Smooth sailing

SMART FEATURE/ PENNY WISE

omoters, seven cases against the company/group and a Sebi penalty on Thakral Investment Holdings (one of the promoters).  Though the reputation of the management is a definite concern, it may not have a direct impact on the company's business in the near-term. 
 

Financials
(Rs crore)	JQ05	JQ04	% change	FY05	FY04	% change
Net sales	33.82	17.75	90.54	93.66	59.15	58.34
Other income	0.84	0.20	320.00	1.33	0.61	118.03
Operating profit	21.78	8.82	146.94	52.95	22.28	137.66
OPM %	64.40	49.69	-	56.53	37.67	-
Net Profit	17.14	5.61	205.53	34.75	19.13	81.65
NPM %	50.68	31.61	-	37.10	32.34	-
EPS	2.22	2.29	-	5.41	2.99	-
P/E 12 months                                                                       23.68

 For the June 05 quarter, the company posted a 206 per cent growth in net profit to Rs 17.14 crore as compared to Rs 5.61 crore in corresponding previous year. Revenues were up 93.10 per cent to Rs 34.66 crore during the same period. Operating profit margins improved to 64 per cent from 50 per cent, while net profit margin grew to 50 per cent from 31 per cent.  The company attributes this to rationalization of operations, increased volumes and capacity additions. For FY05, the company posted an 82 per cent growth in net profit to Rs 34.75 core, while the net sales increased by 58 per cent to Rs 93.66 crore. On an annualised EPS of Rs 9.12, the stock trades at a P/E of 23.7x, which compares well with its peer, Concor (20.1x).