Stock Investments will bring you good rewards if you invest in good companies even if belonging to diverse sectors having long term relevance. In this post we will discuss about one such little known company which has a niche market and - in our opinion - a long term relevance.
Commercial Engineers and Body Builders Co. Ltd (CEBBCO) is
established in designing and manufacturing of full vehicle bodies of commercial vehicles and also is engaged in refurbishment of railway wagons and designing and manufacturing of components of wagons and locomotives for the railways.
The company at present is a leader in its domain and is having a competitive advantage over other players. The business model of CEBBCO looks all the more attractive stock investment option due to the fact that, in India, most of the business in this sector is still diverted to garages and other unorganised services and penetration of organised players is still very less. Due to its diversified portfolio CEBBCO has a leadership advantage and is well placed in the market.
Lets take a look at its financial data to get more insights :
| 2012 | 2011 | 2010 | 2009 | 2008 | CAGR% | |
| Sales (in Cr) | 470.90 | 219.59 | 187.65 | 116.82 | 124.97 | 43.45 |
| Profit (in Cr) | 40.80 | 5.70 | 20.30 | 1.44 | 6.79 | 56.57 |
| OPM% | 15 | 8 | 22 | 7 | 11 | |
| ROCE% | 17.5 | 6.25 | 29.75 | 13.91 | 19 | |
| ROE% | 15.8 | 2.62 | 28.52 | 2.83 | 13.72 | |
| Debt/Equity | 0.43 | 0.21 | 0.77 | 0.14 | 0.62 | |
| Interest Coverage Ratio | 7.53 | 1.89 | 5.90 | 1.31 | 2.99 | |
| Networth (in Cr) | 258.09 | 217.29 | 71.16 | 50.88 | 49.46 |
| 2012 | 2013 | 2014 | |
| PE | 12.55 | 7.5 | 6.2 |
The CMP at the time of the post was Rs.92.40
Looks like another great stock to invest in and a good pick in the new year. Happy new year 2013!!
