Consolidated performance for 1st Half of FY 2010:-


Consolidated Sales for H1 2010 is Rs.337.7458 crores (out of this Rs.76.5801 crores revenues came from outside India); Interest outgo Rs.17.6789 crores; Net Profit is Rs.57.5491 crores. Diluted EPS after extraordinary items is Rs.14.44/- per share; Operating Profit Margin for H1 FY 2010 is 25.59% (in corresponding period last year it was 20.25%); Net Profit Margin for H1 FY 2010 is 17.04% (in corresponding period last year it was 14.60%)…..

Deferred tax of earlier year is Rs.15 crores. In 2nd quarter company has adjusted Rs.5 crores. In consequent 2 quarters company is about to adjust remaining Rs.10 crores deferred tax equally. As per guidance of Mr. Sudhir Rao, revenues from Rs.5000 crores “Aap Ke Dwar” order will start flowing from 3rd quarter of FY 2010. Chances are high that company will meet its guidance of Rs.150 crores in bottom line. But I am a bit skeptical about Rs.1000 crores top line guidance for FY 2010. Rs.810 crores to Rs.875 crores is achievable top line target for FY 2010. Rs.225 crores & Rs.250 crores are top line expectations for 3rd & 4th quarter of FY 2010 respectively.

Company will witness ‘Golden’ next year as another stream of income will start for the company; i.e., Advertisement revenues from 2000 Kiosks in Delhi which will start flowing from June 2010 / July 2010. FY 2010 Commonwealth games in Delhi will serve as “Sugar in Milk” for Advertisement revenues.

As always only cause of concern is high equity dilution rate & FCCBs.

All in all, from fundamental angle, satisfactory performance till date.

I do agree. But what foxes me is why isn`t the market giving it a high PE then? And do u have any idea on the cash flow part? That seems to be a concern as well right?
Normally, markets to tend to give a high PE to such stocks & should have been outperforming the sensex/nifty,instead it is underperforming!!
Anything to do with the QIp/FCCBs ?

i have bought bartronics 100shrs @ 135rs and also Indian hotels 100shrs @ 76.50..on your recommendations..

plz tell me target with time frame..

thanks in advance..

Cash Flow History of Bartronics =


Cash & Cash Equivalent at the end of the year:-

2000-01 = 87,88,000
2001-02 = 79,000
2002-03 = 82,000
2003-04 = 70,000
2004-05 = 49,463
2005-06 = 35,81,69,327
2006-07 = 20,33,909
2007-08 = 5,71,11,614
2008-09 = 6,71,62,000


Varun Sir,

First of all there is no cause of concern as far as cash flows are concerned. Secondly, Bartronics is `trading company` (Hardware Parts - commodity). None of the trading company get P/E above 10 or 15 times its’ EPS. Maximum 25 times! No matter how fast it`s growing (See, HCL Info., Geodesic, etc...). Next year Bartronics will enter into service industry (Diversification) because of Aap Ke Dwar project. Additional Kiosks may be opened in Delhi. Management said it will try to execute same kind of projects in other states of India too. So it will start getting high P/E only on successful completion of 2000 Kiosks. In short; let management do the excellent work in same manner as they done in past.


Lalit Sir,

Bartronics will cross Rs.500/- mark in March 2010 per se. So hold tight. Indian Hotels Company Ltd (IHCL) has posted lackluster results in H1 FY 2010. But scheduled Commonwealth Games in Delhi, India next year & scheduled Cricket world cup series in Mumbai, India in FY 2011 will give extraordinary boost to bottom line of the IHCL. Further, 288 rooms will be operational once again in Taj Palace, Mumbai (which were closed because of destruction caused by terrorist attack) from December this year. So, as per my calculations, IHCL scrip will cross Rs.150 mark in March / April 2010.

thank you so much 4 ur reply..

plz give other recommendation with buying level and target price with time frame..

.. :-)

Hi,
When investor community discusses cashflow, it is mainly concerned about cash from operations which is negative in case of Bartronics.This is the reason for not having high P/E. Which i expect to change in a year or two
I am a long term investor in Bartronics, otherwise i do agree with your analysis

Spanco Ltd is another call.....It`s BPO Buzz! This year is most successful year for BPO industry. 6 months EPS of Spanco is Rs.8.74 & annualized EPS is Rs.17.48.

Right now stock is trading at around 3 P/E ratio; i.e., Rs.53.60/-. This stock bounced from odd Rs.70/- levels to Rs.275/- levels in just 2 months in the year 2005 when Reliance bought 15% stake (approx.) in Spanco Ltd. Still Reliance Capital is holding 8,58,000 shares (3.06% stake) in Spanco Ltd. Further this year company will show 200% + growth in bottom line. Book value is Rs.108/-!!! Assuming just 5 P/E stock has target of Rs.90/- to Rs.110/- at any given point!!!