DHP INDIA -BUY

DHP INDIA - Earlier this Kolkata based company was
engaged in Leasing and hire purchase business and later
ventured into the manufacturing of LPG  regulators, fittings
and assemblies. Now company stopped
its financial related activities and concentrating in this business.
Its manufacturing unit is located at Howrah in West Bengal with
an installed capacity of 1.5 million regulators per annum , from where
it producing propane, butane and LPG regulators, hose assemblies
and brass fittings .Recently company started its expansion project
to expand capacity by 50% which is funded through internal accruals.
Company’s products having big potential in a country like India with
huge population and less penetration in this segment.For the financial
year ended March 2010 company posted a turnover of Rs.18 Cr
and a net profit of Rs.2.3 Cr .On an equity base of  3 Cr ,company
posted an EPS of Rs.7.7 .Company also declared a dividend of 10% .
Expecting better performance from expanded capacity utilization one
can BUY at CMP of Rs.41/- for medium term