Nitta Gelatin

This company has a technical collaboration with Japanese company, Nitta and they hold equity too – a good 42.96% and Kerala State Industrial Development Corporation (KSIDC) holds 31.53%. So 74.48% stake is held by these two promoters. There is no FII holding.

The company has posted a very good performance for Q2FY16. Net sales was down 2% (YoY) at Rs.88 crore but a 3% lower cost led by a 10% drop in power & fuel cost helped shore the bottomline. Interest outgo halved from Rs.2 crore to Rs.1 crore. Exports comprise over 50% of total sales though it was down 8% in current Q2 and domestic sales also fell 5%.

So the good part about the performance? It ended H1Fy16 with a net profit of Rs.5.21 crore, which has already surpassed FY15 net profit of Rs.5.10 crore. Equity is small at Rs.9.08 crore and reserves stand healthy at Rs.112.52 crore. Market cap is at Rs.120 crore. Annualised EPS is at Rs.10.52 and this discounts the current price by around 12 times.