Monday, August 16, 2010

Value Picks - Equity Investing: Empee Distilleries (NSE Symbol - EDL)

Value Picks - Equity Investing

Empee Distilleries  (NSE Symbol - EDL)

  • At Rs149 it has a market cap of 281 Crores
  • It holds 2.81 Cr shares of Empee Sugars with market value (at CMP 66) of 185 Crores
  • Company made a profit of about 12 crores in Q1 FY11  (double that of Q1 in FY10)  and eps of 6.2 Rs per share (non annualized and standalone). 
  • It had reveneues of 900 Cr in FY10
Net value attributed to the business appears to be very low. The promoters have been recently increasing their share through open market purchase. Represents an excellent value buy and can be a multibagger especially if the company can improve its profits even marginally and improve investor awareness.

What makes it even more attractive is the high dividend yield.It has announced a dividend of 6 Rs/Share, which gives it an high dividend yield of 4% (tax free) certainly higher than your savings account which gives 3.5% yield (before interest)

1 comment:

Mayur said...

Sir ,
If it has zero debt hen it could have became compelling value buy but company has debt of 505 crores . So there is not much value in it.


A Value Investor
http://value2wealth.blogspot.com/

Blog Widget by LinkWithin