Buy Sah Petroleum (532543)--Buy around 29-30 levels, Target 38-40 in short term. Medium term 55 levels possible.
About the company
Sah Petroleum is in production of Industrial Lubricates and recently entered into Automative Engine oils segment. Company is having good market in Industrial, Transformer oil, White oil and rubber process oils. Its brand name is IPOL for which production units are at Vasai and Daman. Though Castrol and other oil companies are leader, but Sah Petroleum is growing slowly and can raise market % slowly over time. Company is owned by Navis Capital a PE player. holding 62% stake in the company and only 10% is with the general public. Company is developing its presence all over india in its newly launched Automobile Lubricants. Good parts is this the company is closely held for last 2-3 years with the PE player and it seem possible that once it is in good profit it will get sold at very high valuations, as Navis Capital is known for much turn-around. Results of full financial year was a turnaround performance and gave EPS of 3.22 against negative EPS of -1.39 last year. So company is in black again and technically also strong. We recommended to members at 27 and now it is 32.8, short term targets are done but in any correction to 29-30 levels will give long term player good opportunity for buying and keeping in portfolio. Medium/long term 55 levels possible
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Saturday, May 21, 2011
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