Saturday, September 24, 2011

FAIRFIELD ATLAS - A GROWING MNC ASSOCIATE






Many of the investors are interested to invest in MNC Companies mainly because of higher level of corporate governance and better professional business approach.But price of most  MNC stocks are ruling at higher level and  beyond reach of an average retail investor.Still there is some exceptions like Fairfield Atlas.Fairfield Atlas Ltd. is a subsidiary of U S based  Fairfield Manufacturing Co.Switzerland based Oerlikon Group is the ultimate parent of Fairfield. Automobile and Industrial Transmission Gear is  the main product of the company and it also producing planetary gear boxes and planetary sub-assemblies and input adapters.Its plants are located near Kolhapur in Maharastra.Fairfield  is a priority supplier to well known companies like M&M,John Deere, SAME, KAMCO, TAFE, TELCON ..etc . With the strong support of the parent ,Fairfield  is generating almost 60 % of its income through exports and  foreign companies like GKN,TMA..etc.are its customers.Even in a tough time in overseas markets , Fairfield is displaying satisfactory performance.Concentration in off road equipments like tractors and other agricultural machines ,heavy engineering equipments..etc  may be a reason for this out performance.In order to reduce the cost of production, parent company is now more interested to source products from India.This is visible in the latest financials of Fairfield Atlas.What catching our attention at this point of time is the good performance of the company at this particular time.This is really a tough time for any engineering company which is deriving  majority of Income from US market.But Fairfields performance is good even now and revival in overseas market will really help the company to perform even better.For the June  qtr company posted a turnover of Rs.50 Cr v/s Rs.34 Cr and a net profit of Rs.3.70 Cr v/s Rs.2.5 Cr In the last FY company posted a net profit of Rs.18 Cr on sale of Rs.163 Cr and the EPS were Rs.6.45. Foreign promoter is holding close to 84 % stake in this company. Considering the strong marketing and financial support of the parent company Fairfield is a good low priced  MNC stock to BUY for investors with long term view which is currently trading at Rs.69/-

11 comments :

  1. Financial prospects are quite good.But, will it be the delisting candidate in future?

    ReplyDelete
  2. Dear Sushma

    Chances are very low for a De listing ,See the below link for a clarification of the company in this matter.

    http://www.bseindia.com/stockinfo/anndet.aspx?newsid=f57616a2-d287-43ca-bb8d-b38f9b932955&param1=1



    Even if it happens , it is possible only with a reverse book building

    ReplyDelete
  3. dear value,

    pls take a deep look in mac charles, they are in hospitality business, bangalore le meridian owns this group, it seems to be good.

    Thanks,
    Sajan

    ReplyDelete
  4. dear valuepick sir,
    i am regularly following your posts here.

    i need your current review on few your previously recommended stocks.

    1.multibase
    2.pioneer investcorp
    3.vulcan
    4.shirpur gold.

    are these scrips good for accumulation during this downtrend?

    thanks
    senthil

    ReplyDelete
  5. Dear Senthil

    Financials of none of the mentioned companies worsened during this period. Consider the impact of current economic situation on each industries in which the above companies are working , should consider before taking a decision.

    ReplyDelete
  6. thank you valuepick ji
    regards
    senthil

    ReplyDelete
  7. Hi Valuepick,

    Do u track Southern Ispat and Enerfy. Currently this stock is trding at 52 week low. Do you think this stock a good value buy at these levels?

    ReplyDelete
  8. Hi Valuepick,
    Websol is currently trading below your recommended price. Can I look to buy it now or do you see any further downside in it?

    Thanks,
    Ashutosh

    ReplyDelete
  9. Dear Ashutosh

    No change in my past opinion, considering the overall volatility in market - buy in small lots

    ReplyDelete
  10. Not tracking Southern Ispat and Enerfy

    ReplyDelete
  11. ANY VIEWS ON HALDYN GLASS AT RS 14

    ReplyDelete

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