Sujana Universal Industries – A Good Company But Share Price Languishes

Sujana Universal - stock market movement

Sujana Universal - stock market  movement
Sujana Universal - stock market movement | Source

Sujana Universal - stock market position

Quantity Traded
Deliverable Quantity (gross across client level)
% of Deliverable Quantity to Traded Quantity
50058
35188
70.29
 
 
 
Sujana Universal - stock market position

Sujana Universal - stock price trend

 
 
 
Weekly H/L
5.2
4.5
Monthly H/L
5.49
4.3
52 Weeks H/L
7.55
2.55
 
( 6 Apr 11 )
( 20 Dec 11 )
Delivery / Var+ELM %
64
33.85
Sujana Universal - stock price trend

Sujana Universal - Latest financial results

(in Cr.)
Dec-11
Sep-11
FY09-11
Revenue
952.97
857.09
3,877.42
Net Profit
8.87
2.95
27.2
EPS
0.53
0.21
1.84
Cash EPS
0.93
0.52
4.9
OPM %
4.08
2.95
4.09
NPM %
0.93
0.34
0.7
Sujana Universal - Latest financial results

Good Quarterly Results


Good Quarterly Results

Sujana Universal has produced good results for the third quarter ended 31.12.11 compared to the previous quarter. Revenue has increased from Rs.857 crore to Rs.952 crore. Revenue for the 18 months period from October 2009 to March 2011 was at Rs.3877 crore. Net profit increased from Rs.2.95 crore to Rs.8.87 crore. Net profit for the period 09-11 was at Rs.27.20 crore. Annualised EPS was at Rs.2.12. Annualised cash EPS was at Rs.3.72. Operating profit margin increased from 2.95% to 4.08%. Net profit margin increased from 0.34% to 0.93%.

Small Public Issue Of Rs.69 Lakhs In 1989

The shares of Sujana Universal are traded in the Indian stock markets at Rs.4.71 now (BSE 13.03.12). The shares of Sujana Universal are available in both BSE and NSE. The face value of the company’s shares is Rs.10. The company belongs to the Sujana group of companies. There are four companies in the Sujana group and three of them are listed. Earlier Sujana Universal was called as Sujana Domestic Appliances. It went public in the year 1989 with a small issue of Rs.69 lakhs. By today’s standards, this was no issue at all. But 1989 was the year when the Indian economy was experiencing onset of liberalisation and reforms. V.P. Singh initiated this process when he was the Finance Minister in Rajiv Gandhi’s Cabinet in 1985. Rajiv Gandhi lost the elections in 1989 and was assassinated by LTTE in 1991. There was a lull in the two years gap between 1989 and 1991 for the liberalisation and reforms. When P V Narasimha Rao became the Prime Minister of India in 1991, liberalisation and reforms were accelerated through Manmohan Singh, who was the Finance Minister then.

Quality Certification For Its Products

Sujana Metal products is the flagship company of the Sujana group. Sujana Universal has set up foreign subsidiaries in Dubai, Singapore and Hong Kong to develop its international trade in bearings. The Bangalore-based Central Power Research Institute has approved the company for its superior product features. Earlier it had acquired Vijay Appliances. The company is number one or two in South India along with Bajaj Electricals. The company has launched exhaust fans, ventilators and portable inverters. Domestic appliances market is growing in India at a CAGR of 15-20 per cent. But there are multiple players in the market and the competition is very intense. But inspite of its immense status, the share price continues to languish in the Indian stock markets because of lack of market fancy. Investors are advised not to enter the counter of Sujana Universal at this point of time.

More by this Author

  • Symphony Dominates Air Cooler Market
    0

    Air coolers are best suited to people living in the interior away from the sea. For those who live within fifty kilometres of sea coast, air coolers are difficult to maintain and they should opt for air conditioners....


Comments

No comments yet.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working