Index - 10683
CMP - 86.7
I had written here about Repro Industries and my liking for the business and the stock. I had followed that up with analysing the Q1 results here.
The company announced its Q2 results and it is in line with expectations. Sales increased dramatically over last year from Rs 44 crores to Rs 63 crores a increase of 43%. The increase sequentially over the Q1 quarter is about 36%.
The Q2 quarter invariably has higher sales due to the balance sheet printing business however it has lower margins.
The net profit has grown at 10% over last year from 3.8 crores to 4.2 crores. The reduced net profit margin is due to a mark to mark provisioning of Rs 2 crores on forex loss. Minus that the net profit would have moved from 3.8 crores to 5.4 crores a jump of nearly 42% at the operational level.
Half yearly EPS stands at Rs 8.57 per share and the cash EPS stands at Rs 12.26 per share.
I have added more to my position on the stock around the Rs 90 mark. Stock is available around a PE of 5-6 on FY09 profits.
I have uploaded the FY 2008 balance sheet here