Stock Recommendations- Ahamednagar Forgings & Shilpa Medicare
Ahamednagar Forgings
Ahamednagar forgings is the second largest manufacturer of forged automotive components, high tensile fasteners and cold forged parts in India. It is the subsidiary company of Amtek Auto. Company reported a sales turnover of near Rs 298 Cr in the third quarter FY 2012. It sales turn over in the third quarter FY 2011 was near Rs 218 Cr. About 40% increase can be seen in the sales turn over. Company reported a net profit of near Rs 29 Cr in the third quarter FY 2012. Its net profit in the third quarter FY 2011 was near Rs 28 Cr.
Market cap of the company is just Rs 670 Cr. Book value is Rs 169.17. Price/Book ratio is 1.08. P/E stands at 6. It is clearly below the industry P/E of 16. Company reported annual sales of near Rs 900 Cr in the FY 2011. Annual sales are expected to touch Rs 1200 Cr in the FY 2012. The stock price created a 52 week high of Rs 188 on 28 February 2012. The stock price also created a 52 week low of Rs 76 on 21 December 2011. The stock price is now trading in the levels of Rs 183. It is a very good company from the forging industry. Long term investors can consider it as a very good buying opportunity. Long term target is Rs 220/.
Shilpa Medicare
Shilpa Medicare is a reputed pharmaceutical company in India. Company was established in 1987. Company reported a consolidated sales turnover of near Rs 84 Cr in the third quarter FY 2012. Its consolidated sales turn over in the third quarter FY 2011 was near Rs 64 Cr. About 30% increase can be seen in the sales turn over. Company reported a consolidated net profit of near Rs 6 Cr in the third quarter FY 2012. Its consolidated net profit in the third quarter FY 2011 was near Rs 8.5 Cr.
Market cap of the company is near Rs 500 Cr. Book value is Rs 96.08. Price/Book ratio is 2.19. P/E stands at 12. It is slightly above the industry P/E of 11. Company reported a consolidated annual sales turnover of near Rs 290 Cr in the FY 2012. The stock price created a 52 week high of Rs 294 on 15 March 2011. The stock price also created a 52 week low of Rs 135 on 15 December 2011. Stock price is now trading in the levels of Rs 210. Investors bullish on the pharma sector can consider it as a very good buying opportunity. Long term target is Rs 300/.
Stocks Recommended by San Joseph
Shilpa Medicare, Target achieved. How many of you made it