Sicagen India Ltd: Fantastic Results in Q1FY10:

The results beats my estimates, as the company comes up with a net profit in Q1FY10, against a net loss considering, Y-o-Y figures.

Sicagen India Ltd came out with fantastic set of results for the Q1FY10. I have been tell all since last month about the expectation of good results of the company. Now this feat has been achieved. The total income of the company remained flat at Rs.112.64 Cr as against Rs.122.09 Cr in the same period previous year. Inspite of less other income component and higher interest cost, the net profit of the company came out to be Rs.1.394 Cr in Q1FY10 as against a net loss of Rs.4.18 Cr. Hence we now have a positive EPS against a negative EPS of Rs.1.06. Many did not believe me when I said about this last month, but now they have the figures in front of their eyes.

The company is having a huge reserves of Rs.322.29 Cr which it could use for buy back of shares from the open market. The book value of the shares of the company improved from Rs.89.5, when I first recommended 2-3 months back, to the present value of Rs.90.13. This company is from the Sical Logistic Ltd and hence investors needs not worry regarding its pedigree. The P/E of the shares of the company is 13.53 against the industry average of 43.44. Hence even by P/E analysis the natural target of the stock comes out to be XXXX (This portion for the Paid Groups), in the very short term. But if we consider other aspects like new venture and restructuring its business, then the target comes much higher (This portion of the paid groups).

Some thoughts on Kohinoor Broadcasting Corporation Ltd: Excerpts from my Sunday Report sent to the Paid Groups.

Kohinoor Braodcasting Corporation Ltd though came out with excellent results, it failed to raise the investors’ confidence. The March, 2009 quarter EPS is Rs.5.54 as against a negative EPS of Re.45. Also FY09 results are excellent as compared to FY08. The toal income of the company almost doubled to Rs.25.33 Cr in FY09, as against Rs.12.94 Cr in the same period previous year. The net profit of the company for FY09 zoomed to Rs.15.34 Cr as against Rs.11.02 Cr in FY08. For FY09, the EPS of the company is Rs.1.39 as against Rs.0.28 in the same period previous year. On a consolidated basis the results of the company for FY09 are even more better as compared to FY08.The EPS of the company for FY09 on consolidated basis is Rs.2.51 as against Rs.1.76 in the same period previous year.

Another thing which I could find in the balance sheet is that, reserves and surplus for FY09 has increased to Rs.20.07 Cr as against Rs.4.73 Cr, giving us some food for thought. The book value of the shares of the company is Rs.11.82 as against the current market price of Rs.3.78. Last time when I spoke with a number of sources, they are of the opinion that the company is doing well in the overseas market and the work on the channels is going on well.

It is to be remembered that reputed new agency Reuters India reported on 7th January, 2008, that: (a) the board of Kohinoor Broadcasting Corporation Ltd, approved buying of Tagore Theatres Ltd, valued at about 1 billion rupees (1 Billion= Rs.100 Cr) (b) It has also approved setting up a subsidiary in the U.K. to launch a television channel.