national oxygen

CURRENT PRICE : 100
EPS:16-18
TARGET:200


POWER TO GENERATE PROFITS FOR NAT.OXY:
For National Oxygen Power and Fuel costs amounted to Rs.6.50 crores out of total Manufacturing expenses of Rs.7.39 crores. This is the reason why National Oxygen now proposed to enter Wind Power generation project. The Wind Power project which will be implemented in short time will reduce its power bill substantially or generate other income. On account of this new venture, even if 50% of power costs are saved, the company can save Rs.3.25 crores(50% of power costs)and this alone gives an additional EPS of Rs.10. Already EPS is expected at Rs.16 to Rs.18 for this year and add this to earlier estimate, there is every chance that the EPS may touch Rs.25 shortly. For the next few years, the prospects of National Oxygen are very very encouraging and buying at current level of Rs.90 will surely give a more than 100% gains.

HIGHLY POTENTIAL SHARE NATIONAL OXYGEN: The Demand for its products is very strong and margins are improving. Main demand for its products is from Steel Rolling mills, shipbreaking/ making industry, cheicals, pharmaceuticals and hospitals. The clients include numerous local and outstation units and Govt of India undertakings. The beauty is it is totally DEBT FREE company-no interest burden. Entering Wind Farms will generate other income and reduce power costs. Compare to Bombay Oxygen share price at Rs.6000/-FV.100 (or Rs.600 for FV Rs.10), National Oxygen at Rs.90 is very cheap and poised for a big jump.

NATIONAL OXYGEN A PIONEER IN INDL. GASES: NATIONAL OXYGEN is PIONEER in Industrial Gases Sector which has show first signs of BOOM CONDITIONS in this sector almost a year back. Now all other Industrial Gases are moving fast after a year like BOC … Bombay …. Bhoruka Gas and Bhagawati Gases. All this shows the tremendous BOOM CONDITIONS in this sector.

NATIONAL OXYGEN is having the following advantages over others

01.National Oxygen is a totally Debt Free company-no interest burden
02.Already additional capacities are available to meet the demand and no need for further investment immediately
03.Raw material costs are almost nil as plenty of 'AIR' is available free of cost. Major manufacturing cost is Power. Now the company is enering WIND POWER generation to reduce its only cost.
04.Already enjoying highest margings
05.Having wide network and client base for a regular market.
06.Most of the consumers are in and around the plants-thereby lower transport costs.
07.Promoters are well experienced in the line of busines to encash the BOOM CONDITIONS
08.Power generation will bring additional other income by selling the surplus power to others
09 Company can enjoy huge tax benefits by way of huge depreciation provisions on WindMills to be set up immediately in the current year it self.
Considering the above favourable conditions and inview of the expected EPS of Rs.16/- in current year, there is enough scope for appreciation

Results : http://www.bseindia.com/qresann/result.asp?scripcd=507813&scripname=NAT.OXYGEN