Hello,
May I know your opinion on Manaksia Industries.
FINANCIALS:
Market Capitalization:440 crores. TTM profit:78 crores. P/E:5.57
Main reason why i am interested in this stock is that the latest annual report released 2 days back discloses mutual fund investments of around 400 crores.On top of that the working capital of 263 crores.As a result it is now trading at a deep discount to cash +WC.Also all comparable stocks like NILE,Ram Ratna Wires,Precision wires are also at higher P/E multiples.
Furthermore,the company has paid 117 percent of its profits last year and 33 percent of its profit this year as dividend.
The shareholding has also gone up in the past year by 2 percent to close to 75 percent.The only unknown seems to be it’s nigerian subsidiary,but the company has generated cash and invested in MFs,never diluted equity,promoters have increased shareholding and recently paid heavy dividends.
The dividend yield of the stock is 4.5 percent.
BUSINESS DETAILS:
Sponge iron and value added steel products comprising Cold Rolled Sheets used in interior and exterior panels of automobiles, buses and commercial vehicles, Galvanised Corrugated Sheets used in the rural housing sector and factory buildings and Galvanised Plain Sheets, used in the manufacture of containers and water tanks and Colour Coated (Pre-painted) Coils and Sheets for sale to construction, housing, consumer durable and other industries.
Aluminium rolled products in coil and sheet form used in closures, bus bodies, flooring and general engineering
purposes and Colour Coated (Pre-painted) Coils and Sheets for manufacture of heat exchanger fins for air conditioners
in the HVAC sector and Aluminium alloy ingots used in the steel and automotive industry.
Roll on Pilfer Proof (ROPP) Closures for liquor and pharmaceutical sectors, Crown Closures for beer and carbonated
soft drink sectors.
Kraft, Brown and Fluting paper
Kindly share your thoughts.
Disclosure:Invested.