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Saturday, 5 May 2012

WEEKLY INVESTMENT SCRIP

Scrip : Hyderabad Industries

Date of Incorporation : 1946

Registered Office : Hyderabad, Andhra Pradesh

Chairman : C K Birla

Face Value : Rs.10

Market Price : Rs.363.10

Target Price : Rs.450

EPS 2011-12 : Rs.81.13

Book Value : Rs.451.21

P/E Ratio : 4.48

52-Week High/Low : Rs.424/Rs.255

Group : C K Birla Group

Products : Building Products, Thermal Insulation, Products and Wind Power

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars QE 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 24,883 19,146 85,781

Total Expenditure 22,341 18,008 77,148

Other Income 119 468 608

Interest 86 182 748

Tax Expense 793 390 2,881

Net Profit 1,798 1,052 6,055

Equity (FV: Re.10) 749 749 749

Res Ex Rev Reserves - - 33,047

EPS (Rs) 24.07 14.09 81.13

Reasons for Recommendation:

* Company with excellent pedigree and commendable track record

* Rise in sales and profitability

* Increase in Earnings Per share

* EPS of Rs.81.13 with P/E multiple of 4.48

* Dividend of 125% declared for 2011-12

* Book Value: Rs.451.21 (FV: Rs.10

* Assuming a P/E multiple of a modest 10, the projected price is Rs. 813 in a buoyant market. However, a minimum target of Rs.450 is expected.

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.

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