JHUNJUNWALA VANASPATI

Its a stock which will remain relevant in a market boom or bust

1.   top line has  grown consecutively ver 5 Qrts- from Rs 166.94Cr in July -September 2006-07 to RS 267.24 Cr in 2007-08.

2.   EBIDTA have strengthen from 1.75% in Apr-Jun 2006-07 to 2.96% in July and Sept. 2007-08.

3.   EPS has increased fro RS 17 in 2005-06 to 18.9 in2006-07(on an equity capital of Rs. 7.5 Cr  of face value Rs. 10); annualized   EPS  was  a stunning  Rs 31 with the best quarter yet to come.

 The market cap of RS 110 Cr is attractive because:-

-   The company is the largest single unit VANASPATHI  maker in INDIA ; it accounts for 5.65% of  country Vanaspathi  market.

-    Its a market leader in UP(70%) and Bihar(23%);  its products are available on 15 states.

IN FUTURE

-   The coy is extending beyond vanapathi in its intention to emerge a complete vegetable oil provider.

-   It has commissioned its mustard and Palm oil capacities and expects to diversify  into refined  sun flower,, coconut, and ground nut oil categories.

-   It expected  to enter the business of  Agro-based  packaged foods like flour, pulses, packet tea and juices.

-   this will increase non vanaspathi revenues from 19.87% of turnover in 2006-07 to around 60% in 2009-10.

This business are expected to result in top line of Rs 1100 Cr in 2007-08, Rs 1800 Cr  in 2008-09, and 2500 Cr in 2009-10.Meanwhile, the coy equity will increase to Rs 14.5 Cr following the conversion of recent  preferential  allotments.

AND AT LAST the company expects to leverage  the 333 acres of land in varanasi with a proposal to commission   a multi-services  SEZ.

source—FUTURE STOCKS