Wednesday, 10 July 2013

Sakthi Finance-Fundamental Buy

Sakthi Finance
CMP(as on 10/7/13) : 11.75
Market Capital : Rs 59 crore
Promoter holding : 64.23%
Industry : Finance leasing & hire purchase
Highest Price : 35.90 on Jan 4, 2008
P/E : 4.11 as compared to industry P/E of 16.76( This means its still undervalued)
Dividend : It pays Rs 1 per share on your investment of Rs 11.75,ie, 8.50 % return on your amount. This is at par with the interest rate of FD and that too its tax free income. This is not the end. The appreciation which it will give in 5 years is excluded.
Total return in 5 years : 10%(approx) dividend each year( 50% in 5 years)+appreciation( target is rs 30 but it can vary in these 5 years. EX: it can go rs 20 in one year and again come to rs 10 again). Total Return is 250% on your invest.
Book Value : 26.80
Return on Capital Employed : 12.33%
Operating Profit Margin : 73.93%
Net Profit Margin: 10%
Note: Recently it declared dividend of RS 1 per share when price was Rs 10(approx), this means a return of 10% is already enjoyed by the holder of these stocks.

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