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Multibagger - Mcleod Russel

Monday, April 9, 2007

Jagdish Malkani, NSE Member The prospects of Mcleod Russel are bright and the stock looks attractive at the current levels. The company is expected to end FY 07 with an EPS of around Rs 8-9. The stock can reach Rs 100 by the year end.


Mcleod Russell is currently trading at Rs 63. The company is one of the largest tea producer in the world with around 75 mln kgs production. The company has lot of good gardens particularly in North India, which are very valuable. The market cap of the company is around Rs 650 crore, which is cheap.

The company has no carry over stocks in the new season and the old closing stock of 23 million kgs has exhausted. The Sri Lankan crop has not been good and the Kenyan crop will now be crucial. The domestic consumption and exports are all looking up. Also, some major FIIs have taken a QIP about a year ago at Rs 120/share. The company so far has earned Rs 12/share in the 9 months. Genrally Jan-March is a losing quarter, but this time it is expected to be better. Malkani expects the company to end the year with an EPS of around Rs 8-9. The stock seems to be reasonably priced and he expects the stock to touch almost Rs 100 by year end.

Posted by FR at 9:40 PM  

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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.