9 month ending Dec 2010 Jayant Agro has:
Consolidated Sales: 843Cr
Consolidated PBDIT: 51.71Cr
Net Profit: 20.31Cr
on an Equity of 7.5Cr and Face Value of each shares as Rs 5 EPS works out to be: 13.54
Pls note this is for 9 months data. the PE at share price of Rs 100 is 7.38
Now let us look at the historic PE of Jayant Agro Organics.
The highest PE in 4.33 yrs is : 38.62 on Jan 2008
The lowest PE in 4.33 yrs is: 6.28 on Dec 2008
The current PE of 7.38 is actually rock bottom PE of Jayant for past 4.33 yrs.
(Because this PE is calculated over 9 months) and we still have 1 Quarter of Results "This is Rock Bottom"
if you look at the Big Picture!!
Conclusion: Jayant Agro is a castor derivatives market leader and the market is yet to discount the huge increase in earnings that Jayant Agro has reported in past 9 months (Link). Assuming even a conservative 15 PE jayant should be valued at 203 (assuming 9 months of earnings data) So this is a conservative estimate and a recommendation to buy with at least 12-18 months horizon and 100% appreciation from these levels..
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14 comments:
good 1.... had come across wid this site called moneysights.com
a good site so thgt of sharing wid u ;)
Thanks for sharing Wonderful analysis again on jayant agro Sir.. Looking at markets i am taking cautious approach and planning to add this script in phased manner. I hope it will work out.
I have a quick question, did you pull historical PE on monthly basis from any site? i would be obliged if you could share the site name? i could not find any such site and pulling it through bse or nse will be a cumbersome task. Thanks
Guru:
The site is: Geojit.com
=happy investing
whatsup-indianstockideas.blogspot.com
sir pls give your mobile number i would like to talk to you
with regards
dee
Anonymous:
I am sorry but I would like to keep my number private
You can however email me on: whatsupPrahalad@gmail.com
=happy investing
whatsup-indianstockideas.blogspot.com
Kalpesh:
Thanks.. I finally got into the site.
There is another web site: moneyworks4me
Now days good data is easily available... but still Jayant agro has got a lower rating than GAEL .. so there is a possibility of some fine tuning for consolidated results..
I remember getting Godrej industries very cheap as nobody was looking at consolidated data.. look at it now.. Godrej industries is up more than 100 times..
=happy investing
whatsup-indianstockideas.blogspot.com
yaa ..guess the site ws under maintance..thnx for a new site recomm..will have a look wid tht..i hav enterd Jayant arnd 94 levels good numbr of stocks kept...havnt enterd GAEL donno y...jayant looks more promising soo...
n havnt heard any new stocks from you yet..looking forwd for the same.
Thanks again.. :)
Prahlad ji, Hope you still tracking SKM Egg. Now stock is stablised at 10 level. continues rising raw material situation is it worth pick long term point of view? As per the management company is still facing margin pressure.As your observation what can be the trigger of this stock?if you compare with venkyes with this company. What are the things attracted for you? kindly share your thought .Thanks
Kalpesh:
Jayant has Net Profit: 20-25Cr for year ending March 2011
GAEL has Net Profit: 84-90Cr for year ending March 2011
MArket Cap: Jayant: 135Cr
Market Cap of GAEL: 435.8Cr
GAEL has 3.6 times profits of Jayant
GAEL has market cap: 3.2 times of Jayant
So GAEL is as cheap as Jayant ..
The only positive thing is Jayant and Castor are unique with India (and small investor base)
while GAEL is just another maize derivatives player and an integrated solvent extraction company..(GAEL is fundamentally very strong)
==========
Long term Its anybody's guess..
I like both of them as my long term investment
=happy investing
whatsup-indianstockideas.blogspot.com
Anonymous:
Eggs have a shelf life of 15-30 days while powdered egg has a shelf life of 1 year or more..
It increases the transportability of Eggs and for fast food companies and bakeries these are big advantages..
Add to the fact that they become 100% germ free.. and retain all the nutrition value..
Its a long term value buy idea.. at a very very cheap price I must state..
=happy investing
whatsup-indianstockideas.blogspot.com
Dear WhatsUp, Do you tracking KS OIL ? it have good brand name in india and good local consumption story. but share price is continues going down. Recently famous investor SIVA also taken stake in this company. please share your view about at current market price and future out look of this industry
Anonymous:
KS Oils
Market Cap:1233.66Cr
Debt 1477Cr
Promoters have pledged securities and this is not good. Jayant is in castor oil business which is 99.9% export oriented.. (so not comparable with Jayant though GAEL is somewhat similar to KS Oil)
KS OIL is a play on the growing consumption story of indian middle class...
My suggestion: Its an avoid as the company is an entrant in a competitive market with players like marico and ITC, AGRO Tech ..
Adani
I would say avoid.. as it takes a lot of effort to build a brand and have a distribution network..
=happy investing
whatsup-indianstockideas.blogspot.com
Hi What'sUp, Thanks for your comment. Please not K S Oil is 25 year old company and have good distribution network.this is low operating margin business but KS oil is one of the highest OPM in the industry.Also have good land bank assets in different countries
Anonymous:
Maybe you have more insight than what you are disclosing.. but looking just at the data its a bit difficult..
Another problem is .. once a stock has already been discovered.. the easy money is already done for..
Its like buying Venky's at 600 .. Its got value.. but not the same as Venkys at sub 140 levels..
That's one reason I avoid large cap stocks..
=happy investing
whatsup-indianstockideas.blogspot[dot]com
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