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

_Q3 EPS 8.73_
_Q3 PBT spurts four fold 4cr vs 1.03cr_
_Q3 NP flares by 240% at 2.62cr vs 77lacs_
*9m NP 5.45cr vs 4.90 cr full FY16*

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 good nos
for 9m and is available at very low PE Multiples
with high promoter holding and hence, the recommendation.

FUTURE OUTLOOK:

        2016-17E  2017-18E

Sales          47        65

PAT          8.29       11

*EPS Rs  27.35   36.65*

DHP is setting up a new factory to meet increased demand which is expected to be operational in July17.

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

1. DHP is trading at 10.60xFY17E Eps

2. DHP is trading at 7.90xFY18E Eps

3. *Debt Free*

4.  Promoter stake 74.37%

Even if DHP gets modest valuation of 12, stock price should be Rs 430/FY18 earnings.  Equity is so small that if big buying from HNI investors
emerges, stock can be even Rs 600 in 18 months