When we came out with our "Business Insight - A Wealth Creating Penny Stock (Sumeet Industries Ltd) for Nov'09" recommendation, it was our view at MPS that look for the sector which is being ignored. Some companies are always performing exceptionally well, and this gives an opportunity to get hold of them at extremely low valuations. To make a point out of it, we suggested Sumeet Industries Ltd at Rs 12-13 in Nov'09, and had very aggressively set a target of Rs 110-120 in another 18 months. It's been only two months and the current market price stands at Rs 20.45.
The target of 10-12 times was not set arbitrarily, there was some sound reasoning behind the same. It is not always easy to predict a Rs 800-850 crore turnover, when the current annual sales stand at just Rs 150 crore. However, our assumptions seem to be coming true especially with the management coming out in public and mentioning the same. As I said that the CMP stands at just Rs 20 , while our target is still away at Rs 110-120, and since the report has now been made public, one can download the same and invest to see their capital appreciate by 5-6 times (Go about your investment in a phase wise manner, since the current market correction may see the stock price correct to 17-18 odd levels).
To access the report on Sumeet Industries Ltd., that has been made public, please click Here
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A verbatim transcript of an interview with Shankar Lal Somani (Promoter, Sumeet Industries Ltd) on CNBC-TV18
You have recently got a big order of about Rs 20 crore from Egypt. When is that expected to be executed for polyester chips? When will we see a trickle in terms of your topline?
We were in the expansion project of Rs 150 crore polyester filament yarn. First part we had already completed before six months. Now we are near about completion all our expansion plans and we had already got export order of Rs 20 crore from Egypt, our new product chips.
When will this sum of Rs 20 crore reflect in your books fully?
We had already exported some quantity and will be exported within two months
Currently what is your capacity? What capacity utilization would you be functioning at? Can we expect this topline on a quarterly basis to now clock in an average basis of about Rs 100 crore was that an aberration last quarter?
We are already running at 100% capacity but some expanded capacity will be started by in this month currently. At the end of current month our capacity will be 100%
There has been a huge jump in your revenue figures and your profitability as well this quarter. What do you hope to close the year-end in terms of your revenue?
In turnover base, earlier it was Rs 125 crore. By completing this expansion, our turnover will be Rs 700-800 crore. So the turnover will be five-seven times. Turnover and profit will increase correspondingly.
- Ekansh Mittal, Lead Associate - HBJ Capital Services Pvt. Ltd
Email: Ekansh@hbjcapital.com
The target of 10-12 times was not set arbitrarily, there was some sound reasoning behind the same. It is not always easy to predict a Rs 800-850 crore turnover, when the current annual sales stand at just Rs 150 crore. However, our assumptions seem to be coming true especially with the management coming out in public and mentioning the same. As I said that the CMP stands at just Rs 20 , while our target is still away at Rs 110-120, and since the report has now been made public, one can download the same and invest to see their capital appreciate by 5-6 times (Go about your investment in a phase wise manner, since the current market correction may see the stock price correct to 17-18 odd levels).
To access the report on Sumeet Industries Ltd., that has been made public, please click Here
-----------
A verbatim transcript of an interview with Shankar Lal Somani (Promoter, Sumeet Industries Ltd) on CNBC-TV18
You have recently got a big order of about Rs 20 crore from Egypt. When is that expected to be executed for polyester chips? When will we see a trickle in terms of your topline?
We were in the expansion project of Rs 150 crore polyester filament yarn. First part we had already completed before six months. Now we are near about completion all our expansion plans and we had already got export order of Rs 20 crore from Egypt, our new product chips.
When will this sum of Rs 20 crore reflect in your books fully?
We had already exported some quantity and will be exported within two months
Currently what is your capacity? What capacity utilization would you be functioning at? Can we expect this topline on a quarterly basis to now clock in an average basis of about Rs 100 crore was that an aberration last quarter?
We are already running at 100% capacity but some expanded capacity will be started by in this month currently. At the end of current month our capacity will be 100%
There has been a huge jump in your revenue figures and your profitability as well this quarter. What do you hope to close the year-end in terms of your revenue?
In turnover base, earlier it was Rs 125 crore. By completing this expansion, our turnover will be Rs 700-800 crore. So the turnover will be five-seven times. Turnover and profit will increase correspondingly.
- Ekansh Mittal, Lead Associate - HBJ Capital Services Pvt. Ltd
Email: Ekansh@hbjcapital.com
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