Hidden Gem - Buy Orient Carbon @118

As a investor, one should dig for value stocks which are not recognised by any of the Brokers. Once it does recognition, the price will fly like rocket. I will be posting many number of such calls.

1. Oriental Carbon & Chemicals Ltd

Buy this stock around 118 and a short Term Target of 135.

Stock Summary

BSE NSE As on : 27 Apr 11 | 02:47 PM
Open (Rs) : 114.00
Days High / Low (Rs) : 121.90 / 114.00
MarketCap (Rs cr) : 123
P/E : 3.14
EPS : 35.58
52-Week High (Rs) : 161.00 (15 Jul 10)
52-Week Low (Rs) : 88.50 (25 May 10)
Volume (No of shares) : 27,337
BID Price / Qty : 119.05 / 6
ASK Price / Qty : 120.45 / 5

Key Financials

(Rs cr) Dec 2010 Dec 2009 YOY
Operating Income 42.51 32.34 31.45
Total Expenses 29.04 21.57 34.63
Operating Profit 13.47 10.77 25.07
Other Income 0.19 0.46 -58.70
PBDIT 13.66 11.23 21.64
PBT 10.50 9.60 9.38
Adjusted Net Profit 9.39 7.46 25.87

Shareholding Pattern

Promoters 56.13 %
Mutual Funds / UTI 0.06 %
FI/Bank 0.99 %
Insurance 10.21 %
Others 0.00 %
Govt 0.00 %
FII 0.00 %
Non-Institutions 32.62 %
Depository Receipts 0.00 %
Total 100.00 %

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Peer share ratios
Adjusted EPS (Rs) 29.04 6.76 4.86 3.60 4.43
Adjusted cash EPS (Rs) 33.60 11.11 9.35 8.37 8.30
Reported EPS (Rs) 28.61 7.41 1.65 3.16 4.19
Reported cash EPS (Rs) 33.16 11.75 6.14 7.93 8.06
Dividend per share 4.00 1.50 0.50 1.00 1.00
Operating profit per share (Rs) 39.78 14.72 13.11 11.72 10.84
Book value (excl rev res) per share (Rs) 88.70 64.76 60.36 61.40 59.41
Book value (incl rev res) per share (Rs.) 90.11 66.26 61.96 63.13 61.16
Net operating income per share (Rs) 123.23 118.96 92.78 70.38 59.05
Free reserves per share (Rs) 61.83 37.89 32.71 32.54 30.54
Profitability ratios
Operating margin (%) 32.28 12.37 14.12 16.64 18.34
Gross profit margin (%) 28.58 8.72 9.29 9.86 11.79
Net profit margin (%) 23.06 6.19 1.77 4.48 7.05
Adjusted cash margin (%) 27.07 9.28 10.02 11.88 13.97
Adjusted return on net worth (%) 32.74 10.44 8.05 5.85 7.45
Reported return on net worth (%) 32.25 11.43 2.73 5.14 7.04
Return on long term funds (%) 35.87 14.76 12.79 8.87 8.67
Leverage ratios
Long term debt / Equity 0.13 0.15 0.17 0.28 0.41
Total debt/equity 0.20 0.33 0.43 0.47 0.54
Owners fund as % of total source 83.05 74.72 69.79 67.99 64.81
Fixed assets turnover ratio 1.12 1.27 0.96 0.69 0.58
Liquidity ratios
Current ratio 2.83 2.65 2.28 2.63 2.75
Current ratio (inc. st loans) 1.74 1.20 1.02 1.19 1.43
Quick ratio 2.17 1.73 1.48 1.75 1.99
Inventory turnover ratio 12.50 8.92 6.28 6.05 7.00
Payout ratios
Dividend payout ratio (net profit) 16.33 23.69 35.41 37.02 27.22
Dividend payout ratio (cash profit) 14.09 14.93 9.52 14.74 14.15
Earning retention ratio 83.91 74.05 87.98 67.48 74.26
Cash earnings retention ratio 86.09 84.20 93.75 86.03 86.26
Coverage ratios
Adjusted cash flow time total debt 0.53 1.97 2.79 3.45 3.89
Financial charges coverage ratio 17.30 4.04 4.07 4.48 5.85
Fin. charges cov.ratio (post tax) 15.12 4.08 2.84 4.01 5.23
Component ratios
Material cost component (% earnings) 23.58 49.53 37.52 34.50 36.66
Selling cost Component 9.85 7.55 9.78 10.76 9.56
Exports as percent of total sales 60.35 54.99 50.84 55.12 53.56
Import comp. in raw mat. consumed 23.90 36.45 10.47 8.27 21.63
Long term assets / total Assets 0.55 0.51 0.49 0.55 0.58
Bonus component in equity capital (%) 7.80 7.80 8.21 8.77 8.77