vishnuvega
22-11-2007, 07:20 AM
Rajendra Mechanical Inds. Ltd is part of the Mumbai based REMI group, is a pioneer in manufacturing of stainless steel welded and seamless pipes & tubes. These pipes and tubes are used extensively in critical process industries such as refineries, petrochemicals, paper & pulp, fertilizers, pharmaceuticals, nuclear plants, etc. IOCL, IPCL, GNFC, IFFCO, Madras Refineries, Mangalore Refineries, Ranbaxy Laboratories are few of its reputed clients. It has also developed specialised stainless steel tubings especially for the critical power industry. To cash in on the increasing demand, the company has been constantly expanding its production capacity which now stands at 7500 MTPA from 4500 MTPA in 2005. Notably, the company has also ventured into power generation through wind mills and has total installed capacity of 2.25 MW. With the expansion effect kicking in, the company has reported stunning numbers for Q1 and Q2 of H1FY08. For the Sept.’07 qtr., sales jumped up 90% to Rs.55 cr. whereas net profit tripled to Rs.2.30 cr. Accordingly, it can register a net profit of Rs.6.50 cr. on sales of Rs.200 cr. for FY08, which will lead to an EPS of Rs.14 on its equity of Rs.4.80 cr. However, this profit excludes extraordinary item of Rs.1.50 cr. - profit on sale of property. Otherwise, the EPS works out to Rs.17. Moreover, it has the potential to earn an EPS of Rs.20 for FY09 from business operations only. A good bet for the medium to long-term.