Balmer Lawrie at record high
Balmer Lawrie & Co has been hitting new highs every single day from the 29th of November. Even today, it hit a new high at Rs.1049 and remains firmly in the green.
The market is thrilled with its very generous bonus – 3 shares for every one share held; 3:1 ratio is very generous by any standard.
Record date is 27th Dec and what you get now is a cum-bonus price.
Balmare Lawrie is a PSU wherein of the paid-up equity of the company is just Rs.28.50 crore of which 62% equity is held by Balmer Lawrie Investments, in which Central Government is holding 60% stake. This is a is a multi-divisional company engaged in Industrial Packaging, Logistic, Infrastructure & Services, Travel & Tours, Greases & Lubricants.
For Q2FY14, the company posted a net sales of Rs.428. Industrial packaging contributes 30% to income, logistics infra contributes 28%, grease and lubricants is at 26%. Travel and tours contribution has thankfully now come down to 10%. Turnover is boosted by industrial packaging while profit is boosted by logistics infra; looks like it pays to be multidivisional.
The company has ended Q2FY17 with a net profit at Rs.28 crore, up 8% (YoY). Like all PSU’s the company has a good cash balance at Rs.458 crore. The company is almost debt free and there is a miniscule interest burden of around Rs.2 crore per annum. The company has been in existence since 1867 and it is sitting on a gold mine of realty. Market cap stands at Rs.2945 crore.