SATNAM OVERSEAS

Satnam Overseas is the undisputed leader in branded Basmati rice with more than 35% market share with reputed brands like Kohinoor, Trophy, Charminar, Rose, Darbar, Shehanshah and Falcon. It is aggressively expanding its presence in the lucrative ready-to-eat foods (RTE) segment and is constantly augmenting its product portfolio. Recently, it has set up a frozen food processing facility at Haryana and has already received orders from Singapore, Mauritius, UK and South Africa. It also has plans to enter into the business of fresh fruits and fruit based snacks and desserts. For FY06, its total revenue grew by 7% to Rs.541 cr. but its net profit increased by 40% to Rs.21.50 cr. due to higher operating margin. This works out to an EPS of Rs.11 on its current equity of Rs.19.60 cr. Considering its future plans and management quality, the scrip is trading relatively cheap than its peers and has the potential to appreciate 25-30% in a years time.