ViJiT
Vijith Pujari
Su-Raj Diamond and Jewellery Ltd. (Code No: 507892) - Rs.61
Incpororated in 1985, Su-Raj Diamonds and Jewellery Limited (SDJL) is the flagship company of the Su-Raj Group founded in the early Sixties. It went public in 1986 and was the first diamond company to do so. SDJL's core business includes manufacture and export of gold, silver & platinum jewellery studded with diamonds, colour stones and semi-precious stones as well as plain jewellery. In fact, it is one of the country's largest manufacturer and exporter of polished diamonds and also a leading player in the international fine gold jewellery market.
SDJL has nine state-of-the-art manufacturing facilities across the country equipped with machining, facilities and processors that ensure quality merchandise and timely delivery. Its new plants at Bangalore, Kolkatta and Goa boast of the most modern facilities like latest casting machines, CAD/CAM design tools, laser engraving and welding, RPT machine for model making etc. Its team of nearly 100 passionate professionals churns out more than 700 new designs every month making its jewellery comparable with the best standards prevailing in Europe and USA. Besides, all its products are 'Hallmarked' guaranteeing its purity. SDJL is a 'star trading house' with a global footprint and a marketing network spanning New York , Antwerp , Bangkok , Hong Kong, UAE and Los Angeles. Presently, the company is focusing more on markets like the oil rich middle. Visualising the huge domestic potential, SDJL is also positioning itself in the domestic retail segment through its subsidiary and associate companies. Su-Raj Diamond Dealers Ltd. and Forever Precious Jewellery and Diamonds Ltd. Forever Precious is a major player in the B2B jewellery market in India. For the overseas market, its acquisition of Koradiam N.V. in Antwerp in Belgium is being used as its jewellery retail face. The company is also setting up jewellery manufacturing units in special economic zones (SEZs) in Kochi and Kolkata. Since the early Nineties, Jewellery has averaged a growth of over 30%, making India the fastest growing Jewellery exporter in the world. In an industry where market reputation is the key asset, the company has carved a niche for itself with its professional set-up and transparent operations. It has an unmatched dividend paying record and has even paid as high as 40% dividend. For FY06, company is expected to clock a turnover of Rs.1175 cr. and NP of Rs.36 cr. which translates into EPS of Rs.9. For FY07, it can report Rs.11~12 EPS. Apart from this, it has huge reserves of more than Rs.450 cr. i.e. a book value of around Rs.125. With the Gems and Jewellery sector buzzing along with the listing of Gitanjali Gems, investors can accumulate this scrip with a price target of Rs.100 in 12~15 months.
PAE LTD (Code No: 517230) - Rs.14
PAE Ltd was incorporated on 13th July 1950 at Mumbai as a wholly owned subsidiary of The Premier Automobiles Ltd (PAL), primarily to manufacture steering wheels, dashboards, bumpers, seats etc., trading and marketing automotive products, servicing of cars and fitting of air conditioners in automobiles. But consequent to the public issue of equity shares in February 1990, the company ceased to be a subsidiary of PAL. It was earlier know as Premier Auto Electric Ltd but subsequently it changed its name to PAE Ltd. in 2003. Today, it is one of India's largest and most professionally managed Marketing & Distribution company in the automotive component industry. PAE's product range basically consists of two divisions i.e. Power division and component division.
Under Power Division, it deals in various automotive batteries for two wheelers, four wheelers, LCVs etc and is an authorized distributor for Exide batteries. It also markets big industrial batteries for railways, telephone exchanges etc. It has launched a huge range of Inverters and UPS which have excellent growth potentials. Under its Component Division, PAE represents renowned and respected names from the Indian auto components industry almost all ISO certified. This division is engaged in marketing and distribution of wide range of small and big auto components of well known manufacturers like Gabriel, Ceekay, Finolex, Enfield, Acdelco etc. Apart from being a distributor for MICO, it also markets oil & lubricants from ESSO. Being a five decade old company, PAE has a strategically located and enviable network of 31 branches and 10,000 dealers with a total strength of more than 200 employees. To increase the market share of its products, garage campaigns and dealer meets are organized. Company has also organizes training camps for mechanics and electricians to impart them know-how on the latest products & technologies. It also carries out regular and systematic studies of the market, dealer potential and improvement in the current market reach.
For PAE, building on trust is a tradition that ensures perennial supply of genuine spares and excellent after sales service at all times. Higher household income reduced Duty, easier finance; lower interest rates have motivated consumers to purchase new vehicles, which has resulted in an increased demand for its products. Moreover, due to change in its focus to more profitable products, its profit-margins have improved. For the nine month ending 31 Dec 2005, its OPM has tripled to 1.50% from 0.50% earlier. For the full year FY06, it may report sales of Rs.140 cr. and NP Rs.1.35 cr. i.e. EPS of Rs.1.40 on its current equity of Rs.9.50 cr. For FY07, it can report an EPS of Rs.2. Its promoters Premier Ltd holds 41% of stake and its current book value stands at Rs.33. Being a small company with a very low NPM, the company enjoys a market cap of only Rs.13 cr. Interestingly in 1994, the company had allotted shares to MF's @ 125 and with its 52W high of Rs.32 and low of Rs.12, it seems a relatively safer bet in the currently overheated market.
Incpororated in 1985, Su-Raj Diamonds and Jewellery Limited (SDJL) is the flagship company of the Su-Raj Group founded in the early Sixties. It went public in 1986 and was the first diamond company to do so. SDJL's core business includes manufacture and export of gold, silver & platinum jewellery studded with diamonds, colour stones and semi-precious stones as well as plain jewellery. In fact, it is one of the country's largest manufacturer and exporter of polished diamonds and also a leading player in the international fine gold jewellery market.
SDJL has nine state-of-the-art manufacturing facilities across the country equipped with machining, facilities and processors that ensure quality merchandise and timely delivery. Its new plants at Bangalore, Kolkatta and Goa boast of the most modern facilities like latest casting machines, CAD/CAM design tools, laser engraving and welding, RPT machine for model making etc. Its team of nearly 100 passionate professionals churns out more than 700 new designs every month making its jewellery comparable with the best standards prevailing in Europe and USA. Besides, all its products are 'Hallmarked' guaranteeing its purity. SDJL is a 'star trading house' with a global footprint and a marketing network spanning New York , Antwerp , Bangkok , Hong Kong, UAE and Los Angeles. Presently, the company is focusing more on markets like the oil rich middle. Visualising the huge domestic potential, SDJL is also positioning itself in the domestic retail segment through its subsidiary and associate companies. Su-Raj Diamond Dealers Ltd. and Forever Precious Jewellery and Diamonds Ltd. Forever Precious is a major player in the B2B jewellery market in India. For the overseas market, its acquisition of Koradiam N.V. in Antwerp in Belgium is being used as its jewellery retail face. The company is also setting up jewellery manufacturing units in special economic zones (SEZs) in Kochi and Kolkata. Since the early Nineties, Jewellery has averaged a growth of over 30%, making India the fastest growing Jewellery exporter in the world. In an industry where market reputation is the key asset, the company has carved a niche for itself with its professional set-up and transparent operations. It has an unmatched dividend paying record and has even paid as high as 40% dividend. For FY06, company is expected to clock a turnover of Rs.1175 cr. and NP of Rs.36 cr. which translates into EPS of Rs.9. For FY07, it can report Rs.11~12 EPS. Apart from this, it has huge reserves of more than Rs.450 cr. i.e. a book value of around Rs.125. With the Gems and Jewellery sector buzzing along with the listing of Gitanjali Gems, investors can accumulate this scrip with a price target of Rs.100 in 12~15 months.
PAE LTD (Code No: 517230) - Rs.14
PAE Ltd was incorporated on 13th July 1950 at Mumbai as a wholly owned subsidiary of The Premier Automobiles Ltd (PAL), primarily to manufacture steering wheels, dashboards, bumpers, seats etc., trading and marketing automotive products, servicing of cars and fitting of air conditioners in automobiles. But consequent to the public issue of equity shares in February 1990, the company ceased to be a subsidiary of PAL. It was earlier know as Premier Auto Electric Ltd but subsequently it changed its name to PAE Ltd. in 2003. Today, it is one of India's largest and most professionally managed Marketing & Distribution company in the automotive component industry. PAE's product range basically consists of two divisions i.e. Power division and component division.
Under Power Division, it deals in various automotive batteries for two wheelers, four wheelers, LCVs etc and is an authorized distributor for Exide batteries. It also markets big industrial batteries for railways, telephone exchanges etc. It has launched a huge range of Inverters and UPS which have excellent growth potentials. Under its Component Division, PAE represents renowned and respected names from the Indian auto components industry almost all ISO certified. This division is engaged in marketing and distribution of wide range of small and big auto components of well known manufacturers like Gabriel, Ceekay, Finolex, Enfield, Acdelco etc. Apart from being a distributor for MICO, it also markets oil & lubricants from ESSO. Being a five decade old company, PAE has a strategically located and enviable network of 31 branches and 10,000 dealers with a total strength of more than 200 employees. To increase the market share of its products, garage campaigns and dealer meets are organized. Company has also organizes training camps for mechanics and electricians to impart them know-how on the latest products & technologies. It also carries out regular and systematic studies of the market, dealer potential and improvement in the current market reach.
For PAE, building on trust is a tradition that ensures perennial supply of genuine spares and excellent after sales service at all times. Higher household income reduced Duty, easier finance; lower interest rates have motivated consumers to purchase new vehicles, which has resulted in an increased demand for its products. Moreover, due to change in its focus to more profitable products, its profit-margins have improved. For the nine month ending 31 Dec 2005, its OPM has tripled to 1.50% from 0.50% earlier. For the full year FY06, it may report sales of Rs.140 cr. and NP Rs.1.35 cr. i.e. EPS of Rs.1.40 on its current equity of Rs.9.50 cr. For FY07, it can report an EPS of Rs.2. Its promoters Premier Ltd holds 41% of stake and its current book value stands at Rs.33. Being a small company with a very low NPM, the company enjoys a market cap of only Rs.13 cr. Interestingly in 1994, the company had allotted shares to MF's @ 125 and with its 52W high of Rs.32 and low of Rs.12, it seems a relatively safer bet in the currently overheated market.