Equity Watch

AMCO INDIA scrip to gallop and catch up with its Book Value of Rs. 52

Amco India Ltd, manufactures  PVC Leather Cloth, PVC Films /Sheeting and Aluminium Foils, at its 4 units located at Noida UP,( 2 units) Bhiwadi Rajasthan,and at Baddi HP. PVC Leather Cloth caters to the need of furnishing units ,sport shoes,belts ,wallets ,purses and many other articles requiring PVC leather cloth. PVC Films and Sheeting are used for shower curtains ,side door panels, insulation tapes , rain wear , stationary etc. and Aluminium Foil finds diverse use in food packaging, cigarette box foil, label foil , laminates, packaging for pharma products, cable wrap, fins for heat exchangers  etc.etc.

Company has an equity capital of  Rs. 4.1 crores and book value of Rs. 52. Share is available at Rs. 21. Thus the market capitalization of the company is barely Rs. 8 crores . Company is planning to double its capacities from present 4.8 million meters of PVC Leather cloth to 9.6 million meters,PVC FILMS and Sheeting to 9000 tonnes from present 4800 tonnes, and aluminium foils to 4800 tonnes from existing 2400 tonnes.With expansion, top line is expected to increase to almost Rs. 300 crore from Rs. 100 crore for FY07. Financial  summary is given below :

Scrip Code : 530133    Company Name : Amco India Ltd

Type UnAudited UnAudited UnAudited Audited UnAudited
Date Begin 01 Oct 06 01 Jul 06 01 Apr 06 01 Jan 06 01 Oct 05
Date End 31 Dec 06 30 Sep 06 30 Jun 06 31 Mar 06 31 Dec 05
Description Value(Rs. million)
Gross Sales 262.94 243.99 243.36 250.5 264.05
Excise Duty -32.23 -30.11 -27.91 -30.04 -33.58
Net Sales 230.71 213.88 215.45 220.46 230.47
Other Income 2.87 0.29 0.21 1.2 0.45
Total Income 233.58 214.17 215.67 221.66 230.93
Expenditure -219.27 -202.93 -200.2 -208.85 -217.22
Operating Profit 14.31 11.25 15.47 12.81 13.71
Interest -5.44 -5.13 -4.82 -4.68 -4.9
Gross Profit 8.87 6.12 10.65 8.12 8.8
Depreciation -3.52 -3.22 -3.12 -2.79 -2.78
Profit before Tax 5.36 2.9 7.54 5.33 6.02
Tax -1.8 -1.27 -2.48 -4.47 -1
Profit after Tax 3.56 1.63 5.06 0.87 5.02
Net Profit 3.56 1.63 5.06 0.87 5.02
Equity Capital 41.1 41.1 41.1 41.1 41.1
Reserves 163.51
EPS 0.86 0.4 1.23 0.21 1.22
Nos. of Shares – Non Promoters 1537669 1537669 1539269 1539269 1539269
Percent of Shares – Non Promoters 37.41 37.41 37.45 37.45 37.45
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes

For FY07 expected EPS is Rs. 3.6 and thus the share is available at P/E of just about 6. However for FY 08 EPS could jump to Rs. 7.And beyond one year company may declare a BONUS Issue as the book value is expected to be close to Rs. 55.

Investment is recommended at present levels ( CMP Rs. 21)and a hold for atleast one year for the scrip to attain its true potential.

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