The company manufactures & sells broadlythree categories of Pumps :-1. Progressive Cavity Pumps;2. Twin Screw Pumps3. Centrifugal Pumps. Roto pumps ltd manufactured pumps arespecializedand custom made and used in industries where fluid viscosity is high.These pumps are also used in waste water treatment,oil&gas,marine and sugar industries
INFRASTRUCTURE-Rotoâs integrated manufacturing plant in Noida and itâs plantin NSEZ are spread over 20,000 sq.mtrs.. The plants havesophisticated machine tools and testing facilities that ensureconsistent word class quality matching todayâs customerexpectations. All critical components are manufactured inhouseto ensure 100% quality conformance. The company hasstate-of-the-art R&D facility that translates concepts toPrototypes, and Prototype into final Products.Roto sells its products through a wide network of branches inIndia, own Warehouse cum Marketing offices at Australiaand U.K. and network of distributors spread across the globe.The continuous investments in precision measuringinstruments, state-of-the-art testing facilities and thededicated team of engineers are testimony to Rotoâscommitment to maintain and constantly upgrade the qualityof its products. The manufacturing units are certified forconformance to ISO 9001 Quality Surveillance System.
The pumps manufactured by Roto are designed to handlewide variety of fluids ranging from water like fluids to highlyviscous, abrasive, corrosive media with high solid and gascontent. Roto has an extensive experience of handling over1100 types of fluids. Some of the application areas include:-
Agriculture & Irrigation â includes surface water andunderground water.
chemical&process industries â includes general chemicals,paints, adhesives, varnish, inks, paper, pulp, cellulose,vegetable oild, soaps & detergents, starch and Glucose, SugarIndustry and Oil & Petrochemical Industry.
Food, Beverages and Pharma Industry â includes Fruit &Vegetable processing, Dairy &Milk processing,Confectionary& Bakery, Cosmetics & Pharma, Meat & Fish Processing andBreweries, Wineries and Distilleries.Effluent & Sewage Treatment ,Mining,Construction Industry
The fact that the company derives roughly 56% ( fY 2011 )of the Salesrevenues through export sales is a testimony of the quality ofthe products and the companyâs commitment towardsadhering to delivery schedules.
CMP:-98 MARKET CAP-30 CR
The company has equity base of 3.09 cr and promoters holding 69.16 percent.
With 60 per of sales are from exports rupee depreciation enhances the margins.With theassumptionof 100 cr sales and 10-11 cr PAT,33-35 EPS its trading at 3 pe.I think from this price we can easily expect 100 per returns in one year time.
I think with the generalised slowdown, projecting sales growth of around 100 crores might be too optimistic. Company did sales growth from 60 to 75 crores in fy 12. I guess we might go for estimates of around 90 crores with 20% growth unless we come across specific triggers for sales growth.
NPM have been in range of around 9% plus range since past two years. putting that into calculations, we get net profit in range of around 8.5 crores and with outstanding shares amounting to 0.3 crores, eps should be in the range of 28-29 per share.
Triggers for price appreciation could be PE rerating and or earnings surprise.
PE rerating I think can go up to 6-8 times considering the small cap status of the company. (unless we have a roaring small and midcap bull market)
**In this statement they mentioned that "**We have embarked on a fast track growth plan and would be registering over 30% growth in the current year".If we look at companies in this segment like WPIL they performing well.Along with these factors , rupee depreciation by almost 20% gives me confidence to make that projection of 100 cr sales and 10 cr net profit.
Roto pumps announces reasonably good results.Sales grown by 17 per and PBT grew by 55 per.On unexpected high tax provision 50 per PAT grew by 28 per.As you stated due to higher expectations andcomparisonwith mar quarter ,punters are putting pressure on stock.They are recruiting people and giving statements that they are going to achieve 30 per growth.On 25 cr sales they paid 4.5 cr as salaries and in Q1 also they paid more than that.At cmp it is very attractive.
As per the AR, the company is expecting a good growth in its business. However, major threat by Chinese products remains (mentioned in the AR). Has anybody done some research on its product line? Being a small company the AR is quite impressive!
Mail to me as well at my gmail I’d. Roto to apni lucknow Kanpur side ko company which is doing well. You can surely find out more in terms of size of opportunity, promoters n competitive ability. There were unfortunate early demises of promoters if I Remeber correctly but new generation has coped well it seems.
It was a great learning cycle for a person who has started the investing from 2006 year on-wards and had repeated attempts as investor and trader and learning from those repeated failures.Finally landed to valuepickr around Dec’13 to restart from scratch. Started with the set of books shared by Donald, Hitesh, and fellow team here and repeating the reading of all the books again. It is all together a great experience and learning by reading all the great posts and view points (sorry to give the intro theory here since planning to start with roto pumps as the investment story now).
Started with screener.in to get the performance data for the set of growth stocks and analyzed the top 50 stocks where roto pump is generating ROE > 25% for last 10+ years and Sales growth of > 20% over 10+ years.
It is covering all the industries but mainly mines, waste water management, and petro chemical where there is a good demand coming. It is from mundane company from mundane industry (But naming is related to it)
P/E multiples are very low compared to industry average of 15+. KSP pumps are getting rewarded around 15 PE.