hi guys
i am technical analyst.and i am bullish on eastern gas.i just want to know from your side that what is the impact of crude oil fall on this company.as this co.distribute LPG cylinder in kolkatta.i read annual report from last 5 year topline and bottomline increase considerbly.so pl share your view on falling crude is impacted this company
The company is into trading of LPG.
So effect of falling or rising crude will be minimal.
As per AR fy 14 , the inventory was only 74 lacs on a rev of 220 cr. So the effect is going to be negligible.
However, the NP margin is pathetic 1-1.5%, debt has been rising, ROE is pathetic. Promoter have increased stake mainly thru off market purchase. I dont consider these as good signs.
On the positive side , company has invested about 15 cr in fixed assets - purchased 2 bottling plants recently. But unless the ROCE improves there is no point.
