Ram Ratna Wires

Ram Ratna Wires is established in 1992 whichmakes Super enamelled copper winding wire,copper wire, copper scrap and PVC insulatedwinding wires. This company is a member of Ram ratna Group which makes wiring cable under the brand name ‘RR KABEL’.Company’s products are widely used in industries like Electrical, Electro-mechanical, Electro hydraulic or Electro-pneumatic, Electronic and Telecommunication equipments and devices.Now company is in an expansion drive to increase its production capacity at its existing unitsand also planning to expand its product line to Enamelled Strips, Enamelled Aluminium Wire, Submersible Winding Wire, Fiber Glass Covered Copper Strips, Paper Covered Copper Strips etc. Copper price is the key factor affecting theprofitability of the company. Since it is the time of booming business for its customers company can pass part of the raw material price to its customers. Last FY companyposted a turnover of 303 crore and a NP of just 1.3 crore and an EPS of Rs.1.2.For the nine month ended Decemberqtr RRW posted a NP of 8.1 crore v/s 1.3 crore in last full year.It is expected to post an EPS of Rs.10/-for the full year which is almost a 10 fold increase compared with last year.Company has an uninterrupted dividend history too. At CMP of Rs.56/- It is a scrip to watch, and buy around 48-51 with time horizon of 1 year to get 100% returns.