Wednesday, December 26, 2007

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.

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