About Company:
Mazda is a unique engineering company, situated in Gujrat.
What sets Mazda apart from its peers in India, is the fact that Mazda has
acquired high powered technologies from the West. This combined with its modern
R&D centre, its high standards for quality and its customer-focused
approach, have made Mazda a leading company globally. And is one of the largest
numbers of steam jet vacuum systems and condensers supplier for the process and
power industry.
These systems
installed in several polyester plants globally, are ejector vacuum systems for
steel degassing and vapour powered ethylene glycol ejector vacuum systems. The
high level of success of such installations and the actual savings are evident
through the repeat orders.
With strong focus heavily on steel, process and power
industries, Mazda is on track with its goal – to become a world leader in the
design and manufacture of engineered equipment.
Apart from engineering division it has food division(B cool)
manufacturing, jams, baking powder, food colours, squashes, instant mix which was set up in 2008 for export and has been growing and becoming profitable which accounts
for approx. 10% of overall revenue.
Manufacturing plants : Company has 4 manufacturing units in Ahmadabad
Financials: Achieved Revenue of 103 crores in 2013-14 with
profit of 10.25 crores on small equity base of 4.25 crores. So far in year
2014-15 it has achieved revenue of 85 crores and poised to deliver revenue of
115 crores with growth of approx. 10%.that could result in Net profit of 10.5
crores with expected EPS OF 25 for FY14-15.
Dividend: Company has been consistently paying increasing
dividend and paid 55% dividend last year and this year pay-out could be 60% due
to improvement in financials.
With improving business environment it should drastically improve
the revenue performance in next 2-3 years and should deliver EPS of 35-40 which
could take the price of this stock with conservative PE multiple of 12 to Rs
480-500.
Technically the stock should break the previous high of 295
and should be crossing 300 soon and then could go to uncharted territory and
may create new highs going forward.
Positives:
1.
Almost Debt free company
2.
Consistent dividend payment record.
3.
Leader in niche segment of products which is
going to grow in next 2-3 years.
4.
Strong book value of approx. Rs 200.
5.
Minority shareholding with US company chances of
takeover or majority stake sale.
Long terms investor should buy minimum 100- 200 shares and hold for 2-3 years
for excellent returns.
Sir, is this right time to enter Tara Jewels?..has it reached bottom?
ReplyDeleteyes I guess it has taken u turn from the recently created bottom one can start entering in small quantities
ReplyDelete