Josts Engineering is a 104 years old company, engaged in Manufacturing & Representation Business. Core business activities include Internal material handling, sound and vibration measurement, electrical test and measurement, interconnectivity solutions,process instrumentation and environmental testing and analytical instruments.
Background:
The company started operations as a fan manufacturing unit way back in 1907 under the leadership of Carl Jost. Subsequently it also introduced industrial and engineering products of well known international industrial houses of that time like Evershed Megger Insulation Testers,Thor Pneumatic & Electric Power Tools, Edison Train Lighting batteries & Standard Telephones, Telecommunications and signalling equipment.
Today, Josts operates with 3 divisions:
Engineered Products division:
In association with MNC partners, it offers solutions in :
Sound & Vibration
Process instrumentation
Environmental simulation
Components
Electrical Tests & Measurements
Nano Technology & Analytical solutions
End user industries: Automotive, Aerospace, Oil & Gas,Power, steel, Electronics.
2009-10
Sales :Rs.27.42 cr
segment operating profit : Rs.3.04 cr
6-months ended Sept 2010:
Sales :Rs.14.82cr ( 3% growth yoy)
segment operating profit : Rs.1.25cr ( 35% de-growth yoy)
Material Handling division:
Has a manufacturing plant spread over approx 3.5 acres at Wagle Industrial Estate in Thane, near Mumbai for manufacture of a wide range from Electrical Fork lifts,Pallet trucks, Platform trucks, Scissor lifts, stackers and other material handling products. The company also manufactures a wide range of products under license from German company Jungheinrich and markets its complete range of material handling equipment in India.
Large clients: Indian Navy, M&M, Cadbury, Indian Railways
2009-10
Sales :Rs.33.44 cr
segment operating profit : Rs.3.81 cr
6-months ended Sept 2010:
Sales :Rs.17.64 cr ( 30% growth yoy)
segment operating profit : Rs.2.45cr ( 105% growth yoy)
Industrial Finishing division:
Produces various paint application equipments ( like spray guns, pressuried paint containers, air motors) and systems ( paint booths, ovens, paint circulating equipment ). It also markets products of ITW industrial finishing and Keppel Seghers.
The sales and segment profits are clubbed with the Engineered products division.
Josts Company Financials:
Equity: Rs.0.76 cr
Debt: Rs.0.70 cr
Promoter shareholding: 48.25% (as of sept 30, 2010)
Current market price: Rs.370
Market cap: Rs.28.20 cr
EV: Rs.29.90 cr
2009-10:
Sales: Rs.60.86 cr
PAT: Rs.2.33 cr
EPS:Rs.30.45
Dividend: Rs.10
6-months ended Sept 2010:
Sales: Rs.32.44 cr ( 18% growth yoy)
PAT: Rs.1.38 cr ( 30% growth yoy)
EPS:Rs.18 ( 6-months)
Possible Catalysts:
Change in ownership :Presently, the company continues to be run by its main promoter,Mr B.H.Reporter (assisted by a professional management set up), who is currently more than 80 years of age but still attends office regularly. There is no clarity on who will handle the reins of the company in the future as his children are not involved in the day to day operations of the company.
Should the company change hands, it will find many ready suitors and one which immediately comes to mind is Godrej & Boyce .
Josts offers a good investment opportunity at the current market price of Rs.370.
At the time of writing this report, the author /his family have an investment interest in the stock mentioned above. Under no circumstance does the information in this report represent a recommendation to buy or sell the above-mentioned stock. This report has been prepared and issued on the basis of publicly available information, internally developed data & other sources believed to be reliable. This is just a suggestion solely for information purposes and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Readers using the information contained herein are solely responsible for their actions and are advised to satisfy themselves before making any investments.
