Sunday, June 5, 2011

Fluidomat

Bse Code: 522017.
CMP: 33 rs.
Collect slowly in range of 30-32
Target: 55-60 rs in 1 -1.5 year...
Return: 80-100%
Time : 12-18 months.

Company Profile:

Fluidomat started operations in 1971 at Dewas in Madhya Pradesh to manufacturer fixed speed and variable speed fluid couplings for various industries. Company’s products are mainly used in sectors like Power generation, Cement, Steel, Fertilizers and Mining. Well known leaders from these sectors like ABB, Kirloskar, TRF, Walchand Nagar, BHEL are in company’s client list. Company’s order book showing good growth in recent times due to surge in activities in the above mentioned sectors. Recently company added Variable Speed- Scoop Controlled Coupling to its products line .In the last financial year company posted a turnover of 22.5 Cr , net profit close to 2.3 Cr and an EPS of Rs.4.6. Fluidomat is expected to declare good numbers ahead. It is now trading at Rs.33/- with a P/E multiple of 7 which is at the lower end, for a specialized company like this. Keep an eye on this one. Also company had declared first dividend this time of 1 rs per share. So soon get attention of investor which look for dividend paying companies...Dividend yield of 3% approx on current price.

One can add this with long term view on it, as downside is capped at 30-31 levels, and upside could be good, once it get real valuation....

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Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.