Sunday, January 3, 2010
at 5:13 PM
SECTOR P.E - 18.30
MARKET PRICE - Rs 295 (voting) , Rs 17.25 (non voting)
ASI - 3280.82 (22/12/2009)
23/12/2009 - Tokoyo cement company recently annouced a subdivision of each company shares in to ten shares.This is applied only for the voting shares.
In the past market positively reacted all the sub divisions & rights issues. Eg -- ASIR, LLUB, & MARA, DURDANS, LION etc. giving investors massive returns withing a very short period. Like wise we believe that tokyo both voting & non voting counters have further room to go up.
Share capital is represented by Ordinary Shares - Voting 18,000,000-
Ordinary Shares - Non Voting 90,000,000-
As at 30/09/2009 we can see a drop in profits at the group level. How ever at company level reported profit was Rs 1.3 m.n as against Rs 134,314- for the six months , a growth of 882%. For the last quater at company level profit was Rs 1.1.m.n as against a profit of Rs 57,243- YOY , a growth of 1956%.
This clearly shows us the future potential available for the company due to the strong upward trend in the contruction sector after end of 30 year old civil war.Further we believe that the company is well positioned to grab the future opportunities available in the construction field specially in the NORTH & EAST.
Further the risk factor available in investing TOKYO is minimal at this stage (market is at all time high)because of the pending sub division of its shares. We believe that due to the low liquidity, the voting share has further room to go up.It was trading around Rs 255 levels in September 2009. Remember now you have the chance of getting 1000 shares if you have 100 before the sub division.
Non voting share is trading at a discount to the voting at the moment. Hence it also has a room to go further up.
Nippon Coke & Engineering Company Limited, Japan (formerly Mitsui Mining Com) & St Anthony's Consolidated Limited owns 27 .5% each of the issued voting shares of the company as at 30/09/2009.
BUY - TOKYO VOTING / NON VOTING