20th June 2013, 01:26 PM
Savita Oil Technologies
Does anyone tracks it?
I got this share name from moneylife suggestion.
SOTL’s main business is manufacture of liquid paraffin, transformer oil, lubricants, waxes, automotive & industrial lubricants, water-based paints for leather finishing, optic fibre cable-filling compound, white oil, petroleum jellies, cable-filling compound, polyethylene wax, etc. Its manufacturing facilities are located at Navi Mumbai, Mahad and Silvassa. The company has had an international business division since 1993 which has emerged as India’s largest exporter of petroleum specialty products.
SOTL supplies automotive lubricants to the auto sector and industrial lubricants to BHEL. Among its other clients are: state electricity boards, major power equipment manufacturers and some FMCG and pharma companies (for liquid paraffin and petroleum jelly). The company also manufactures ultra high-performance hydraulic oil, with exclusive hydro-treated base oils, for earthmoving and construction
Screener data shows company has less than 10% of its market capital as debts.
Industry PE and Book value are almost on same line.
Though in last 10 years profit started falling from last 2 years but still it's in positive territory.
I have no idea about cash flow stuff but it doesn't look positive as hardly any numbers seen there.
Sales growth and ROE on compounded terms have been above 20% in last 10 years.Other income also less than 10% of operating income (which means company is more focus towards its core area..I guess..)
Promoter holding is 71.5%.
Also company pays dividend regularly at 3% yield and also earning yield is almost 14%.
Does this look a good buy for moving money from a loss making entity?