Monday, May 17, 2010


I have recommended a  BUY on ITL INDUSTRIES Ltd  on 1 March 2010 ,when it was trading at Rs.54/-.Today it closed in upper circuit at Rs.76.9/-  ,which means almost 50% return in 2.5 months .Saturday  company declared excellent results .For the full year ended March 2010 company posted a net profit of Rs 5.2 Cr as against just 1.18 Cr posted in same period last year. Full year EPS is Rs16/- v/s Rs.3.6.Performance is really good and further upside seen .So, HOLD at current level and BUY on any decline .Company is expected to cross  its lifetime high in near future.

Old Report is reproducing below:

Monday, March 1, 2010


ITL Industries (BSE CODE 522183) is a small but rapidly growing company from Industrial Machinery sector. Company started its operations in 1986. In 1996 company entered a technical collaboration agreement with KASTO Maschinenfabrik GmbH Germany for manufacturing state-of-the-art High Speed Power Hacksawing Machines in India, with a buy back arrangement. In addition to its sales points across India, it has representative sales offices in US and Germany. Its product list includes Band Saw Machine, Circular sawing Machine,Tube and Pipe making machine,Blades,special purpose machines ..etc.
In the year 2004, ITL introduced India’s first indigenously designed and developed CNC Carbide Tip Circular Sawing Machine and displayed the same in EMO Show at Hannover, Germany in September 2005 & 2007 with very good global response. Today ITL offers wide range of Circular Sawing Machine for cutting ferrous and non-ferrous Bars, Sections, Profiles and Tubes. In a growing economy like India, there is large scope for company`s products.
ITL is located at Plot of approx. 4 Acres having covered area of about 108,000 square feet and additional land available for shed expansion approx. 44,000 square feet. To cater overseas requirements ITL has acquired additional land in Special Economic Zone and expects to start production by end of 2009. Company`s Customers include Steel Plants, Forging Industries, Defense Establishments, Railways Workshops, Bharat Heavy Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI and HINDALCO etc.
On a tiny equity base of just 3.25 crore ITL is expected to post an EPS of Rs15 + in the current fiscal. In the first nine month itself ITL posted an EPS of Rs10.12 which is almost three times than the last full year EPS of Rs.3.64.It also declared a dividend of 10%. Considering the growth of the company there is fair chances for good appreciation. ITL is trading at Rs.54 which is at a P/E multiple of less than 4 to the expected EPS of current year which is really a valuepick.


  1. valupick, i am an avid reader of ur blogs and probably share the same investment philosophy. now, that i see, someone else too interested in ITL, i guess i can ask you a few questions that i had in my mind about ITL. PBT has increased dramatically this year. any ideas why? is it something to do with low raw material cost ? also, the reserves and total assests of the company has not kept pace with the profit growth. Do you have idea of the order book of this company?

  2. Contribution from the trading of Hydraulics has increased in percentage terms.

  3. do you think this contribution could continue going ahead? basically i was trying to predict future earning growth. after all the price would be decided by future earning potential of the company.

  4. Hi, Thanks for sharing this useful information through this article. I own a website related to special purpose machines that might be useful for your visitors. Have a look!

  5. KOPRAN bse code 524280@42/= is a great turnaround story of 2010.Exactly the same happend with LUPIN when it was quoting at 62/= way back in 2002 and looking at the low price I bought the stock in huge quantity.Lupin is now trades at 1900+ ex 1:1 bonus.I feel same thing is happening here with KOPRAN and looks super multibagger from hereon.In fact,it is another LUPIN in making.Good opportunity to grab such stocks and held on for super duper profits.Cheers.

  6. Dear Mr.Tony

    Thanks for the info about your website



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