Fedders Lloyd Corp was one of the quiz questions covered when it was at around Rs53 about 4 months ago. Please find below the updates post recent quarterly results. The stock has reacted sharply to the results.
The profit has come down and I have given an explanation below.
Some good points
- the promoters stake continuous to be healthy with no pledging. They increased the stake in last Dec by around 2.3%
- the stock is cheap with a good brand
- the company has presence in railways and defense sectors and may benefit from the actions taken by the new government.
- the operating profit margins are very good and have improved
The immediate concerns are:
- the interest component has increased to Rs33 Crore from 9Cr a year ago and 13Cr in last quarter. Had this not been such a steep rise the profits would have been much better. We do not have the info as of now to understand the rise in interest cost.
See the original posting: http://dharmawat.blogspot.in/
Disc.: No holding in the stock.
Cheers,
Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/
slideshare: www.slideshare.net/ndharmawat/
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/
slideshare: www.slideshare.net/ndharmawat/
Linkedin: in.linkedin.com/in/dharmawat/
IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in the stock idea discussed here. Please do your homework and take the help of a qualified advisor before you take any financial decision.
IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in the stock idea discussed here. Please do your homework and take the help of a qualified advisor before you take any financial decision.
1 comment:
Dear Sir,
What is your call on this company as it seems good investment opportunty.
Thanks,
Neeraj
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