Q3 PAT ZOOMS from 2.19Cr to 53Cr

JINDAL POLY FILMS LTD Rs 512:-Top Pre-Budget Pick

For quarter ended December 2015, JPFL has reported 2300% RISE as CONSOLIDATED NP stands at  Rs 52.92 crores as against NP of 2.19 crores in corresponding quarter of previous year.. It means EPS FOR 9 MONTH ENDED DEis Rs 89.65 before minority interest and Rs 70 after minority interest. JPFL IS LIKELY TO MAINTAIN SAME TREND FOR Q4 AS WELL(one of biggest beneficiary of slide in crude prices), thus Consolidated Eps for FY16 IS ESTIMATED TO BE Rs 105(before minority interest). CASH EPS MUCH MUCH HIGHER AS JPFL PROVIDES AROUND 225 CR FOR DEPRECIATION (Eq 42 cr). JPFL is trading at mere 4.87xFY16Eeps. PE Ratio after minority interest stands at 6.02.  Even if JPFL gets modest PERatio of 12, stock should be Rs 1200 in next 12-15 months (provided broader markets do not witness sharp fall and remain stagnant/bullish) on Eps calculated after minority interest 

1. Leading producer of Polyester and BOPP Films for Flexible packaging industry

2.Largest producer in the WORLD of BOPP films

3. Apart from India, two plants in U.S.A and three in Europe

4. FY15 Sales Rs 7284 crores and PAT of Rs 172 crores (after One-time provision of Rs 118 crores)

5. FY15 Eps (after one-off) Rs 43.22

6. 9M/FY16 PAT  Rs 377 crores (much higher than PAT of entire FY15) with Eps of Rs 90(before minority interest)

7. FY16 Eps CAN BE Rs 105

8. PE Ratio just 4.87 (FY16E earnings) despite being leading player in flexible packaging industry

9. QIP likely to be priced @ Rs 700+

10 Even if JPFL gets modest PE Ratio of 12 on Eps after minority interest (in a scenario where PE Ratio of 20-30 has become norm even for much much smaller companies), its stock can be Rs1200 next year

BACKGROUND:

JPFL is a leading producer of Polyester and BOPP films mainly used for the flexible packaging industry. The company's manufacturing facility at Nasik is world's single largest location factory for producing these plastic films. After acquiring BOPP films divison of ExxonMobil, JPFL has become largest producer of BOPP films in the world with combined capacity of 4.45 lac TPA.

BOPET Film:  BOPET Film is a versatile product broadly classified according to thickness of the film, Thick films find application in photographic/X-Ray, electronics, printing, textile, pre-press back up films, for hoto voltaic cells used for generating solar power and office supplies, motor insulations photopolymer plates and document

lamination. Thin films are used in flexible packaging metallic yarn, cables, transformers, capacitors, audio/video tape, hot stamping foils etc  JPFL has capacity to manufacture 1.27 lac TPA of BOPET film.

BOPP Film: Better moisture retention properties render BOPP film more suitable for food products like snack foods, biscuits, pasta, dried foods and woven polypropylene bags. Further, BOPP film also finds application in over wrapping fo cigarettes, CDs, adhesive tapes, readymade garment bags and print lamination. JPFL has capacity

manufacture 2.10 lac TPA of BOPP films

METALIZED FILMS: Vacuum deposition of Aluminium on BOPET and BOPP films increases the barrier properties of such films, Besides,flexible packaging metalized BOPET films is used for metallic yarn.Metalized BOPP is widely used for gift wrapping.

COATED FILMS: PVDC coated BOPP and BOPET films are used in the flexible packaging industry and co has capacity of 4500 TPA to manufacture3 PVDC, Acrylic and LTS coated films.

JPFL also produces various grades of BOPP films, like heat seal film,ape and textile film, metalized films, pearlized films, opaque film etc

JPFL also has in-house facility to produce polyester chips for its BOPET film business. Co has installed capacity of 1.76 lac TPA.

FINANCIALS:

                          2014-15

                            Rs/Cr

Sales                    7284

Interest                     82

Depreciation            226

One-Off                  117

PBT                       233

PAT                       172

Equity                    42.05

EPS Rs                 43.22

For FY15, JPFL reported Eps of Rs 43.22 after one-off provision of Rs 117 crores. But for same, Eps would have been Rs 65+.  JPFL made huge provision of 226 crores for depreciation which means CASH PROFIT OF

NEARLY Rs 400 crores.

CURRENT YEAR:

                                 2015-16E  9M/FY16

                                  Rs/Cr       Rs/Cr

Sales                          7000        5308

PAT                             442          377

Equity                         42.05      42.05

EPS Rs                        105           90

Eps(after minority Int)      85           70

JPFL's Indian operations are Debt-free. JPFL has resorted to borrowings for acquisition of 5 plants of ExxonMobil.  Now, company is planning to raise funds via QIP for raising production capacity by 1.60 lac tonnes. QIP is

likely to be priced @ Rs 700+ (substantial premium to its current market price).

JPFL IS CURRENTLY TRADING AT PE RATIO OF ONLY 4.87 and 6.02 (before minority interest and after minority interest respectively) DESPITE BEING LEADING PLAYER IN FLEXIBLE PACKAGING INDUSTRY.  These valuations are extremely low by any yardstick, particularly at a time when at Bse/Nse hundreds of companies (with much much smaller size/turnover) are trading at PE Ratio of 20-40.

JPFL is our Top Pre-Budget Pick. Stock is trading at 0.4xSales. FY16ECash profit 650 crores as against market cap of 2275 crores. Even if JPFL get very modest PE Ratio of 12, based upon estimated earnings for FY16, its stock price should be Rs1200 (if stock markets remain stable and do not tumble).

A large sized company available at very attractive valuations where downside is low and UPSIDE SHOULD BE HUGE

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With blessings of the Almighty, our Investment Ideas on Yes Bank, Maruti, JDL and SKS Micro have perhaps been Best performers of this week at Bse/NSE.

Willing to risk your money again on our Latest Breaking News investment idea for coming week!!

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Breaking News: Shriram Transport Finance Co Ltd

For Q3, STFL should report PAT of Rs 371 crores as against:

1.  PAT of Rs 312 crores for quarter ended Dec 2014
2. PAT of Rs 338 crores for quarter ended September 2015
3. Bloomberg estimate of Rs 351 crores

Gross NPAs should be Rs 2536 crores.

Equity Rs 226.91 crores

Hot News: Yes Bank Ltd will report 675 cr NP much ahead of market estimates. Improvement in asset quality. TP 800 Feb expiry.

Yes Bank: Press conference at 12.30. First time Rana Kapoor himself will address . Once analysts go through his presentation, stock today itself can be 720+. We advise not to sell. Yes Bank will be rerated

Result update MARUTI: Q3 NP 1020 cr against market estimate of 1388-1395cr. 

A. All brokerage houses have sharply downgraded TP of Maruti.

B. Maruti has highest ever car inventory at factory level.

C. Big hit at margin level which will not improve in Q4. Rather due to year end pressure, co may  offer higher discounts in Q4. We are afraid that NP of Q4 may be lower than Q3. And NP for Q4 March14 was 1284 crores. Maruti may report NP of 950-975 crores for Q4 as metal prices also not so benign. Thus if Maruti Q4 deteriorates yoy basis, worse for Maruti share price yet to come

Update on Maruti:
Some vested interests are spreading rumours that co will report big growth in NP for Q3 . We reiterate that co should report NP even lower than mentioned in our earlier blog. Further, 1st time in many years, co will declare results post-market which is not good corporate governance. Co don't want stock to be hammered down on expiry day? We are fairly confident that stock tomorrow should open gap down. So investors can short Feb series

MARUTI:Best Idea to go SHORT for whopping gains: Maruti will today declare results for Q3.

A. Bloomberg estimate is Rs 1388 crores NP.
B. CNBC estimate is Rs 1394 crore NP.
C. Estimates of different brokers range from Rs 1319 to 1414 crores. None estimates below 1300 crores.
Maruti had reported excellent sales nos.
However, Maruti is set to report worst profit figures of 2015:
NP for March15 quarter 1284cr.
NP for June15 quarter was 1192cr.
NP for Sept15 quarter was 1225cr.

However, today all analysts should be proved terribly off the mark as Maruti NP should be LOWER BY MORE THAN 20% (yes slippage of more than 20%) against CNBC est of 1394 cr and bloomberg est of 1388 cr and LOWEST quarterly profit of 2015. Co has suffered due to Yen factor, Royalty issue, Wage revision, launch of new models at much lower margin, flop of S-Cross etc.
TP: If market does not rise VERY SHARPLY for next few days, stock can slide to Rs 3720. In fact, Feb

2 examples of Accurate Breaking News in 2 days:

A. JUST DIAL LTD: We advised to shortsell on Monday @ 830 and 800 wala was avlbl @ 8.65. We had predicted that co will report PAT of 26 crores as against Q2 NP of 46 crores and market estimates of 36-40 cr. Co has declared 27cr NP.

2. SKS Micro: Market was abuzz that Q3  NP will be 95-120 cr. We predicted that NP will rise only 2% QoQ. And we are bang on target.

You can look forward to at least another 10 Breaking News in next 2 weeks

BREAKING NEWS:

1.  Just Dial Ltd: For Q3, JDL will report NP of Rs 26 crores as against 46 crores in Q2 and loomberg estimate of Rs36 crores. Disappointing performance.

2. SKS Microfinance: For Q3, SKS will report 2% rise in NP QoQ basis

What Does Bear Market Mean For Stocks And Shares In India?

Indian markets have fallen significantly from the March 2015 highs. In fact, from March 2015, until Jan 2016, the Sensex has dropped almost 19 per cent. Does this constitute a bear market? Nor really. If not, then how do you define a bear market. A bear market is one in which stocks fall 20 per cent from their peaks.

Let's cite this with an example. In early March 2015, the Sensex hit a peak of 30,017 points. From there, we have retreated near 19.80 per cent at 24,100 on the Sensex. If the Sensex, falls another 100 points from here, we would drop 20 per cent, which many would now term as a bear market. So, a bear market would mean a drop of 20 per cent on the major benchmark indices. What are the features of a bear market?

1)* No great momentum on the upside.* A rally in a typical bear market would lack any momentum on the upside. For example, every rally that you see would be swiftly be sold into. This is very typical of short gains that bulls try in a bear market, which is nothing, but a dead cat bounce.

 2) *Sustained downside.* The downside is rather sustained in a bear market.

In the first 3 weeks of Jan 2016, the Sensex has lost almost 7 per cent. In the entire 2015, the Sensex had lost only 16%. The selling is swift and ferocious.

3) *Mid caps plunge.* Midcap stocks plunged faster than the index stocks. This of course is talking of the obvious, as they always do. However, the fall is sharper. So far, the midcap index has fallen almost 13 per cent this year, which is almost 2 times that of the benchmark indices. 

4) *Bear markets take longer to recover.* Bear markets also take a longer to recover and enter a bullish phase. This is the most painful part for an investor, who eagerly awaits for the market to rise. How do you approach the bear market as an investor? As mentioned, bearish markets take a longer time to recover. So, you need to have the patience, if you are an investor who has bought and is sitting in losses. The first thing you should do is admit that you are in a bear market and look for hopes to recover. In terms of Psychological impact, the first would be anxiety that develops, than there is the fear and last is panic, which forces the investor to sell shares at a heavy loss. All of these are dangerous for the investor. For those who are looking at long term investment, the best strategy would be to take dividends and sit put, until you see a dramatic recovery in prices.

*Note:* With Sensex closing below 24,000 today, the fall from March 2015 has been 20.66% and this is a clear and unambiguous confirmation of a Bear Market and the end is no where in sight. The above article more or less reverberates with what I had said in one of my previous post.

PSU Banks:II

Don't rush in to buy bank stocks now unless we see stability in trading price. The prices have fallen so steeply that, even if you buy 10-15% higher from their current lows, you will still land up as a major beneficiary from the point of view of dividend yield & capital appreciation. RBI has given stiff warning to banks to come clean of NPA's and restructured assets by March 2017 and lot of skeletons are still to come out of the cupboard. *At the moment,focus on coming out of weak stocks and stay in cash**.* Opportunities will come galore 4-6 months down.

Even an excellent Budget 2017 can't help if China goes in for a second round of devaluation and US data is still running weak.  Looks like a major global economic downturn is in the offing and India cannot be an exception to this. Also, much hinges on the monsoons for India and a third drought in a row can be catastrophic to all our well laid out plans. RBI will then have to launch fire-fighting measures on two fronts -- the Indian currency (which is at 29 month low ) and inflation - majorly retail & food items, apart from chasing the banks on the NPA front. Hope Dr. Rajan gets an extension and Modi & Jaitley will have the sense to retain him.

Experience & age is on his side. More politics can be damaging to the economy. Enough of the plunder of banks during UPA I & II which is mainly responsible for the indiscriminate lending by banks to industrialists/politicians, waiver of farm loans etc. which resulted in skyrocketing of land & other asset class (including prices of stocks through the PN route).

Coming to specifics,

Canara Bank has been mauled very badly & is at a multi-year low and the way it has fallen (from a high of Rs.500) it looks like it is wilting down to Rs.140 - the price last seen in 2004.

The trading history of IDFC Bank is very limited -- about 3-4 months old. But the way bank shares are correcting, you may get the share at Rs.35 or even below

NMDC

The stock of NMDC made a 52-week low on Jan. 15, 2016 and, in the  process, has opened up possibilities of further fall/correction. While the  current low of Rs.85.55 is a decadal low for the stock, it is very  difficult to predict at what  price level the stock will bottom-out in the  future. My guess is that the next low can be somewhere between Rs.75 &  Rs.80. Though the fundamental for the stock will weaken in the next 3-4  quarters due to low growth in domestic steel sector (plagued by Chinese  imports), the low equity & zero-debt status will make this PSU Navaratna a  case for bargain hunting in view of it's high dividend payout (52.90% in FY  2014) giving a dividend yield of ~ 10% based on the 52-week closing low for  the stock. Moreover, as the govt. has high stake in NMDC (80%), it will  bank on NMDC for higher dividend payouts to shore up its Budget revenue  this year as the disinvestment programme has gone for a toss. With markets  tending to get more volatile and capital appreciation from investments getting more elusive, this stock will be an ideal investment for a value  investor due to assured (tax free) dividend income which will be higher  than the highest FD offered by any bank, private or public. And, not to  forget the capital appreciation which will accrue in the future. Looking at  it from several angles, the stock of NMDC is a safe investment in a market  which is riddled with uncertainties and falling like 9 pins (and more seems

 to be in the offing). We have now entered that phase of the investment  cycle where we need to look at asset allocation more closely  and  proactively rebalance one's portfolio.

UPDATES ON FEW OF OUR RECOMMENDATIONS

1. AMARJOTHI SPG MILLS LTD: Stock has come down to Rs 85. Fundamentals of the co are intact but big hit in broader indices is bringing down share price of Amarjothi as well. We advise not to book loss. Even otherwise, mainly we advise for investment perspective of few months and years although fellow investors are lucky to make trading profit as well in few days. You may add more at every fall.

2. GEE LTD: Share price on Friday plummetted due to desparate margin call. Hold. Once JV for land is finalised, share price will go up and go up. You may add at current levels if you can hold for 1-2 years. Stock had gone upto 58 in short period, subsequent to our recommendation

3. NTC  In our note, we had written that patience in this stock can be long. Investors will reap real multibagger gains as and when value of cigaratee license is unlocked. Hold.

4. TRIVENI GLASS LTD  : This stock had done tremendously well with back to back upper circuit for weeks. In Dec, there was upper cap of 19.90 due to Bse fatwa. Otherwise stock would have crossed 30 mark. Earlier, until few months back, daily traded volumes were in 3 digit or in 4 digit. In Dec and Jan, daily traded volumes 100% delivery touched in lacs. When stock was locked at upper circuit at 24, more than 8 lac shares were traded. Unfortunately, SASF started selling ruthlessly and sold nearly 14 lac shares in last 3 weeks. Fundamentals of TGL will continue to improve and hence, investors may add/buy more at every fall. We advise not to sell.

5. NOBLE EXPLOCHEM LTD   Daily traded volumes have been decent with HIGH delivery ratio. As plant is shut and many investors sell due to zero sales, stock is facing selling pressure. However, it provides golden opportunity to buy big quantity of NEL. Have a look at share price of Premier Explosives (which is a small co) and Solar Industries.

6. SANKHYA INFOTECH LTD Stock had almost touched 50 mark subsequent to our recommendations and subsequently fell due to 2 reasons. First, steep fall in broader indices. Secondly, a Hyderabad based company started selling Sankhya Info ruthlessly and started putting sauda even at lower circuit, causing panic amongst retail investors. However, we feel that SIL should benefit a lot from MAKE IN INDIA movement and as per our sources, some major announcement possible next month. Hence, we advise to stay invested

We may point out that several times in our articles, we have pointed out that " barring unforeseen circumstances and if markets do not fall steeply and remain stagnant/bullish". Our price targets are subject to same. Many times, our stocks remain locked at upper circuit even when market went down. But when market continues to fall and that too steeply for many days/for entire week, our recommendations are also bound to feel the pressure. But, we are fairly confident that investors with patience and with time horizon of 12-36 months should earn handsome long term capital gains

Stock Index -- Wither to?

The Sensex has corrected 18.77% from the high of 30,024.70 recorded in early March 2015 and the Nifty is down 18.50 % from it's high of 9119.

There is no sign of any worthwhile recovery in sight and Sensex & Nifty is poised to hit further lows in the days to come. A fall of 20% in the index is considered to be confirmation of a new bear phase of the market and all technical indicators suggest that the bear market has commenced from March 2015. Many of us (including me) must be sitting  on loses and, may be, we will have to nurse our wounds for quite sometime. The markets can be

merciless and the best option available to investors will be to take advantage of rallies and square up whatever positions you hold (even at a  mall loss). The bull phase is likely to be a couple of years away and it

can be a big achievement if the Nifty is able to cross 8,200 in the calendar year 2016. In between, the market will throw buying opportunities and patience should be the watchword. Many frontline shares will be available at

lucrative prices and investors will be advised to keep cash handy to buy when the time comes. The market trend can be your friend as well as your enemy depending on how you approach it and how well informed you are about

the market trends and outlook. Till things improve, let's listen to this sane advice:

*"Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid."*- Warren Buffet

What is causing PSU banks to fall

Banking stocks, especially the public sector banks, are being hammered in the markets. In fact, banks have led the recent fall in the indices and continue to do so even today. The NSE PSU Bank index has fallen from  3,235.35 to the present level of 2,312, a drop of nearly 28.5% since November 30, 2015. In comparison, the Nifty Bank index, which also has private sector banks in it, has fallen by only 12.8%, highlighting the growing diversion in valuation between the two sectors.

For example, SBI is trading at Rs 184, a level last seen in March 2014; PNB is trading close to its two-year low at Rs 91.65. Same is the case of almost every public sector bank. While it was a known fact that these banks have been saddled with high level of NPAs and analysts have generally been bearish on the sector for over a year, what is the new provocation for the sell-off?

There are two main reasons. First is the change in the base rate calculations for the bank, which was announced in early December 2015. In the guidelines, which will be effective from April 1, 2016, RBI has now introduced a more complex MCLR (Marginal Cost of Funds Lending Rate) replacing the base rate earlier. With this, RBI is now introducing a  tenor-premium-linked term structure of MCLR, which will serve as the basis to arrive at the lending rate.

Analysts expect margins of banks to contract as they will now have to pass on the changes RBI makes by cutting their interest rates. In the past, banks have not transmitted the interest rate cuts announced by the central

bank but have reduced deposit rates, thus pocketing incremental profits. But with the new norms, the banks will have to cut interest rates in line with the deposit rates, which will impact their margin.

The second reason is that RBI is now acting tough with the banks in terms of their disclosures. The central bank has identified around 150 corporates, which are currently classified as standard assets to be declared non-performing assets (NPAs).  According to CNBC, these 150 accounts are nearly 2% of total NPA and are worth Rs 1.5 lakh crore. As a result, provisioning is expected to increase by Rs 30,000 crore across the sector. But this is not enough; RBI wants banks to provide for another 6-7% of NPA resulting in provisioning to increase by around Rs 1 lakh crore.

Deutsche Bank in a report on the banking sector has said that RBI's drive to build-up contingencies will result in higher credit costs at times when NIMs are declining.  Deutsche adds that they believe that RBI will call for higher provisions on stressed assets to guard the banks against any future risks. Unrecognised stress levels are high at 12-14%. As per their estimates, banks will build about 10% provision on such exposures – likely increase of 1% of loans as provision cost spread over FY16/FY17. Deutsche expects banks’ earnings to be impacted by 5-18% for FY17.

While some might be tempted to look at valuations which look attractive, the uncertainty element is too high which is resulting in higher selling. Price to adjusted book value (P/ABV), which is the valuation parameter that is widely followed, has one element which is causing the prices to fall. No one knows how much to adjust a bank’s book. What is the mess that is there in the books of these banks.

RBI calling for providing for these assets is a good step in the long run but investors will have to go through the pains in the interim.

According to a Macquarie report titled "Indian Banks Apocalypse Now', the balance sheets of banks have become very opaque as banks try to camouflage by resorting to 5:25 refinancing, restructuring, SDR, NPL sales, ever-greening, etc, and thus looking at reported earnings has become futile in many cases. In their view, close to 16-18% of the loans which are currently shown as standard (normal or restructured) remain potential

sources of stress.

[Analyst: Shishir Asthana]

SUZLON

The enemy (read Bears) has succeeded in breaking the gate walls of the fortress which was held strongly till now and the share has closed below Rs.20 on higher volumes. Expect further downward pressure in the share price. Next supports to watch out are at Rs.18 & Rs.16. Do not get tempted to buy any share at this stage but you must *use rallies to sell*. If net-net you are able to come out of your portfolio with profit, be happy and consider yourself fortunate. The market has now entered a Black Hole and no one knows the depth of it. The Bear Market can be merciless in making you a bankrupt if you are not watchful. Give priority to CASH and *not* STOCKS.

 A bird in hand is worth two in a bush.

Amarjothi Spg Mills Ltd: A Strong Buy

RATIONALE FOR RECOMMENDATION:

1. Book Value Rs 126

2. Available at PE Ratio of 5 against Industry average PE Ratio of 17.

Thus, offers substantial scope for PE Expansion.In fact, Amarjothi has

lowest PE Ratio in textile industry presently. It is mainly due to

very very low profile of promoters

3. FY15 Eps Rs 20

4. CASH Eps substantially higher at Rs 40. Stock trading at 2.50xCash Eps

5. Stock trading at just 0.35xFY15 Sales

6. Has 18MW WIND POWER generation

7. Most modern Dyeing/processing house

8. Dividend paying

9. Consistently profit making (Amarjothi reported profits even when

almost entire textile industry reported losses few years back).

BACKGROUND:

Tirupur based Amarjothi Spg Mills Ltd is engaged in production of various types of yarn which are mainly used by knitted fabric industry:

a.  Polyester/Cotton Yarn

b.  Dyed Fibre Yarn

c. Dyed Cotton yarn

In fact, Amarjothi mainly produces Melange yarn which commands premium in the market. Moreover, co's factory is very very close to consumption centre.

Amarjothi makes wide range of speciality yarns including 100% Excel yarn, 100% Modal Yarn, 100% Viscose yarn, Cotton/Modal yarn and even Organic Cotton yarn.

Its dyeing/processing unit is located at sprawling 12 acre complex, considered one of the most modern capable of dyeing following types of fibres:

Cotton Fibre, Organic Cotton, Viscose Fibre, Modal, Polyester, Excel,Acrylic fibre etc

FINANCIAL PERFORMANCE;

                          H1/FY16     2014-15

                          Rs/Cr            Rs/Cr

Sales                  108               201

Depreciation         6.77             13.70

PAT                      5.84            13.21

Equity                   6.75

Book Value Rs      126

EPS Rs                 8.65          19.58

CASH Eps Rs                         40

Amarjothi had reported PAT of Rs 13.21 crores for FY15, translating into Eps of Rs 19.58. CASH Eps stood at Rs 40.  Stock is trading at PE Ratio of 5.

Book Value as on 30/09/2015 stands at Rs 126.

Amarjothi has 18MW of WIND POWER generation capacity. Hence, co's profit margins are higher due to captive power generation. Moreover, proximity to consumption centre also leads to substantial cost savings.

Amarjothi Spg has already reported Eps of Rs 8.65 for H1.  Amarjothi should report Eps of Rs 21 for FY16. STOCK IS AVAILABLE AT JUST 4.72xFY16Eeps.

Amarjothi Spg HAS LOWEST VALUATIONS IN ENTIRE TEXTILE INDUSTRY although company has been reporting decent profits consistently and also paying dividend regularly. Due to low profile of promoters, stock

is trading at depressed valuations. Look at the following (peer comparison)

 Company Name           PERatio

Banswara Syntex          22

Trident Ltd                    14

Sangam India               17

Suryalaxmi Cotton        11

Nitin Spinners               9

And even Book Value of Amarjothi Spg is higher than above referred peer group companies.

It is clear that once Amarjothi catches attention of investors, its valuations are bound to rise. Even if Amarjothi gets very modest PE Ratio of 9, its stock price should be Rs 180.

A soundly managed company with strong fundamentals but still available at screamingly low Valuations.  A STRONG BUY