May 15

Precision Wires

·         Book Value:                        175 Rs

·         Debt/Equity:                      0.45

·         Current Ratio:                    1.05

·         CMP:                                     90 Rs

	2013-14 Cr	2012-13 Cr	yoy
Revenue Cr Rs		976
Net Profit Cr Rs		15.95
EPS Rs		13.8
Dividend/Yield		8/9.5

·         Public Shareholding:                       40 %

·         Promoter Shareholding:                               60 %

·         Pledged/Encumbered Shares:   0%

Business:             Copper Wires

Analysis

They have taken debt to finance their investments. The dividend yield is very good. The revenue and profits are increasing around 10% yoy, over the past 5 years. The share is currently undervalued.

Pros

·         Unbelievable Dividend Yield

·         Undervalued at its current market price

·         Good increase in revenues and profits

·         Gujarat company

Cons

·         Low volume share (2k – 4k)

Buy Immediately. It is going to shoot up.

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.