Friday, November 9, 2007
ALPS INDUSTRIES : DEEPAWALI PICK
Alps Industries is a gem of a stock currently trading at dirt cheap prices. It has delivered a half year EPS of rs. 5.52 and projected EPS for full year is 11-12 rupees. The company is the owner of the well known Vista brand of window dressings and its book value is nearly 88 rupees. The stock is currently trading at a huge discount to its Book Value around the price of 46-47. In my opinion this company deserves a PE rating of at least 12, so Fair Value of this stock should be 12x12=144. It is reported that Clearwater Capital Partners has bought 3 lakh shares at Rs 47 per share (1.54 % stake) very recently. Promoters of the company and FIIs have upped their stake in the company considerably during the last one year. Alps Industries presents a huge upside potential from current levels.