What about godrej industries at cmp?or should i wait for a correction?
1. Godrej Industries ltd operates in 4 divisions chemicals,vegoil,real estate, finance and investment.There is an important observation to be considered regarding the company when its profits are to be considered.
2. For the FY2007-08 it had a PBT of Rs 209 Cr on sales of 3008 Cr but that 209 Cr included a 76 Cr profit on sale of long term investments(not a business operation) and similarly for FY 2006-07 out of 76 Cr PBT 53 Cr was from sale of long term investments.Now if 76 Cr profit is not considered for Fy2007-08 then it would bring down the EPS to around 3 and the stock is trading at 126 resulting into a P/E of abt 43.
3. Now considering the none months ended results for FY2008-09 it is to be seen that the company's chemical and ve oil businesses have been non performer.Its the real estate business and the finance business that is delivering.
4. In every quarter result there is almost 50% of the profits from exceptionl items.Even during dec'08 out o ...more