Follow me on Twitter

Tuesday, July 24, 2007

Investment Pick : SATNAM OVERSEAS (KOHINOOR FOODS)

Satnam Overseas (Kohinoor Foods) presents excellent value for money at current mkt price. Having posted an eps of rs. 11 plus for 2006-2007, this share is trading at a very low single digit PE. Dividend of 10% has also been declared. Since this company is primarily in the exports of Basmati Rice and other Processed Foods, the stock price is currently depressed because of the depressed dollar value against the rupee. But going forward, the future should be good for this company. Excellent BUY at current levels and one can expect minimum 50% appreciation within one year.

1 comment:

Yogendar said...

Hi Superstar,

one more query.
Plz tell me why are u so bullish on this stock. Although the stock price is quite low but is it really an opportunity to double triple the money.
The 1st quarter profit was 4.2 Cr (last financial year the first quarter profit was close to 5 Cr). Then why should this stock shoot up to double its value in 6 to 12 months. Are there any tie ups or big orders for Kohinoor foods.
In comparision to this Lakshmi and foods limited has more than doubled its net profit to 32 cr in the first quarter (Net total profit for last fin year was 42 cr) although this stock shot up in last few months.

Plz advise,

Best Regards,
Yogendar