Date:11/04/2006 URL: http://www.thehindubusinessline.com/2006/04/11/stories/2006041102741500.htm

Back Value buy seen in Vardhaman Ind

Some value pickers appear to have zeroed in on Vardhman Industries for its low market capitalisation (only around Rs 30 crore) vis-à-vis its performance (05-06 expected turnover is Rs 300 crore plus).

With the steel sector back in the reckoning and the company's projected growth plans, the market expects this manufacturer & exporter of S G/ductile iron castings, forged products and auto parts, to notch up an EPS of Rs 10 in 2006-07. According to dealers, its upcoming 68,000-tpa billet plant and 41,250-tpa colour-coating unit as also a 10-MW power plant have raised strong hopes for an upside. The stock closed 9 per cent up at Rs 37.50 (volume 93,408 shares) on the BSE. In the last one week, the stock gained 35.14 per cent.

During the 9-month ending on December 31, 2005, Vardhman's turnover was at Rs 177.85 crore, net profit Rs 4.74 crore and cash profit Rs 6.04 crore.

Jayanta Mallick