The makers of Maharani brand of basmati has posted 102% jump in net sales which led to a 92% increase in net profit
Moneylife Digital Team
The second quarter ended 30 September 2012 saw Chaman Lal Setia Exports (Chaman Lal), a micro-cap stock listed on Bombay Stock Exchange (BSE), report good results. Chaman Lal’s net sales were Rs53.22 crore compared to Rs26.40 crore for the same period last year, up 102% year-on-year (y-o-y). Chaman Lal’s operating profit rose 60% y-o-y, from Rs2.03 crore to Rs3.25 crore. The result was that net profit rocketed up 92% y-o-y to Rs2.03 crore. The results boosted Chaman Lal share price to Rs31.05, or 4.72% up on BSE earlier today. Higher sales boosted the Chaman Lal’s results.
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Chaman Lal has been performing quite consistently since the beginning of the year. The Moneylife database showed that it has been putting out high double-digit sales growth, with growth rate this quarter easily beating its already impressive 65% y-o-y average growth rate over the last three quarters. Similarly, its operating profit rose 60% which is more than its y-o-y operating profit growth rate of 47%, with last three quarters of solid performance. Being a micro-cap stock, it has completely escaped the eyes of analysts and fund managers. As of now, only the public and promoters hold its shares. The promoters hold 74.57% of the company, just below the statutory norms for delisting (over 75% means it has to delist). Keep an eye on this. The return on equity is very impressive, at 28% with attractive valuations of market-cap quoting at just above two times operating profit.
Chaman Lal setia Export is one of the oldest rice millers cum exporters of basmati rice of all varieties from India with the art processing units based in Karnal, Amritsar, Delhi.
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