Hercules Hoist
This company has got nothing do with cycles or Atlas Cycles. Somehow it is always mistaken for the Hercules brand of cycle. The company is a specialist in manufacture of material handling equipments under INDEF brand. 69.53% stake in the company is held by the Rahul Bajaj group with Bajaj Holding having a 19.53% stake. Given its veritable parentage, the company’s clientele includes the crème de la crème - M&M, Tata Motors, Maruti Udyog, Bajaj Auto, Ford India, Escorts, SAIL, Jindal Ltd., Bokaro Steel, Tata Steel, L&T, Ambuja Cements, ACC and more. It also has four windmills of 1.25 MW each.
The stock had yesterday hit a new 52-week high at Rs.147.15, in fact it has been hitting new highs consistently for the past few days. This might have been a build up for the Q4 numbers but they came in pretty disappointing. It posted a net profit of Rs.2 crore v/s Rs.4 crore in previous Q4 and Rs.5 crore in Q3. This drop in profits began right at the top – net sales dropped 10% (YoY) at Rs.27 crore. Things got aggravated further with operating costs soaring – they came in at 96% of the net sales for Q4Fy14 v/s 90% in previous Q4. The company ended the fiscal also on a lower note, with net profit at Rs.20 crore v/s Rs.28 crore in FY13.
The company is debt free and equity is tiny at Rs.3.20 crore. Reserves as at 31st March 2014 stands at Rs.157 crore. EPS stands at Rs.6 (FV at Re.1), discounting the current price by over 23 times.