Financial Weekly

SMART 17th January 2021 to 23 rd

January 2021 15
INVESTMENT

SMART
BUY OF THE WEEK
Dark Horse
Dark Horse-1
HISAR METAL INDUSTRIES LTD
(590018 & NSE) (107) (Face Value Rs.10)
Ready for multi-year break out
Incorporated in 1990, Hisar based Hisar
Particulars 3 Months Ended
Metal Industries Limited manufactures and
sells cold rolled stainless steel products in Q2FY21 Q1FY21 % Var.
India. It offers stainless steel strips for use in Sales 38.54 15.31 152%
automotive parts, cameras, clamps, engine Op. Profit 3.13 0.98 219%
gaskets, fiber optics, floppy disks, food pro- PBT 1.35 -0.74 -
cessing products, metal hoses, needles, PAT 1.20 -0.74 -
packing products, pens, piston rings, rings,
shoe inserts, thermometers, and watch bands. The company also exports its products to Australia,
the United States, China, Pakistan, Bangladesh, Korea, and Germany. Company has its own cap-
tive power supply to sustain internal consumption.
It has an equity base of just Rs.5.40 crore that is supported by reserve of around Rs.22.51 crore.
The Promoters hold 56.11% while the investing public holds 43.89% stake in the company.
For Q2FY21, its PAT stood at Rs.1.20 crore on sales of Rs.38.54 crore fetching an EPS of
Rs.2.22. Its H1FY21 production was affected due to Covid led disruption but H2FY21 will be a
bumper for this company as we have seen fantastic numbers from many steel companies like
TATA STEEL LONG PRODUCTS.
It has paid 10% dividend for FY20.
Investors can accumulate this stock with a stop loss of Rs.90. It may give very good returns in
medium to long term. Cont....
Financial Weekly

SMART 17th January 2021 to 23 rd

January 2021 16
INVESTMENT

Dark Horse-2
EVEREST ORGANICS LTD
(524790) (270) (Face Value Rs.10)
Everest Organics Limited is a fast growing Particulars 3 Months Ended
API and Bulk drug manufacturing company Q2FY21 Q2FY20 % Var.
with world class facility and is committed to Sales 44.94 39.99 12%
manufacturing excellent quality products and
Op. Pr. 6.42 4.33 48%
customer service. The Company produces
Active Pharma Intermediates "APls" for qual- PBT 4.91 3.01 63%
ity conscious customer around the globe. PAT 3.88 1.89 105%
Everest Organics Limited supports
customers with unique value, niche
products range and research
driven approach. The USFDA ap-
proved API facility in Hyderabad
manufactures and exports various
APls products to more than 40
countries as well as caters to local
demand in market in India.
EOL has an equity base of Rs.8
crore that is supported by reserves of around Rs.32.86 crore. The promoters hold 74.04% of the
equity capital, which leaves 25.96% stake for the investing public.
For Q2FY21, it posted 105% higher PAT of Rs.3.88 crore on higher sales of Rs.44.94 crore
fetching an EPS of Rs.4.85. For H1FY21, it posted 45% higher PAT of Rs.7.46 crore on higher
sales of Rs.88.13 crore and an EPS of Rs.9.32.
Currently, the stock trades at a P/E of just 15.9x.
Investors can accumulate this stock with a stop loss of Rs.240. It may give very good returns in
medium to long term.

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