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Sunday, August 28, 2011

Ruttonsha International Rectifier: Value Buy.

Ruttonsha Internationa Rectifier

CMP: 13
Market Cap: 9.04Cr
Sales TTM: 24.52Cr
Net Profit TTM: 1.45Cr
Reserves March 2011: 3.77Cr
Debt 8.6Cr
ROCE March 2010: 13.15%
Ruttonsha International Recitfier was incorporated in 1969 and became a public limited company in 1992 and listed in BSE. Ruttonsha produces high power semiconductor devices, silicon control rectifier, power rectifier such as bridges, modules, diodes, thyristors in the range of 6Amp to 6000Amps and voltages upto 5000Volts.
There has been a management change old promoters "Ruttonsha" have sold their shareholding to "Mehta's" 
With the management change Ruttonsha International Recitifier (RIR) has been paying dividends. Promoters own 73.13% of shares.

There are only 4000 shareholders and even 2 public shareholders with 4.46% shares are Mehta's. Very low public shareholding well established in its area of business. +ve operating cash flows. The stock is unknown and under owned. Dividend record date is Sept 24-Sept 26, 2011. Dividend is 75 paisa at current prices Rs 13 the dividend return is an easy 5.7% (in 1 month) 

Conclusion: Very low liquidity so difficult to accumulate stock. stock price should rise as the promoters seem to be more investment friendly, company is well established in its area of business. Semiconductors are efficient energy devices and their use should increase with time.

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