I purchased Savita Chemicals yesterday at 218 rupees.
I had last analysed this scrip in a post dated March 16th, 2006 (here). In almost an year, a lot has changed in the company.
1. The EPS is up from Rs. 33.71 per share to Rs. 42.79 per share. FY2006-07 estimated EPS is Rs. 45 per share
2. The shares have come down from a high of Rs. 525 on 15th Jan 2007 to Rs. 222 (9th Mar). After adjusting for the bonus shares issued in Jan '07 - the stock price have dropped by around 30% from peak.
3. Annual increase in sales avg. a strong 27% over the last 3 yrs. This yr, I expect Savita Chemicals to close at a sales figure of around 810 crs (+17% from LY)
4. Profits for FY07 will be around 60 crs (as compared to 37 crs for FY06)
5. The NCAV of the scrip is a healthy 74 rupees per share
6. The company gives a dividend yield of 5.6% which is one of the highest among all businesses
Enclosed is the charting of the scrip over the last 2 months (Jan 17th to Mar 13th 2007).
At a CMP of 222 rupees (9th Mar), Savita Chemical's P/E is 5.40 - way better than it's peers. The business is sound (active for over 45 years) and has a strong management. The scrip has tremendous value and is a BUY candidate.
Tuesday, March 13, 2007
Savita Chemicals
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2 comments:
Savita Chemicals is up to 242 rupees (from 218 rupees on 9th March) .. 10% rise. In the same period, the sensex was down 450 points.
Companies like Savita Chemicals are not worth investing when one has other value buys such as Ciba Specialty available at about the same price
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