Ind Swift Lab

Ind Swift Labs moved UP by 15% today. I bought the stock yesterday.

It's not often that I write a statement like this. Fluke .... (no wait) ... big fluke !!!! ... not buying the stock, but the sudden jump

Share Capital - 20.90 crs
Loans - 145.35 crs
Investments - 3.14 crs
Net CA - 88.16 crs
FV - 10.00 rupees per share
Dividend - 1.50 rupees per share
CMP - 115.00 rupees (Mar-24)
LY Profit - 26.59 crs

Why I bought Ind Swift Labs?

1. I estimate a closing yr profit of 35 crs i.e. a P/E of 6.87.
2. Growing profits and sales for the last 5 years (YoY (04-05) growth in profits was 300% and sales was at 55%)
3. The sales growth numbers (qtr-on-qtr for 2004 and 2005) show a progressive story -
a) March - 45.22 crs v/s 83.22 crs (84% increase)
b) June - 44.00 crs v/s 79.97 crs (82% increase)
c) September - 45.48 crs v/s 80.28 crs (77% increase)
d) December - 66.75 crs v/s 82.36 crs (24% increase)
4. Profits have also moved in a positive direction, though not on similar constants - 251%, 18%, 21% and 418%.
5. Dividend yield is 1.30%. I expect a higher dividend payout of 2.5 rupees per share i.e. a dividend yield of 2.17%.
6. Excellent news value
7. The final blow was dealt by the charting of the scrip. Notice the fall in the share from 210 rupees, an year back to half that price today. The big avalanche started from Jan 18th (170 rupees) till it reached it's low of 97.60 on March-23rd (yesterday).

Please note that Grahamian numbers will not purport a buy for the stock because of the negative NCAV of 25.86 rupees, low cash in company and high debt. I find the management good, an enticing price even at 115 rupees (imagine, I bought it yesterday at 97 rupees) and excellent growth prospects.