Sunday, March 6, 2011


Company                  : ROTO PUMPS
BSE Code                  : 517500
Group/Index           : B
CMP                          : Rs.86/-
FV                              : 10
Recommendation    : 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 ,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 December 2010 ,Roto posted an
EPS of Rs.13/-  Roto has an uninterrupted dividend history for
the past five years and paid 20% each in last three years.
Currently it is trading around Rs.85,with a P/E multiple of  just
5 on the expected full  year EPS  of Rs.17 +


  1. Dear sir,is something wrong with ludlow jute? shpuld i buy at CMP for the average?
    plz suggest.
    thanking you.

  2. Dear KMD

    Nothing specifically wrong for Ludlow,but currently some negatives are happening in the industry as a whole.In the recent budget ,exemptions from excise duty on laminated jute bags withdrawned and such goods would now be subject to excise duty of 1% without CENVAT credit facility.A tariff rate of 10% is prescribed on Jute yarn ..etc are negative for the industry along with the unexpected rise in raw material cost.

  3. Any idea why Roto Pump gets such a low PE multiple?

  4. dear valuepick sir, what is your opinion on TASTY BITE in a longterm prospect? it had corrected from around rs.350.i read that packed foods will have very good sales in the future because of growing population of working female partner, finding inadequate time for cooking, modernisation of food habits etc.
    what is your opinion sir? are there any other good food processing or food or agri related multibaggers that you can recommend

    thankyou in advance sir.

  5. I think the prospects of Tasty bite is bright in long term.Positive on DFM Foods,ADF and Bambino Agro F.

  6. thank you valuepick sir



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