NILE LTD - RESULT UPDATE

I have covered NILE Ltd in one of my old posting when it was @ Rs.115/- .( Read it  HERE) .Currently NILE is quoting around Rs.165/- .Company declared its full year numbers on Saturday.Backed by the surging prices of lead and lead alloys which is two of its major products,.company posted robust numbers this time .For the full year ended March 31.2011,NILE posted a turnover of Rs.300 Cr v/s 145 Cr and a net profit of Rs.7.17 Cr v/s Rs.3.24 Cr .Full year EPS is Rs.24/- .Company also declared a dividend of 20%

NILE LTD - WATCHOUT THE RESULT

I have covered NILE Ltd on March 7 th @Rs.115 /- Company is going to declare its last qtr and full year results on 8th May .Company has two divisions viz Glass lined equipment and Lead. Company is making Lead through re-cycling method.Last year company posted a loss of Rs.2  crore due to lower price of lead in international as well as local market.After the revival in lead prices , NILE has posted a profit of 4.34 Cr for the nine month period ended in Dec.2009..On an equity base of just 3 Cr ,nine month EPS is Rs.14.5.If there is no negative surprise from the glass lined division, NILE is expected to post strong results.Comparing to last year ,commencement of its new plant at Tirupathi with 20000 tonnes per annum  lead making capacity is also expected to boost its bottom line.Currently it is quoting at Rs.152.60. Keep an eye on it  and take decision according to the results to be published on Saturday.

NILE LTD - Aftermath of Takeover Attempt.

NILE is a Hyderabad based multi division company.It is in the field of Glass lined equipments,Pressure vessels and lead and lead alloys. In glass lined equipments sector company is competing with GMM Pfaudler and recently escaped from a hostile takeover attempt by GMM. Major chemical and pharma companies including Cydus,Cipla,Aarti,Atul ..etc are company’s customers in this segment. Now company is paying much attention to lead and lead alloy segment and commissioned a new plant at Thirupathi in last qtr. NILE is making lead through recycling method and Amar Raja Battery is the major customer of NILE in this segment. Now company is going to start commercial production in its new lead plant in Republic of Georgia which is a joint venture with a local company.

                                                     It has an equity capital of just 3 crore and promoters are holding 46 %. Recently main promoter is actively buying from open market to increase his stake. Due to sharp crash in lead prices company has posted a loss of 2.2 crore in FY 08-09,where it posted 6.5 crore profit in 07-08.Now lead prices improved sharply and due to this company posted an EPS of Rs.10/- in December qtr. Adding the small loss posted in first qtr company posted 9 month EPS of 14.47 and expected to continue good performance in last qtr too .Considering the company’s recent capacity addition and improvement in the price of it products due to the recovery in global economy, it is expected to post excellent results ahead and post an EPS around Rs.25/- for the full year .
                                                          Recently, in a verdict to settle the legal dispute between GMM Pfaudler, Andra Pradesh high court directed GMM to sell all the acquired shares of NILE (as part of its takeover attempt) in open market within a period of 48 months. Watching the counter of NILE, it is evident that someone is trying to keep the share price at lower level. This may be an attempt by the management of NILE to buy the shares at lower level when GMM started selling in the market Keep an eye on the bulk deal data and quarterly share holding pattern to enter into the scrip at appropriate time.Currently it is quoting  around Rs.115/-