May 12

Arman Financial Services

·         Book Value:                        35 Rs

·         Debt/Equity:                      1.65

·         Current Ratio:                    0.9

·         CMP:                                     17.5 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	24.5	16.8	45.8 %
Net Profit Cr Rs	4.5	3.3	30 %
EPS Rs	7.23	6.8
Dividend/Yield	1 / 5.5	0.8 / 3.9

·         Public Shareholding:                       70 %

·         Promoter Shareholding:                               30 %

·         Pledged/Encumbered Shares:   0%

Business:             Finance including NBFC’s             

Analysis

It is one of the most underrated shares. This year it has doubled its turnover and has a good increase in its net profit. This year they have raised money by selling preferential shares. Financially the stock is sound and the price is at its right place to buy.

Pros

·         Good Dividend Yield

·         Current market price is far below its actual price

·         Good growth in revenues and profits this year

Cons

·         Low volume share

·         Increased Debt

Buy for Long term only

Pradeep Metals

·         Book Value:                        17.5 Rs

·         Debt/Equity:                      1.36

·         Current Ratio:                    0.73

·         CMP:                                     18.5 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs	112	125	-10 %
Net Profit Cr Rs	5.7	4.4	30 %
EPS Rs	3.3	2.6
Dividend/Yield	1.2 / 6.5	1 / 7

·         Public Shareholding:                       32 %

·         Promoter Shareholding:                               67 %

·         Pledged/Encumbered Shares:   0%

Business:             Auto parts and Equipments

Analysis

The revenue has decreased compared to last year, but the net profit increased due to decrease in finance costs. The company has repaid its debts and released 6% of its pledged shares. The company has good financials, but has to check out its future plan.

Pros

·         Good Dividend Yield

·         Good Market price

·         Repaid its debts

Cons

·         Low volume share

·         Decreased Revenue

Buy for Long term only

Disclaimer:
These recommendations are my own and I might or might not have a interest in these shares. Please take this recommendation as a suggestion and do your own research before investing.