SML ISUZU Ltd making of another eicher motor

SML ISUZU catching the attention not only because of its improving financials but on account of the possible change in its patronage too. SML ISUZU (Formerly Swaraj Mazda )manufactures and sells light commercial vehicles for goods and passenger applications . Its products include ambulances,buses, dual cabs, and trucks.Currently majority of the stake is held by Japanese  giant Sumitomo corporation (54.9% ) .Isuzu own ( 4% ) and P/E player Actis holds 5.6% . For Sumitomo, auto sector is not their  core competency so they are willing to sell their stake if they fetch good value for the investment .Actis is also ready to exit and they already made some discussions but could not conclude the deal mainly due to differences over valuation.On the other side Isuzu is very much interested to increase their current stake and take the control of the company.Isuzu is  the world's largest manufacturer of medium to heavy duty trucks and Swaraj Mazda is a perfect fit for their Indian dreams.Various reports indicating that Isuzu is ready to pay Rs.400/- share to Actis to buy out their 5.6 % stake in the company .Since the last open offer by Actis was at Rs.400/-and performance of the company improved thereafter a deal at Rs.400/- is only a distant possibility.Some other reports saying that Isuzu is ready to pay Rs.600/-per share to Sumitomo for a controlling stake. Interest of Tata motors is also a possibility even if they deny it earlier.Isuzu's entry into the driving seat may bring many new models to SML 's table.Any way ,some changes in the share holding pattern is expected in this financial year itself and most probably at a price substantially higher than the current market value.On the other side ,company is improving its financials.For the December qtr Sales rose 17.83% to Rs 220.70 crore as against Rs 187.30 crore and Net profit zoomed 64.41% to Rs 9.70 crore  as against Rs 5.90 crore.Company really deserves a close watch which is currently trading around Rs.410rs

source : value pick


see fundamentals

http://cmlinks.com/moneypore/profilenew/financial.asp?mainopt=8&cocode=544

FAVOURABLE CHANGES
Total revenue up 25.6% to Rs980.7 crores ($US219.4m)
Net profit growth 70.3% to Rs36.6 crores ($US8.2m)
EPS growth 29.9% to Rs25.26 (US56.52c)
A track record of profits in 4 of the last 4 years
5-years average annualized earnings growth rate of 9.6%
Total liabilities to EBITDA down 7.9% to 4.8: this compares
favourably with the Joseph Piotroski benchmark of <5
EBIT to total assets up 10.6% to 11.1%
Total revenue to total assets up 13.1% to 1.8.

FOR FURTHER DETAILED REPORT SEE THIS LINK


http://www.buysellsignals.net/BuySellSignals/report/India/Stock/PDF/Daily/India_pdf_800.pdf