Q: Is it wise to invest in the shares of Empire Industries Ltd (BSE Code: 509525) at this price?
A: Empire Industries Ltd has been manufacturing and importing several products. It has also been in the real estate development business. The range of products it offers include glass containers, seafood,
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automatic vending machines, machine tools and industrial machines. It is operating through power, oil & gas, manufacturing, petrochemicals, fertilisers, chemicals, pharmaceuticals, metallurgy, defence and railways sectors.
The company has a capacity to produce 10 lakh units of glass bottles in 5 ml to 500 ml sizes. Pfizer, Merc, Cipla are among its top clients. Empire Industries is entering the fire & safety sector.
In the LED segment, it got large orders to supply LED bulbs. It launched snacks under the Snack Pack brand through its own ‘Grabit’ brand vending machines. It owns commercial and residential space of 10 lakh square feet in Mumbai.
It rented 93% space of 2-lakh sq.ft of Empire Plaza-2 commercial complex at Vikhroli, Mumbai. It leased 100% space in another commercial complex it owns at Lower Parel.
The company is constructing a mega-complex, named Centrum with 1,41,402 sq.ft area spread over 35 acres of land at Ambernath. The project includes three industrial buildings and four residential structures.
In 2017-18, Empire Industries earned a net profit of Rs 46.84 Cr versus Rs 33 Cr in the earlier year. Its EPS was Rs 77.78 for the year. It paid Rs 25 per share as dividend for FY18.
In the quarter ended September 2018 (Q2FY19), the net profit jumped to Rs 25.97 Cr from Rs 9.03 Cr in the same period of the earlier year.
In the first half ended September 2018, it earned a net profit of Rs 34.13 Cr, as against Rs 17.93 Cr in the corresponding period of the earlier year. The company's earnings per share (EPS) was Rs 56.75 in the H1FY19 itself.
In the minuscule equity capital of Rs 6 Cr, promoters are controlling 72.55% stake, while Insurance firms hold 14.74%. The 52-week high price was Rs 2,598 and low price Rs 1,076.
The share is currently available at around Rs 1,090. The opportunity. in this share is its availability at the 52-week low level.