KIC METALIKS - CMP Rs 73.00
PNB holds 3% stake and Flemingo holds 12% stake. Now Tisco is interested to buy a stake at Rs. 95 per share.. So, Buy the stock for short term target of Rs 85 - 90.
About CompanyKIC Metalics is primarily engaged in production of pig iron and iron casting having an installed capacity of 110,000 and 18,000 MTPA respectively. Notably, it has a coke oven plant with 144,000 MT capacity for conversion of coking coal to met coke. Although on a small scale, it also produces and markets Portland slag cement under the brand name “KAJARIA” and has a capacity of 33,000 MTPA. Off late, company has installed hot stoves in the blast furnace to bring down met coke consumption and is further looking to put up sinter plant to use low priced iron ore fines. Besides, for last couple of years company is looking to set up a 4 MW captive power plant using its waste blast furnace gas. In near future, it has plans for installation of electric steel making facility to produce steel billet initially and subsequently putting up finishing rolling mills. Hence, company intends to become a mini integrated steel manufacturer of sizeable capacity to produce cheapest steel. For H1FY08, it recorded 40% growth in sales to 107 cr and 55% increase in PBT to 5 cr. Accordingly it may end FY08 with sales of 225 cr and PAT of 6.50 cr i.e. EPS of 12 Rs on fully diluted equity of 5.60 cr.
FinancialsPE ratio 8.53 30/11/07
EPS (Rs) 7.97 Mar, 07
Sales (Rs crore) 60.07 Sep, 07
Face Value (Rs) 10
Net profit margin (%) 2.43 Mar, 07
Return on average equity 9.58 Mar, 07 |
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