Business Standard

7 eye-catching stocks

- MUDAR PATHERYA The author is a stock market writer, tracking corporate earnings and investor psychology to gauge where markets are not headed

I must drop in at the optician. There are some numbers that I have read of companies that make me believe that nothing is wrong with the economy and everything is wrong with my eyes. Kopran: There was a time when we used to love this pharma company. Thereafter, the company lost the plot and fell off our radar. The last quarter results were a pleasant surprise, quite like Lazarus emerging from the dead with "Hey guys, I am back!" Profit before depreciati­on and tax has improved sequential­ly across the last four quarters: ~4.87 crore to ~7.08 crore to ~11.86 crore to ~14.91 crore. The small bone I have to pick is a decline in interest cover in the last quarter to a shade below 4, but I am going to be angel’s advocate in the expectatio­n that this aberration is temporary. Gloster: A Kolkata-based jute company with a difference. Wonder why all those who keep talking of "the sun rising again in the east" never refer to this company? Reported a ~76-crore increase in revenues in 2016-17 and a PBDT (profit before depreciati­on and tax) increase of ~32 crore. Top line crossed ~503 crore (when was the last time you saw a jute company report more than ~500 crore in top line?), interest outflow declined and interest cover increased to more than 20x. Equity of ~10.47 crore (~10 face value). Wish there was a larger float. KEC Internatio­nal: There must be something to be said about a company whose revenues increase a mere ~45 crore in 201617 but whose pre-tax profit increases by ~172 crore. The pretax bottom line in the last quarter of 2016-17 of ~208 crore was 45 per cent of the annual (which could be due to bunching of completed contracts during that quarter) one. But one needs to hand it to this company for doing in a single year what normally would take companies a few years. Weizmann Forex: The company has virtually reinvented itself in the last four quarters: PBIDT (profit before interest, depreciati­on and tax) moving from ~4.24 crore to ~9.34 crore to ~14.84 crore to ~19.67 crore. Interest cover of nearly nine. The kind of asset-light company that can create wealth for shareholde­rs if the company merely sustains this quarterly growth momentum. Kuantum Papers: Ebidta (earnings before interest, depreciati­on, tax and amortisati­on) for the last four quarters increased from ~26 crore to ~27.4 crore to ~29 crore to ~37 crore. Interest during the first quarter was ~4.75 crore; interest in the last quarter was the same. Wow. Ballarpur Industries: Alas poor Yorick, I knew him, well. The last quarter’s consolidat­ed numbers: Total income of ~412 crore, net loss before exceptiona­l items ~404 crore. It is an irony that after years you have the paper industry reporting handsome profits and the country’s largest paper manufactur­er hits an iceberg. Sundram Fasteners: I bow to thee O Suresh Krishna! Thy company has reported eye-popping results. Top line increased ~10 crore to ~3,545 crore; pre-tax bottom line strengthen­ed by ~204 crore to ~461 crore. It would be stupid writing anything more after this.

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