Financial Daily from THE HINDU group of publications
Tuesday, Aug 24, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 24, 2004 |
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Markets
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Stock Markets Goetze gains on value buying Our Bureau
Kolkata , Aug. 23 THE GOETZE India Ltd (GIL) stock is gaining in favour with certain market players, who are looking for mid-cap counters with low P/E ratio. The stock on Monday surged 10 per cent and closed at Rs 88, the intra-day high on the BSE. The stock's 52-week high on the exchange is Rs 104.30. On the BSE, the counter had a trading volume of 58,329 shares, up from Friday's quantity of 4,920 shares. On the NSE, 56,991 shares were traded against 9,373 on the previous trading session. At today's closing price, the stock traded at 13 times its trailing 12 months earning of Rs 6.40. According to analysts, technically and fundamentally, the stock is on a strong wicket. Goetze India recorded a growth of 20 per cent in net profit at Rs 4 crore for the quarter ended June 2004, from Rs 3.3 crore. Net sales recorded 13 per cent growth to Rs 95 crore. GIL is a leading player in the piston ring segment. It manufactures a wide range of piston rings for two-wheelers, tractors, passenger cars and jeeps, commercial vehicles (HCV's, MCV's & LCV's), locomotive engines, stationary engines. It has two plants - one in Patiala and the other in Bangalore. With technical input from its German partner, GIL has started making high-value rings, which fetch higher margins, Mr Devarsh Vakil of Anagram Stockbroking pointed out. "Goetze commands over half the market for piston rings and cylinder liners and has a strong presence in the replacement segment, which constitutes two-thirds of the total market for piston rings", he added. GIL also supplies rings to stationary diesel engines and air/gas compressor manufacturers. It also manufactures cylinders and cylinder liners. GIL has diversified into the solvent oil extraction business and trading in leather garments. The leather division has been in operation for the last 5 years and has already made a name for itself in the international market especially in Europe. Its factory, equipped with the latest PFAFF machines with the conveyor system of manufacturing, is located in New Delhi. It produces nearly 7,500 garments per month. Nandas hold 27.21 per cent stake in GIL and Federal Mogul - Vermogensverwaltungs GmbH holds 25.46 per cent. The public holding is at 15.35 per cent.
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