v/s Rs.1 Cr .EPS for three month is
Rs.7.3 v/s Rs.2.5/- on FV 10 Share . Company’s corporate governance
quality is a bit concerning factor and limiting an
aggressive BUY call .So take limited exposure at
current market price of Rs.69/-

Posted by VALUEPICK at 2:09 PM
Labels: , ,

15 comments:

  1. Dear Valuepick sir,

    I wanted to know briefly about corporate governance for this company what makes them bad ?. As u given enough details on management how they cheat amd here i want to know more about corp governance here in this case.

    Reply will be appreciated :).
    ReplyDelete
  2. Dear Mahesh

    By definition C G is the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.

    I don't think they are not transparent enough to minority share holders (I am not saying --it is horrible)in certain matters.I invite your attention to the suspension of a group company due to penal reasons from BSE
    ReplyDelete
  3. Dear Valuepick sir,

    Thank you so much for your reply. I liked last line drawing my attention :).

    Thats enough :).
    ReplyDelete
  4. SIR,
    WHAT ABOUT THE RECOS. WHICH ARE GIVING NEGATIVE RETURNS @ THIS HIGH OF MARKET?
    THERE ARE SO MANY OF THEM, IF U AGREE.
    PLEASE TAKE CARE TO GIVE UPDATE ON THEM ALSO.
    ReplyDelete
  5. This comment has been removed by the author.
    ReplyDelete
  6. Dear Friend

    I have recommended 104 scrips in the past as BUY ,out of this only 14 scrips are currently below recommended price .Can we define it as 'SO MANY' ,as mentioned by you ??.Out of these 14 scrips , everyone hits at least 10 % higher rate before coming down to current rate and some of them are later recommended to SELL. Only 5 scrips are below 10% of recommended price now .If you need further clarification on any specific scrip ,mail to me.
    ReplyDelete
  7. Please post result update of Govind rubber which has come out with excellect results after your recommendation. Thanks very much!
    ReplyDelete
  8. Sir,

    can i buy JKagri(331 at time of writing)at this level.

    thanks
    ReplyDelete
  9. Govid rubber posted good result and expecting to perform better in future - HOLD IT
    ReplyDelete
  10. Hi ValuePick,

    Can you please provide your views on national steel and agro with cmp 31
    he stock is trading at 4 P.E its FY10 earnings while at less than 3 P.E for its estimated FY11 earnings. Came out with superb set of nos. for june qtr which may act as trigger for the stock.
    The price is mouth watering, can you suggest one should accumulate it at this price, for multibagger retures. Thanks for your help
    ReplyDelete
  11. Dear Guru

    For very short term ,I am not bullish on steel sector.May but ,if ready to wait.
    ReplyDelete
  12. Hi Value Pick sir ,

    I would like to know about APM Industries .
    It has a outstanding of 40 Lakh shares I believe .Can you tell me how the networth of company became 100 crore after some Revaluation Reserve ?

    http://www.moneycontrol.com/financials/apmindustries/balance-sheet/APM

    Also dont think the company has been growing . What is ur take on the growth of the company .
    Are you recommending buy till the value gets corrected
    ReplyDelete
  13. I have mailed you regarding this , please put a mail if possible as I might forget to check comments sometimes . Thanks in advance .
    ReplyDelete
  14. I have started following your blog . Its a good one thanks .
    ReplyDelete
  15. What is your advise on APM industries for next few months?
    vasant.sohoni
    ReplyDelete

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