Sunday, October 31, 2010


Earlier Recommended as a BUY @ Rs.80 and BOOK PROFIT above  Rs.125/-

Reiterating BUY @ CMP of Rs.99/-

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 Six month ended
September 2010 ,Roto posted an EPS of Rs.8.80/- 
A good Buy for long term at CMP below Rs.100/-
Raw material price is a major factor to watch.

1 comment :

  1. Value Pick Sir,
    Request opinion on Firstobject. Good results last year and also in both qtrs this year. BV-12 against CMP of 26 /-. Other latest developments :-
    - COO, Mrs.C.V.S. Lakshmi Kameswari Receives Rajiv Gandhi Excellence Award - 2010.

    - Approved 1st Interim Dividend for 2010-11, equivalent to 0.5% on face value of Rs. 10/- share.

    - The Company and Dr. Vivek Hebbar, Chairman of the Company have been selected for Bharat Vikas Ratan Award. Two Awards, one for the Company and one for the Chairman of the Company, Dr.Vivek Hebbar, will be given at New Delhi on November 30, 2010.

    Request ur opinion for entry into stk and if possible what would be the ideal entry level.



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