Monday, April 12, 2010

ROTO PUMPS Ltd -BUY


Roto Pumps started its operations in 1968 as a
producer of progressive cavity pumps , whose
demand met by import till then.
Company  also producing Twin Screw pumps and
Centrifugal pumps in its two most modern facilities
located at Noida.Roto distributing its products
around the globe and it has marketing offices in
Australia and UK. Company also having
strong marketing network in India.Progressive
cavity pumps are used to pump liquids with high
solid content and flow needs to be controlled .These
type of pumps are generally used in industries like
Beverages,Pharma,Food processing,dairy,Effluent and
sewage treatment and mining etc..Other type of
pumps made by the company are used in sectors
like irrigation,agriculture..etc. Half of its sales
coming from export and this itself is a testimony
for the quality of Roto’s products.Roto is going
through a capacity expansion programme and the
benefits of it will reflect in the near future.
Now company’s customers are posting good business
which will help the company too.This is one of the
cheaply valued listed player in this sector compared
with KSB Pumps,WPIL,Kirloskar Brothers,Sakthi Pumps
..etc . Roto has  a tiny equity base of 3 crore where
promoters are holding almost 70%.Last year company
posted a turnover of Rs.52 crore and a net profit
of Rs.3.3 crore and an EPS of RS.10.7 .On a continuous
basis ,for the past four years company increasing
its sales and net profit.For the nine month ended
Dec.2009 ,Roto posted an EPS of Rs.8.70/- and expected
to close the full year with around Rs.12/-.Currently it
is trading around Rs.80/- with P/E of below 7 compared
with industry p/e of 30-40.A good Buy for medium term .
Raw material price is a major factor to watch.

9 comments :

  1. VALUEPICKS sir,
    Do you track CONFIDENCE PETRO?
    Further,is GALAXY ENTERTAINMENT worth investing?
    (I need your view, sir)

    ReplyDelete
  2. dear valuepick, i entered market two years back and i wish to be a long term investor. i recently came to know about your blogs thru pss5588. it was amazing to read your recommendations. i really liked the way you are analysing the stocks. hope it will give good returns in long term. I REALLY TRUST YOU, PSS5588 AND BE & MAKE. thanks for sharing all your analysis with us. thank you. may god bless you.
    regards....Dr.Senthil, Tamilnad

    ReplyDelete
  3. and valuepick ji, is shirpur gold worth investing at the current market price. please reply. my mailid is zendeel@yahoo.com
    thank you.
    regards
    Dr.Senthil

    ReplyDelete
  4. Senthil
    reply send to your mail

    ReplyDelete
  5. Dear vv

    I am not tracking Confidence.In case of galaxy - evenif it belongs to pantaloon group and in an industry with potential in future,pantaloon seems to be not keen in reviving the company,may need a very long wait.At least partially switch to another cos.

    ReplyDelete
  6. sir,
    may I know ur views on CALS REFINARY?

    ReplyDelete
  7. Dear V

    Not interested to comment on cals refinery type pump and dump stocks here.

    ReplyDelete
  8. Surely turned out to be an offer one cannot refuse

    ReplyDelete

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