Stock Recommendations- Dhanalaxmi Bank & Havells India

Dhanalaxi Bank

Dhanalaxmi Bank was incorporated in 1927. It is an aggressive private bank from Kerala. Bank reported a sales turnover of near Rs 370 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 1290 Cr. An increase above 9% can be seen in the sales turn over. Company reported a net profit of near Rs 4.35 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 1.62 Cr. Increase above 170% can be seen in the net profit.

Market cap of the bank is near Rs 500 Cr. Book value is Rs 99.21. Price/Book ratio is 0.55.   P/E stands at 17. It is above the industry P/E of 9. Bank reported annual sales of near Rs 900 Cr in the FY 2011. The bank is trading half of its annual sales. The stock price created a 52 week high of Rs 135.95 on 25 April 2011. 52 week low by the stock is Rs 41.95. Excellent third quarter results are expected in the FY 2012. It is a clever buying opportunity for long term investors. Long term target is Rs 100/

Havells India

It is a prominent company from capital goods sector. Company is engaged in the manufacture of electrical and power distribution equipments. Company reported a sales turnover of near Rs 850 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 700 Cr. 20% increase can be seen in the sales turn over. Company reported a net profit of near Rs 70 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 60 Cr. About 15% gain can be seen in the net profit.

Market cap of the company is near Rs 5400 Cr. Book value is Rs 107.46. Price/Book ratio is 4.01. P/E stands at 20. It is slightly below the industry PE of 21. Company reported annual sales of Rs 2900 Cr in the FY 2011. The stock price created a 52 week high of Rs 451.25 on 15 June 2011. It also created a 52 week low of Rs 290 on 10 February 2011. The stock price is now trading in the levels of Rs 430. It is a very good buying opportunity at current levels. Long term target is Rs 600/

Stocks Recommended by San Joseph

One Response to Stock Recommendations- Dhanalaxmi Bank & Havells India

  1. San Joseph(Author) says:

    Havells India, target achieved

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