CMP: 223

KSE Limited manufactures coconut oil from coconut oil cake, refined edible oil, animal feed, ice cream and other dairy products. The Company has two solvent plants and a chemical oil refining plant. KSE Limited caters to the vast belt stretching across Southern India and enjoys a significant presence in exports too.

KSE is a 71 Crore penny cap stock. Its currently trading at a P/E of 10. Its a consistent dividend yielding stock with high yields of almost 5% in the last 12 months with manageable liabilities. Revenues have steadily picked up from 275 Crores to 454 Crores in the last 5 years. Profits have turned around from losses to 8 Crores in FY09. FY11 has been a good year so far and the last 2 quarter results have been good. NPM has been low at 2% and leaves room for improvement there. The stock is currently on a bullish trend. Buy for short term as well as for long term gains.