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Sunday, January 31, 2010

SOKHI PICK OF THE WEEK : Suryalata Spinning Mills Ltd. 514138 CMP Rs 56

Due to improved realization, Company is performing extremely well in Current Year. H1 PAT is 3.20 cr. against loss of 10 lakhs in H1 of previous year. In fact, H1 PAT is higher than PAT of entire 08-09. H1 Cash EPS is 17.52. Yarn prices have gone up further in last 3 months and hence H2 is likely to be much better than H1. Company like Suryalata makes large provision for depreciation and we believe that Suryalata should be valued on CEPS basis also and not EPS basis alone.

BUY at CMP 56 SL 47 Targets 60 / 65 / 70

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All the advises,calls,tips and predictions are neither an offer nor a solicitation to purchase or sell securities.The information and views given by writer is believed to be reliable but no responsibility (liability) is accepted for error of facts and opinion.Writer may be trading in or having positions in stock markets.