Simmonds Marshall Ltd | Show You The Money | Investing | Finance | Share Market | Share Guru Weekly
BSE Code - 507998
Face Value - Rs.2/-
CMP - 120.05/-
It is in the primary business of manufacturing and selling of industrial fasteners used in auto industry, railways, white goods and farm equipment. These fasteners include specialised cleveloc and all metal self-locking nuts, nylon insert self-locking nuts, flange nuts, hosepipe fitting nuts, cold forged sleeves, bushes, among others. It produces over 50 crores of such nuts per annum. This 56- year old company acquired a Chennai- based partnership firm Stud India, well-known stud maker.
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It also took over Philidas of the UK, a company that was making self-locking nuts using special technology, by paying a throwaway price of Rs 3.5 Cr and moved the plant and machinery to India.
Simmonds Marshall has been supplying nuts to BMW, Jaguar, Bosch, Ford, among others. It is aiming around Rs 40 Cr net profit on a turnover of Rs 500 Cr by the year 2020 and taking measures accordingly.
In the fourth quarter of 2017-18, it earned a net profit of Rs 3.17 Cr as against Rs 41.19 lakh in the same period a year ago.
The consol net profit in the full financial year 2017-18 was Rs 9.61 Cr, up 60%, compared to Rs 5.99 Cr in the earlier year. In the year under review, the net worth improved to Rs 63.14 Cr from Rs 54.2 Cr.
The EPS was Rs 8.94 (share face value Rs 2.00). The company declared a dividend of Re 00.70 per share, equalling 35% of the Rs 2 face value, for the year 2017-18.
The beauty of this company is its minuscule equity, which is a minuscule Rs 2.24 Cr. The promoters are controlling 56.67% stake in the tiny equity. It is a highly favourable factor in the investors' point of view. The stock of Simmonds Marshall has been trading at less than the yearly high of Rs 155.