I think market has completely ignored (CMP: 62.5) the strong fundaments of this script. This has performed consistently over a period of time. I am providing some highlights below. Pls share your opinion.
1) Aro Granite Industries Ltd., has installed the most sophisticated environment friendly granite processing machinery line from Italy. Complimenting its state-of-the-art equipment, is the ingrained obsession for quality, which has got AGIL the ISO 9000 certification from RWTUV, Germany for Quality Management Systems. Promoted by two technocrat industrialists Mr. Sunil K. Arora and Mr. Prem Arora, AGIL, started its operations in the year 1991 with the manufacture of Polished / Flamed Granite Tiles with an installed capacity of 1,80,000 Sq. Mtrs.
This 100% Export Oriented Unit is ideally located at Hosur (Bangalore) - the Granite Hub of India. Over the years AGIL has earned a high degree of credibility with its broad clientele base as the most reliable and consistent supplier of premium Indian Granites. The customer network of AGIL spans the globe and is currently meeting
the granite needs of USA, Canada, Europe, Japan, Far East and South Pacific Countries.
The Unit II of AGIL manufacturing GRANITE SLABS is equipped with a processing line from some of the world's leading manufacturers making it, one of the finest slab manufacturing plants comparable to the best in the world and has an installed capacity og 1,68,000 Sq. Mtrs.
a) Consistent increase in the sales figures last being 61.14 crs (previous 53.37, 29.71, 24.04, 21.29 respectively). NOT A SINGLE DROP in the last five years. Backed by very decent profitability figures of 8.71 crs (previous being 7.75, 3.44, 4.06, 3.91 respectively). Only in year 2002 profitability dropped to 3.44 cr from 4.06 cr of the previous year but next year it touched high of 7.75 cr and then 8.71 cr which very decent by any means.
b) Book value of 82.35. Some one my argue that this company being in the business of Granite has not got the fancy of the market. But remember this is 100% EOU unit with good profitability and ultra-modern facility run by professionals. Company has shown this in the past thru consistent performance. Expected EPS of 20 and PE at CMP will be 3.
c) Very low share capital of just Rs 7.02 cr. and Reserves & Surplus are 33.86 cr almost 5 times. Out of the total share capital Foreign Holdings is 1.03%, Govt./Financial Institutions Corporate Bodies 10.12% and Directors and their Relatives 51.09%. So for Indian public available pie is just less than 38%. Company has not taken any unsecured (or short term debt). The secured debt is Rs 13.58 cr which has also come down from the previous year. Considering the Total Shareholders Funds of 38.54 cr this is significantly low.
d) Net Current Assets are 28.03 cr while Current liabilities 7.99 cr. So if we get the net of this figure and divide among 70.2 lac share holders then each gets Rs 29 which provides safety cushion.
e) Company has been very generous in giving dividends last two are 15% and previous 14, 12, 12% respectively. Besides, company has given in the last year one bonus of 50%. This company was incorporated in 1989 and has a history of performance.
Considering all these factors I think this is a sure buy.
Please share your opinion.