Rotopumps--cmp 105

[grapes]

Roto Pumps is an engineering company with global focus. With presence in over 40 countries, they aim to provide localized solutions in application engineering, deliveries and sales support.A small cap company with M cap of 32cr.
Sales have almost doubled from 42 cr to 76cr and NP from 3.03cr to 7.27 cr during the last 5 years and it registered an EPS of 23 for the year Mar 2012.It is almost a zero debt company with D/E ratio of 0.67.Paid a dividend of 25% for Mar 2012.
The scrip may be considered for buying with along term view.

[grapes]

Net profit of Roto Pumps rose 27.94% to Rs 0.87 crore in the quarter ended June 2012 as against Rs 0.68 crore during the previous quarter ended June 2011. Sales rose 16.67% to Rs 16.87 crore in the quarter ended June 2012 as against Rs 14.46 crore during the previous quarter ended June 2011.

[Raghuram]

Hello grapes...It does not look good Q-o-Q....the stock has hit lower circuit currently......Is the long term view intact still ?

[grapes]

The result I have presented is Y O Y and not Q O Q .I still hold the view for longer term as simply one quarter result that too q -o -q was bad,although Y-o-Y Np growth was 27%

[rmani84]

Roto Pumps runs at a Debt of little over 16 Crores with little over 2 Crores cash in hand ... Debt to Profits ratio is well balanced at 2 years ... Revenues and Profits have grown solidly in the last 5 years ....

Last quarter result has also been outstanding ... But, remember that its a 30 Crore penny cap company and its bound to have wide fluctuations with upper and lower circuits from time to time ...

Cheers!

[Raghuram]

hmm.looking at your replies,i understand that the current lower circuits are not to be worried.the stock still holds positive outlook,atleast we can hope for it.i had bought 500 at 104, hoping to get similar np as prev 2 quarters, which was almost 80% more than wat they have delivered this quarter.

[rmani84]

hmm.looking at your replies,i understand that the current lower circuits are not to be worried.the stock still holds positive outlook,atleast we can hope for it.i had bought 500 at 104, hoping to get similar np as prev 2 quarters, which was almost 80% more than wat they have delivered this quarter.

Ya ... Just make sure your portfolio is diversified on 5 to 10 good stocks ... Just being invested in one stock alone is not a great idea ...

Cheers!

[Raghuram]

yes.true.i was only holding large caps.this was my first entry to small cap.:-\

[grapes]

Moreover, the company has recently embarked on a subsidiary in Germany and also planned capacity expansion of its production here, the benefits of which all will accrue in the near future.The second thing I wish to impress upon is price fluctuation,which is evident in all the stocks irrespective of being a large cap or small cap.Ex.Wockhart came down to 90 at one point of time,JP associates, Punjlloyd, unitech,tatamotors and many more to cite in the recent past.Always one should bear in mind that stock are liable to have wide fluctuations.

[Raghuram]

ok.as i know they have completed a 2 year expansion plan,which was reflected in the np of last 2 quarters of last year.however lets wait for the future quarters..need your views on fundamentals of jk lakshmi cement.is it ok to enter at current levels?