The Explosive Results from Keltech makes it a attractive buy for short term and medium term gains.
PROMOTERS:
Keltech Energy is promoted by Chowgule Group which has become a big Business Group since its modest beginnings in 1916. The Group has presence in Iron Ore Mining, Industrial Gases, Shipbuilding, Brewery, Explosives among others.
Keltech Energies Ltd was formerly known as Karnataka Explosives Ltd was incorporated in 1977 and manufactures a wide range of pre packaged Industrial Water Gel explosives and a variety of expanded Perlite Products. It has plants in Karnataka, MP, Maharastra and AP.
The company has recently decided to set up facility for Explosives accessories.
WHY BUY NOW???
Keltech Energy will benefit from the high growth in the Country's Mining sector.
We will further explore the various reasons for the "BUY" call.
Falling Input Costs:
The Falling prices of ammonia nitrate (main raw material) and the Packing Materials Costs has worked wonders to the profitability of the Company and the trend is likely to continue for at least another two quarters.
Low PE:
The Average Industry PE is 25.76 and Keltech Energy is quoting at a paltry 2.62. This gap will definetly bridged sooner rather than later. The Trailing EPS of Keltech is 84.9 giving it a PE of under 3.
Book Value :
The book Value is a healthy 126.69
The Company has a lean capital of only Rs.1 Crore and the Reserves stood at Rs.11.67 as on March 2009 which would have shot up after the spectacular results of the past 3 quarters.
The High Book Value makes the Company a sureshot BONUS CANDIDATE!
Dividend :
Dividend was 25% and should go up due to the Boom in EPS. Doubling of Dividend is a definite possibility.
Buy now and on every dip., Keltech Energy promises to be a MultiBagger.
Keltech is listed in BSE under the Code "506528"
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