Your Stock Queries
5/3/2012 9:00 PM Thursday
I had purchased shares of Jyoti Structures at Rs 100 per share, but the stock price has fallen since then. Please suggest what I should do with these now.
- G. Babu, Bhopal, Madhya Pradesh
Jyoti Structures (JSL), BSE/NSE Code 513250/JYOTISTRUC, with a face value of Rs 2, is currently trading at Rs 44.80, which is at a 55 per cent discount to your acquisition cost. Its 52-week high/low stand at Rs 100 and Rs 35 respectively.
JSL provides turnkey solutions worldwide in the field of high voltage power transmission lines and substations. It offers a range of services, including the design, project management and installation of high voltage underground cables and optical fibre ground wire networks. It also engages in manufacturing prototypes, microwave towers, windmill towers and railway electrification structures, as well as in fabricating and galvanising transmission towers and structures.
For the nine months ended December 2011, its topline witnessed a growth of 12 per cent on a YoY basis, and stood at Rs 1856 crore as against Rs 1657 crore for 9MFY11. However, the bottomline witnessed de-growth of 18.22 per cent YoY, and stood at Rs 62.08 crore as against Rs 75.91 crore for 9MFY11. The stock discounts its trailing 12-month earnings by 3.79x and the EV/EBITDA stands at 2.47x. The decline in the net profit can be attributed to the 50 per cent rise in interest outgo on a YoY basis.
Currently, the power sector is in a kind of gloom as a whole, and the ripple effects of this are being witnessed in related
sectors too. We suggest that you exit the counter at present, even if you have to book losses.
Please advise as to whether I should buy shares of SRF at the current price.
- A Krishnan, Via Email
SRF, BSE/NSE Code 503806/SRF, with a face value of Rs 10, is currently trading at Rs 235.80 with a 52-week high/low of Rs 353 and Rs 231 respectively.
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