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Date:
November 19, 2008
Ref. No. MPML/BB/198/058/2008
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Dear
Sir,
After
consecutive 2 bad days in this week, today SENSEX has recovered
250 points. It has been a roller costar ride for all the investors
in Global share markets. Markets are falling down. In this market
fundamentally strong companies are also hit badly in recent Global
turmoil. As per current scenario this is the best time to invest
in share markets.
There are some companies that have outstanding records and are
performing very well. One such company called Gujarat NRE Coke,
a cocking coal and Met coal producing company. The company has
always posted excellent results. In this Sep Q2 Total
Income has shown a jump of 4.86 times from Rs.102.07
crores to Rs.496.05 crores, resulting in a surge of 8.19
times in the Net Profit, from Rs.12.55 crores to Rs.102.75
crores. We suggest you buy Gujarat NRE coke on every decline.
Gujarat NRE Coke Ltd. :
| CMP |
25 |
| 52
Week High |
129 |
| 52
Week low |
22 |
| Market
Capital |
19347
Cr |
| P/E |
3.77 |
| B/V |
23.77 |
Gujarat
NRE Coke is engaged in manufacturing of low ash metallurgical
coke for the steel industry, soda ash plants, zinc smelters
and foundries. The primary activity of the company
is manufacturing low ash metallurgical coke (LAMC). It is
the largest non-captive manufacturer of low ash metallurgical
coke in India. Coke is the basic raw material for production
of Steel.
Gujarat NRE Coke, the country's largest independent producer
of met coke, posted results that not only stood out
amidst the current pall of gloom, but also refurbished the
company's image as an achiever, a perennial performer. In
the current half year, the company has continued with its
dream run and has posted substantially improved figures on
all counts - Total Income has gone up by 3.48 times
from Rs.250.96 crores in the six months ended 30.09.07 to
Rs.873.69 crores in 30.09.08, while the Net Profit after Tax
has moved up from Rs.55.37 crores to Rs.197.15 crores, posting
a jump of 3.56 times.
On a quarterly basis, the results are
even more impressive: quarter on quarter, the Total
Income has shown a jump of 4.86 times from Rs.102.07
crores to Rs.496.05 crores, resulting in a surge of
8.19 times in the Net Profit, from Rs.12.55 crores
to Rs.102.75 crores.
The company's mining operations
in Australia are doing extremely well with one million tons
of premium hard coking coal expected to be shipped to India
in the current fiscal.
It is also developing its mines in Australia to further increase
its production to seven million tons within the next four
years. Gujarat NRE Coke is also in the process of
setting up co-generation facilities in all its plants which
will provide the company with 60 MW of free power.
The
demand for cooking coal will keep on rising in future. Gujarat
NRE has three coke making units in India - Khambhalia and
Bhachau in Gujarat and at Dharwad in Karnataka - which produce
close to one million tones of met coke.
Being
the biggest player in Coke production Gujarat NRE coke proved
to be the best performing company. The stock is trading at
attractive levels. In this falling market we suggest you to
buy this stock on every decline.
Awaiting
your Quick Response.
Thanks & Regards,
PMS Department
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