ASSOCIATED STONE INDUSTRIES (KOTAH) LIMITED ( CMP 82 )
Rajasthan Based Associated Stone Industries (ASI) is the large producer of Kotah Stones in India. ASI has its own mines equipped with the most modern mining equipments, diamond cuttig tools etc producing widest variety of Natural Stones. ASI is producing 2 types of Kota Stones i.e. Blue Kota Stones and Brown Kota Stones. Apart from Kota stones, ASI is also producing 4 varieities of Sand Stones i.e Kandla Sandstone, Buff Sandstone, Rajgreen Sandstone and White Sand Stones.
ASI in fact owns THE LARGEST QUARRY IN THE WORLD WHICH IS SPREAD OVER 10 square kilometres and produces annually around 15 crores s f of Kota stones.
Scrip is recommended for investment as market cap of ASI is just 115 crores, trading at 6.25xFY15 EPS. Book Value is Rs 78/
FINANCIAL PERFORMANCE:
Q U A R T E R E N D E D Y/ENDED
31.03.2015 31.12.2014 31.03.2015
Rs/Cr Rs/Cr Rs/Cr
Sales 73.45 39.16 209
Depreciation 1.57 1.96 6.43
Finance Cost 3.26 1.12 8.22
Profit before Tax 19.18 12.10 31.43
Profit After Tax 10.96 8.34 18.41
Equity 6.63 6.63 6.63
EPS Rs 8.27 6.29 13.90
Promoter 70.40%
Now Associated Stone is poised for huge growth as company has acquired a mine in UAE with total investment of Rs 110 crores. This mine has start production in June 2015. When fully operational, UAE operations can add Rs 300-350 cr per annum to its topline and more than proportionate rise in profit margins
FUTURE OUTLOOK:
2015-16
Rs/Cr
Sales 270
Profit after Tax 24
Equity 6.63
Eps Rs 18
In current market scenario, ASI seems highly underpriced considering that:
1. ASI mines/quarries are spread over 10 square kilometres. These are the largest quarries in the world.
2.Scrip is trading at 6.25xFY15 Eps
3. Scrip is available at 4.90xFY16E Eps
Promoter stake is quite high at 70.40%
Even if ASI gets modest PE Ratio of 8, its share price should be Rs 144 based upon expected Eps for FY16.
Rajasthan Based Associated Stone Industries (ASI) is the large producer of Kotah Stones in India. ASI has its own mines equipped with the most modern mining equipments, diamond cuttig tools etc producing widest variety of Natural Stones. ASI is producing 2 types of Kota Stones i.e. Blue Kota Stones and Brown Kota Stones. Apart from Kota stones, ASI is also producing 4 varieities of Sand Stones i.e Kandla Sandstone, Buff Sandstone, Rajgreen Sandstone and White Sand Stones.
ASI in fact owns THE LARGEST QUARRY IN THE WORLD WHICH IS SPREAD OVER 10 square kilometres and produces annually around 15 crores s f of Kota stones.
Scrip is recommended for investment as market cap of ASI is just 115 crores, trading at 6.25xFY15 EPS. Book Value is Rs 78/
FINANCIAL PERFORMANCE:
Q U A R T E R E N D E D Y/ENDED
31.03.2015 31.12.2014 31.03.2015
Rs/Cr Rs/Cr Rs/Cr
Sales 73.45 39.16 209
Depreciation 1.57 1.96 6.43
Finance Cost 3.26 1.12 8.22
Profit before Tax 19.18 12.10 31.43
Profit After Tax 10.96 8.34 18.41
Equity 6.63 6.63 6.63
EPS Rs 8.27 6.29 13.90
Promoter 70.40%
Now Associated Stone is poised for huge growth as company has acquired a mine in UAE with total investment of Rs 110 crores. This mine has start production in June 2015. When fully operational, UAE operations can add Rs 300-350 cr per annum to its topline and more than proportionate rise in profit margins
FUTURE OUTLOOK:
2015-16
Rs/Cr
Sales 270
Profit after Tax 24
Equity 6.63
Eps Rs 18
In current market scenario, ASI seems highly underpriced considering that:
1. ASI mines/quarries are spread over 10 square kilometres. These are the largest quarries in the world.
2.Scrip is trading at 6.25xFY15 Eps
3. Scrip is available at 4.90xFY16E Eps
Promoter stake is quite high at 70.40%
Even if ASI gets modest PE Ratio of 8, its share price should be Rs 144 based upon expected Eps for FY16.
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