NAERING TARGET: Undiscovered by market (Conart Engineers)

CONART touched a high 41.80 today, nearing my target of 44 (CMP 37.5). Hold till target is met. But this was a long term call; I did not expect it to nearly meet its target in just 1 month.

 

I hope some of you had made money on this..to reduce risks you can book around 25% profits.

 

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On Mon, Sep 13, 2010 at 6:48 PM, POWERFULPICKS POWERFULPICKS <powerfulpicks@gmail.com> wrote:

powerfulpicks long term buy call: This script (Conart Engineers, BSE only) has been largely undiscovered by our investors. When a company declares dividend after many years, it is surely a bullish sign for the script's price. I really do not know how the market is ignoring a profit making company with a dirt cheap P/E of 5.3 and a low P/BV of 0.74 with a good history of performance and an unbelievably good debt equity ratio of 0.53:7.70, which makes it a very safe investment. Can you believe that their sales and EPS increased even during the recession year of 2008 and also during 2009 and 2010? The company's fat list of renowned clients will make you raise your eyebrow: Apollo Tyres, Alstom Projects, ABB, ABS Industries, Camlin, Glaxo, Advani Oerlicon. The company is a Mumbai based construction company specializing in Industrial, Commercial, Residential  projects and roads and bridges and is managed by the Sura family, which has a rich experience in engineering. For the last
financial year, turnover was Rs 27 crores with a net profit of Rs 1.6 crores and an EPS of Rs 5.5. EPS of 5.5 for a company with a market cap of just Rs 8 crores is quite commendable. The order book looks quite fat at Rs 50 crores at 1.85 times of the latest annual turnover.

Buy on dips around 29.5 for a target of 44 in 12 month time frame (+49%). There are some rumors on acquisition; I did not consider such unconfirmed news in my assessment of this nicely undiscovered company. I also do not own this stock at present, but may consider investing after sending this note to the group.