Equity Watch

This Deepawali May MARSON LTD bring Laxmi to your homes

Marson’s Ltd ISO-9001-2000 certified,50 year young company in power infrastructure sector having state of the art manufacturing and testing facilities for almost all kinds of transformers ranging from 25KVA to 100 MVA is our recommendation this Deepawali 2007.Company has so far supplied more than 100,000 transformers to companies like Siemens, NTPC, State Electricity Boards,CESC, Hydel Power plants, GRIDCO, Ordinance factories etc. Over the last 2 years company’s top line has spurted by more than 50 % and its PAT by about 200%. see financials below . Surely the company is on revival path and is trying to regain its lost glory.

Scrip Code : 517467    Company Name : Marsons Ltd

Type Audited Audited Audited Audited
Date Begin 01 Apr 06 01 Apr 05 01 Apr 04 01 Apr 03
Date End 31 Mar 07 31 Mar 06 31 Mar 05 31 Mar 04
Description Value(Rs. million)
Net Sales 449.51 295.22 211.72 273.58
Other Income 1.48 2.17 1.63 2.22
Total Income 450.99 297.4 213.35 275.8
Expenditure -424 -278.65 -195.98 -254.89
Operating Profit 26.99 18.75 17.37 20.91
Interest -13.07 -11.06 -8.72 -12.01
Gross Profit 13.92 7.69 8.65 8.9
Depreciation -4.92 -4.42 -6.36 -6.26
Profit before Tax 9 3.27 2.29 2.63
Tax -3.15 -1.32 0.88 2.56
Profit after Tax 5.86 1.96 3.17 5.19
Net Profit 5.86 1.96 3.17 5.19
Equity Capital 108 108 108 72
Reserves 30.15 29.23 20.49 55.33
EPS 0.11 0.04 0.06 0.72
Nos. of Shares – Non Promoters 45771670 45422457 41781834 4500905
Percent of Shares – Non Promoters 84.76 84.12 77.37 62.51
Result Type A A A A
  Notes Notes Notes Notes

 

financials reproduced from bseindia

Company’s equity capital is Rs.10.8 crores with 5.4 crore shares of Rs.2 FV.At CMP of Rs. 4.5 the market capitalisation is just about Rs. 25 crores. Company has its manufacturing units in almost 4 lakh sq ft area in proximity to port and is the largest manufacturer in Eastern region. It also has its own Transformer Oil Plant , Copper wire and Strip plant. Replacement cost of such a strategically located plant will not be less than Rs. 100 crores.With unsecured loans of about Rs. 10 crores the share at CMP appears to be undervalued, and can prove to be a multibagger.

Buy at CMP is recommended with atleast one year HOLD

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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