ABOUT THE COMPANY
English Indian Clays Ltd., a Company incorporated in India, was part of the erstwhile Thapar Group. The Company was incorporated in 1963 in technical & financial collaboration with English China Clays Ltd., U.K, the pioneer and the then world leader in Kaolin processing.This collaboration with ECC ceased in the year 1992.
EICL has two key Divisions, viz., Clay & Starch Divisions. The Clay Division, having three manufacturing locations in Kerala, specialises in mining and processing of high end kaolins.
ABOUT THE FINANCIALS
English Indian Clay has posted a good result for Q2FY11 and Q3FY11 was more about maintaining, with flat net sales at Rs.87 crore (YoY) and almost identical net profit at Rs.7 crore.
NEWS FLASH
in view of improved economic conditions , Its speciality starch project at Shimoga in Karnataka, which was put on hold in FY 2010 due to the global economic recession, is under continuous review.
Till end of FY10 the company had incurred an expenditure of about Rs.10.83 crores on 66 acres of land at Shimoga , whose possession has been taken.
Post the stock split and bonus, annualized EPS for FY11 is around Rs.6 which discounts the current price by around 8 times.
ABOUT THE STOCK
The company has already sub divided its 1 equity share of Rs.10/- each into 5 equity Shares of Rs.2/- each in the first quarter. It also issued bonus in the ratio of 5:4. Post all this, its equity now stands at Rs.10.05 crore.
MY VIEW ON THE STOCK
I hope shareholders will take time to forgtet the incidence of few years back , when the stock price was reduced by multiple times suddenly with equivalent subdivision or bonus issue and shareholder has to suffer a huge loss. The capital invested in this stock was almost ruined. I strictly recommend to make NO fresh investment in this stock.
