*Debt Free Engineering co available at attractive valuations: DHP India Ltd*

Calcutta based DHP India Ltd is engaged in production of Valves and
other accessories used in gas cyliners.   Gas cylinders are used by
all OMCs like HPCL, BPCL, Indian Oil. DHP has reported fabulous nos
for Q1 and is available at very low PE Multiples and only 1.1xBook
Value with high promoter holding and hence, the recommendation.

FINANCIAL PERFORMANCE:

      Q1/FY17   Q1/FY16      

Sales     10.67      9.42            

PBT         1.80     0.93              

PAT        1.32       0.63              

Equity                   3.00                  

                                   

Book Value Rs                                       119/

Eps Rs     4.40          2.09            

DHP India had reported EPS of Rs 16.34 for FY16 and stock is available
at PE Ratio of 7.90xFY16 Eps

FUTURE OUTLOOK:

DHP has reported fabulous for Q1 wherein Sales have gone up by 10% but
PAT has flared up 100% from 63 lacs to 1.32 crores. Q1 EPS is Rs 4.40

           2016-17E  2017-18E


Sales          44            48

PAT             6.60        7.80

*EPS Rs        22           26*

DHP India, in the field of high precision engineering, is an
attractive buy considering:

1. DHP is trading at 5.85xFY17E Eps

2. DHP is trading at 4.96xFY18E Eps

3. CMP is 1.10xBook Value

4. *Debt Free*

5. As per Graham method, valuation of co works out to Rs 210 per share

6.  Promoter stake 74.37%

Even if DHP gets modest valuation of 12, stock price should be Rs 250
at least. Equity is so small that if big buying from HNI investors
emerges, stock can be even Rs 400 in 18 months