Saturday, July 30, 2011

SANCO TRANS - BUY





SANCO TRANS -  is a Chennai based company operating in Transportation and logistics space .Company operating two container freight stations, one in Chennai and the other in Thoothukudi. Its Chennai facility is the first  CFC started in private sector in India way back in 1989.Company is also handling Air cargo and warehousing operations.An area of 2 Laks Sqft is available for its warehousing service. Sanco is also in the space of hiring material handling equipments including various types of cranes,Tippers,trucks..etc.It is also doing customs clearance services and transport operations.Company is planning to expand its warehousing operations by creating additional space.Company has shown good growth in last financial year.Sanco's fortunes are directly linked with the growth in India's export/import growth which shows a positive sign in recent past.In last FY company posted a turnover of Rs.63 Cr and a net profit of Rs.8.30 Cr .On its tiny equity base of just 1.8 Cr EPS was Rs.46/-.In the first quarter of this FY , Sanco posted a turnover of Rs.17.5 Cr v/s Rs.12 Cr and a net profit of Rs.2 Cr v/s just 34 lakhs. First qtr  EPS is Rs.11.25 v/s Rs 2.At CMP of Rs.238/- it is trading at a P/E multiple of 5 on FY 2011 EPS. Logistics is a space where our country need much improvement and scope is large in this space. Sanco is a pioneer in this industry with deep knowledge in this space  and it is a one stop service point for exporters and importers.Considering the growth opportunities,experience of management and cheap valuation of stock - there is every chance for a re-rating in this scrip from current market price of Rs.238/-
Posted by VALUEPICK at 4:44 PM
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28 comments :

  1. kalyaniJuly 31, 2011 at 10:46 AM

    dear sir,

    in the year 2004 this scrip is quoting around 14rs and in the same way scrips like vip, symphony, hawkins rose multifold in few years. can we identify at present such scrips which are nearer to face value and having huge potential in coming years ? in that case even we if invest one thousand each in them it will give huge returns ! am i too greedy ?

    regards
    kalyani

    ReplyDelete
  2. VikasJuly 31, 2011 at 8:27 PM

    Hi Valuepick,

    What is your take on Selan Oil?Do you see it a multi bagger possibility?

    Regards,
    Vikas

    ReplyDelete
  3. greatearthAugust 1, 2011 at 11:24 AM

    Dear sir,

    Please try to post 5 mid cap stocks which they are paying high dividends and it will growth stock too

    ReplyDelete
  4. AmitAugust 1, 2011 at 12:49 PM

    Hi Value pick,

    What target do you forsee for this stock...Also your earlier recommendation, Ramky is trading around 320 levels. Can one enter at these levels or should one wait for some price correction to happen. Please advice.

    Amit

    ReplyDelete
  5. AnonymousAugust 1, 2011 at 3:47 PM

    Hello,
    What is your stand on ASM technologies now?
    Thanks
    Sakharam

    ReplyDelete
  6. PATIDARAugust 1, 2011 at 4:15 PM

    dear value pick

    really great stock. sure shot frm u after long time. i m very postive on transport sector. i also very positive on arshiya international and gateway distriparks.m i right?

    ReplyDelete
  7. sajanAugust 2, 2011 at 5:00 AM

    have you ever tracked kddl?, looks like another titan, they have around 30 swiss watch showrooms around the country in the brandname ethos and management seems to be good
    thanks,
    sajan

    ReplyDelete
  8. sajanAugust 2, 2011 at 5:05 AM

    do u track smruthi?, its the biggest manufacturer in the world for the diabetic generic medicine metformin and they have other genrics portfolio as well, management seems to be good, any wiew on this?

    ReplyDelete
  9. VALUEPICKAugust 2, 2011 at 5:40 AM

    Dear Kalyani

    It is not a journey in a day or two , many of the stocks we have discussed in past two years already appreciated more then 100 % . I have no formula to select ONLY such scrips

    ReplyDelete
  10. VALUEPICKAugust 2, 2011 at 5:43 AM

    Dear Vikas

    Selan is a good stock , but uncertainty is there because of government's changing policy as in the case of Cairn India. It is not good for any govt to take a double stand on policies at the time of starting a business and then start to earn something by companies operating in oil sector.

    ReplyDelete
  11. VALUEPICKAugust 2, 2011 at 5:44 AM

    Dear greatearth

    Not concentrating in dividend part now...sorry

    ReplyDelete
  12. VALUEPICKAugust 2, 2011 at 5:48 AM

    Dear Amit

    I am not a follower of technicals to predict the targets. My targets depends on company's future earnings and will keep till its growth ends.My recommendation on Ramky was @ 280 about two months back. At Rs.320/- it is only a HOLD for me

    ReplyDelete
  13. VALUEPICKAugust 2, 2011 at 5:50 AM

    Dear Sakharam

    Already recommended profit booking in ASM

    ReplyDelete
  14. VALUEPICKAugust 2, 2011 at 5:53 AM

    Dear Sajan

    KDDL is fully priced on current performance. But may move up in future if there is expansion in retail outlets and they turnaround without much delay.I am not expecting another 'TITAN' here but some appreciation is possible in long term

    ReplyDelete
  15. kalyaniAugust 2, 2011 at 9:12 AM

    dear sir,

    what is your view on tainwala chem which is holding 9 % equity in samsonite ?

    thanks

    ReplyDelete
  16. Praveen KavoorAugust 2, 2011 at 10:58 AM

    Dear sir
    accidentally i had come over your web site about a year ago I really appreciate your services Its really some great effort
    Whats your call on wellspun corp everything looks good there

    ReplyDelete
  17. ajitAugust 2, 2011 at 7:54 PM

    Dear Value pick,

    what is your say about banking sector?- as it is down these days.
    Also kindly post some worthy 52week-low pick ups for current times.

    ReplyDelete
  18. PATIDARAugust 3, 2011 at 2:11 PM

    dear value

    what do u think about Arshiya int. and Gateway distri.?

    PATIDAR

    ReplyDelete
  19. Hitesh ChauhanAugust 3, 2011 at 5:27 PM

    Sir

    What is your view on Prakash Industries. Logix Microsystems & Lakshmi enery & Foods
    is there any one have potential to maultibaggar. please reply

    Thanks,

    ReplyDelete
  20. VALUEPICKAugust 3, 2011 at 8:48 PM

    Dear Kalyani
    I am skeptical about the management of Tainwala Chem and not expecting any decision favoring its minority share holders with Samsonite stake.

    ReplyDelete
  21. VALUEPICKAugust 3, 2011 at 8:49 PM

    Dear Praveen

    Currently not tracking welspun corp , so not in a position to comment on it.

    ReplyDelete
  22. VALUEPICKAugust 3, 2011 at 8:52 PM

    Dear Ajit

    Short term pressure will continue in banking stocks , long term investors can hold and add on dips

    ReplyDelete
  23. VALUEPICKAugust 3, 2011 at 8:53 PM

    Dear Patidar

    Both are not bad

    ReplyDelete
  24. VALUEPICKAugust 3, 2011 at 8:54 PM

    Dear Hitesh

    Not tracking these stocks

    ReplyDelete
  25. AnonymousAugust 3, 2011 at 9:54 PM

    dear Valuepick ji,

    Any comments on HDO (Hindustan dorr limited) and MIC Elec

    ReplyDelete
  26. AnonymousAugust 27, 2011 at 7:46 PM

    Res VP
    Please recommend preference wise five scrips for long term investment from your list already recommended on this website by you and corrected considerably.

    ReplyDelete
  27. VALUEPICKAugust 28, 2011 at 6:27 AM

    1)Kaveri Seed Company

    2)AVT natural Products

    3)Camlin Fine Chemicals

    4)Gandhimathi Appliances

    5) EPC Industrie

    ReplyDelete
  28. AnonymousDecember 8, 2012 at 10:30 AM

    Hi value pick do you have any fresh view on SANCO TRANSPORT looks like an interesting company with such a small market cap and operating in 4 ports with a healthy balance sheet. Last 2 years have been soft but things have already started looking up any fresh views?

    ReplyDelete

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