http://www.chennai-investors-club.com VALUE Stock Newsletter – Jan 2011 Panasonic Carbon India Co. Ltd – Accumulate at Current Levels CMP Rs 140 - Jan 2011 BSE Code 508941 BSE Sensex 19224 NSE Nifty 5762 (52 wk High is Rs 204 / Low is Rs 130) KEY POINTS •Its business ismanufacturing of carbon rods, which is used in dry cell battery. Steady Sales in the last 5 years. •Market Cap of approx Rs 69 crores •Face Value – Rs 10 •Book Value per share is Rs 115 •Dividend Paid is Rs 7 per share. Excellent Div yield of 5%. •Promoters hold 74% stake in the company •Zero Debt Company •Company has Rs 52 crores as Fixed Deposits which is approx Rs 110/share as Cash. This means at the current price of Rs 140 values the core business at just Rs 30 per share •The current manufacturing capacity will be increased in next 2 – 3 years time frame by way of internal accruals. •Trades at approx 13 times its current earnings, which is fair
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In times when Sensex is trading at 24 times its earnings an investor is left with few
investment avenues which offer a low downside risk.
Warren Buffet says
#1 Rule of Money is ‘Don’t LOSE Money’
#2 Rule of Money is ‘Don’t FORGET Rule #1’
And this Stock could well fit in the Rule #1
Happy Investing
Ravi Padmanabhan - Wealth Coach
http://www.chennai-investors-club.com
Disclosure:
Analysts Ownership of the stock as of today – NIL
Analyst’s Clients Ownership of the stock as of today – YES
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