Samkrg Pistons

30 year old Samkrg Pistons and Rings manufacturers engineered pistons, piston pins and piston rings for gasoline and diesel internal combustion engines, in the 35 to 130 milli-meter diameter range, which are used in scooters, motorcycles, cars, tractors, light commercial vehicles, stationary engines and other special applications.

For nine months ended 31st December 2015, revenue stood at Rs. 180 crore with net profit of Rs. 13.6 crore, leading to an EPS of Rs. 13.85, which is higher than full year FY15’s EPS of Rs. 12.76. This was achieved on back of strengthening net margins to 7.54% during 9mFY16, from FY15’s 5.3% net margins.

Q3FY16 revenue came in at Rs. 60 crore and net profit Rs. 4.4 crore, lead by improved net margin of 7.35%. EPS for the third quarter stood at Rs. 4.50. As on 30th September 2015, company had reserves of Rs. 77 crore, resulting in net worth of Rs. 87 crore and BVPS at Rs. 88. Total debt is only Rs. 14 crore (mainly short term), and net of cash is Rs. 13 crore, indicating debt equity ratio of just 0.15:1.

The stock was recommended by us at Rs.144 in March with potential to touch 190 in the next 6 months, translating into 30% returns during this period.