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Tuesday, May 10, 2005

Transport Corporation

It seems undervalue to me.

- PE 14.4. EPS 10.90. CMP 157.5
- Never skipped dividend
- Revenue always increasing (both Y-O-Y and QOQ basis) and so also profitability (with exception of Yr 2000)
- Hugh reserve and surplus (10 times the equity)
- Net Current Assets (Rs 61.59 cr) and Net Current Liabilities (Rs 30.28 cr). So if you get net of these two figures and divide among the 1.05 crore shares it provides the much needed cushion. This is very critical because it provides Rs 30 on each share
- Directors and relatives holding significant number (70% - as per
last figures)
- I expect the company to show 30% growth

Only negative: is high debt component. If company makes effort to reduce this then it would be just fantastic.

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