Stock Picking - Art Or Science

If there is one Legal way to Become Rich early, it is by Investing in Stocks and Real Estate. In this Blog you will not see general news which are available at numerous sites, instead u will get filtered news and opinions which matter. Many a times some small but important news were overlooked because of simultaneous big event, I try to put all those news in my Blog. The Home Page shows posts of only last 10 days. To see all the posts click on the month in the Archive section.

Tuesday, January 31, 2006

Ratnamani Metals - A Valuable Ratna

Ratnamani Metals - Piping Its Way To Profit

The Q3FY2006 results of Ratnamani Metals and Tubes Ltd (RMTL) are above expectations. Its revenues grew by 121.9% to Rs118.5 crore over last year. The massive growth in the top line was achieved on the back of a strong order book. The operating profit grew by 168.5% to Rs20 crore in Q3FY2006 year on year (yoy). The operating profit margin (OPM) improved by 293 basis points to 16.9% during the quarter. The OPM improved owing to the easing of the raw material prices going forward. RMTL's profit before tax (PBT) increased by 157% to Rs1,498 crore yoy. The net profit increased by 146% to Rs9.86 crore yoy. However the provision for tax for the quarter included the Rs1.73 crore paid for the previous year. Excluding this, the profit after tax (PAT) increased by 190% to Rs11.6 crore.

RMTL has reported a net profit of Rs20.9 crore for M9FY2006 as compared to FY2006 estimate of Rs24.5 crore. The company is expected to earn a net profit of Rs26.3 crore and Rs36.1 crore in FY2006 and FY2007 respectively. The stock trades at 11.3x the FY2006 and 8.3x the FY2007 earnings estimates. Ratnamani holds a lot of value at current market price and risk-reward ratio is in favour of investors.

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