Brady & Morris

This company commenced operations in 1895 and has been listed on the BSE for over 50 years, providing project management, providing engineering add software support services for the aviation sector. It is also into marketing material handling equipments/components, importing engineering products and marketing textile machineries and components. It works closely with Airports Authority of India, Delhi International Airport and Mumbai International Airport.  All this sounds very illustrious and paints a picture of a big company. But it is anything but that. Its market cap stands at less than Rs.50 crore at Rs.36 crore and its quarterly net profit hardly every cross even Rs.1 crore-mark.

For Q4FY15, its other operating income at Rs.2.45 crore was more than Rs.2 crore it earned at net sales from operations. But this has always been the trend. PBT was at Rs.7 lakh – it went on to write back tax to the tune of Rs.28 lakh and this helped it post a PAT of Rs.35 lakh. Then it had an exceptional expense of Rs.38 crore and it ended up with a net loss of Rs.4 lakh for the quarter. Net profit for FY15 stands at Rs.2 crore on an equity of Rs.2.55 crore. Reserves stands at Rs.12 crore. Despite the dismal numbers, it enjoys good immense fancy, given the fact that it is currently quoted at Rs.140 levels. Promoters stake in Q4 has come down sequentially from 74.26% to 73.76%.  Maybe the market mistakes it to be a MNC or expectation of a bonus – the PE of over 15 (EPS of Rs.9 for FY15 on FV of Rs.10/share) is a surprise for a company with such low earnings and market cap.