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Moneycontrol.com >> Messageboard >> Stocks >> Core Projects & Technologies >> Multibagger Parekh Aluminex target 400 (CMP Rs 111)
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Multibagger Parekh Aluminex target 400 (CMP Rs 111) (1)   02-Jul-09 22:11Track this thread   Tracked by (0)  
Posted by:   Guest on ( 02-Jul-09 22:11 )
Price : BSE: Rs 129.35 ( -2.19 % ), NSE: Rs. 129.15 ( -2.20 % )
Please do not miss this opportunity to load up this gem.


Reason:
Industry leader in its product (AFC/AFR) a FMCG product used in railways , airlines and hotels

Selling at P/E 3.8 on FY09 earnings and 2.2 on FY10 earnings while metal packaging industry peers are trading at 13. FY09 book value at Rs231

Complete monopoly in the country in its core operations (Aluminium foil containers for packing food.) Has made a big foray into foreign markets.

85% market share in its product with no competition seen in near future.
Rated as outperformer by four analysts in Financial Times London

48% revenue growth CAGR for last five years from 59Cr to 421 Cr. No earning hiccups.

60% growth in net profit CAGR in last five years from 3.58Cr to 38.14 Cr.

Consistently increasing dividend from 10% in 2005 to 25% in 2009

Capacity expansion by 2.5 times is complete and EPS is expected to double from these levels on FY10 earnings.

No threat from china as china is a net importer of the raw material.

Management with good integrity.

The FY2010 EPS is estimated at 51 due to capacity expansion results and the stock must reach 400 even for a moderate P/e multiple of 8.
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