Skip to main content

Another stock pick

I was looking for a decent mid-cap stock in an exciting market segment and stumbled across Bartronics. The company operates in the niche segment of bar codes, smart cards and RFID. With the huge growth of organised retail in India in the coming years, Bartronics with its market leader position is well placed to capture the opportunity.

The company has had very strong growth in the last few years. The company has no significant long term debt.

Mar ‘07

Mar ‘06

Mar ‘05

Mar ‘04

Mar ‘03

Sales

63.52

29.04

18.06

12.58

8.31

Operating Profit

17.21

7.52

4.61

3.25

1.16

Net Profit

13.46

5.34

2.40

1.35

0.14

EPS

7.52

3.60

2.74

3.09

0.33

RoE

10.89%

7.81%

25.08%

17.22%

2.64%

RoCE

10.14%

6.96%

14.14%

9.72%

1.30%


Also, in the first half of 2008, the sales is 54.27 cr and net profit is 8.93 cr. The EPS is Rs. 5.01. So, financial year 2008 also looks to be very strong with respect to sales although there is a concern on the net profit front.

The margins are around 22% and the stock is available at a PE ratio of around 28.

It looks like a good fundamental buy with a 2-3 year perspective.

Comments

Popular posts from this blog

Review: My new ebook reader - Infibeam PI

I bought a new ebook reader. It is the Infibeam PI (www.infibeam.com/PI) . I have seen and used both the Amazon Kindle and Sony ebook reader. The main reason I selected the PI is because it was available in India. I did not have to wait for weeks to get my hands on it.

I will not go into detailed comparisons between the three readers I have used. The reason I bought the ebook is to read books. Although that sounds rather a stupid thing to say, I found some features on Kindle quite superfluous to book reading. Like the space consuming keyboard. I dont know of any book which comes with a keyboard, so why should an ebook come with one. If I have to surf the net, I will use my laptop to do it.

The whole buying process was easy and seamless. Delivery happened within 3 working days. The only regret I had was my father was not there to see this. He was pretty excited with the concept of an ebook reader and I had entrusted him with the duty of checking the condition of the parcel when it arrive…

Book Review: Let's Do Lunch by Roger Wilson

I read this book sometime back as part of my journey of understanding food and how it affects the body and mind. In the last two years I have managed to lose about 10kgs of weight and in the process have learnt a fair deal about food, although not enough to talk authoritatively with a nutritionist.

Roger Wilson's book deals mainly about how the author lost a significant amount of weight himself after trying his own diet plan. The diet he followed was eating fruits and proteins. His lack of fundamental knowledge of nutrition makes his commentary a suspect from the very beginning. This book is more a chronicle of the authors weight loss journey than a guide to healthy eating.


Conclusion: Better to avoid.