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Hello good people,,
SHL is trading around the Rs. 20-21 levels and i think it warrants a closer look at this company.
The company has a FY 11/12 1QTR EPS of Rs. 0.42 and a NAVPS of Rs. 9.93. It must be also noted
that this EPS does not reflect any interest savings post IPO as the funds came in after the period.
therefore it can be safely assumed that there will be sharp rise is EPS 2QTR FY 11/12.
Annualised EPS FY 11/12 even at current levels will be 0.42 x 4 = Rs. 1.68
Annalised EPS FY 11/12 at a conservative EPS growth of 25% YOY will make it (1.68 x 25%) + 1.68= Rs 2.10
therefore the share currently trades at 20.50/1.68= 12 times earnings FY 11/12
at the estimate 25% EPS growth 20.50/2.10= 9.76 times earnings FY 11/12
I was also at the AGM of SHL recently and it was said by the chairman that the company is well on its way to DOUBLE profits for FY 11/12!.
In case his prediction does come true the PER would come down further.
The company holds the extremely profitable Asiri hospital chain and has forays into, retail, automobile, finance, owns AAIC and is also the country agent for Nokia/DELL and many other famous brands. the company also has acquired Ceysands hotel and is planning to build a star class hotel with Swiss hotel chain Movenpick.
The future story looks bright for the company,,,,
Although the IPO was overpriced with Private placement issues,,, the current price levels certainly make it enticing and it is a fast grower. the company grew its bottom line by 257% 1QTR FY 11/12 against the same period last year. !!!!.
With a diversified sector PER of 20-22 times it is not impossible to see an upswing in excess of 25% in the mid term for SHL.
After all the best time to buy shares is when the market is shunning it..
happy investing everyone....
SHL is trading around the Rs. 20-21 levels and i think it warrants a closer look at this company.
The company has a FY 11/12 1QTR EPS of Rs. 0.42 and a NAVPS of Rs. 9.93. It must be also noted
that this EPS does not reflect any interest savings post IPO as the funds came in after the period.
therefore it can be safely assumed that there will be sharp rise is EPS 2QTR FY 11/12.
Annualised EPS FY 11/12 even at current levels will be 0.42 x 4 = Rs. 1.68
Annalised EPS FY 11/12 at a conservative EPS growth of 25% YOY will make it (1.68 x 25%) + 1.68= Rs 2.10
therefore the share currently trades at 20.50/1.68= 12 times earnings FY 11/12
at the estimate 25% EPS growth 20.50/2.10= 9.76 times earnings FY 11/12
I was also at the AGM of SHL recently and it was said by the chairman that the company is well on its way to DOUBLE profits for FY 11/12!.
In case his prediction does come true the PER would come down further.
The company holds the extremely profitable Asiri hospital chain and has forays into, retail, automobile, finance, owns AAIC and is also the country agent for Nokia/DELL and many other famous brands. the company also has acquired Ceysands hotel and is planning to build a star class hotel with Swiss hotel chain Movenpick.
The future story looks bright for the company,,,,
Although the IPO was overpriced with Private placement issues,,, the current price levels certainly make it enticing and it is a fast grower. the company grew its bottom line by 257% 1QTR FY 11/12 against the same period last year. !!!!.
With a diversified sector PER of 20-22 times it is not impossible to see an upswing in excess of 25% in the mid term for SHL.
After all the best time to buy shares is when the market is shunning it..
happy investing everyone....
) 
