Sunday, November 9, 2008

The Bharati Shipyard story

Bharati Shipyard has an order book in excess of Rs.4000 crores. Let's just ignore that.
Its market cap is Rs. 220 crores. Its CMP - 80Rs. per share.

By the way, the price of Rs. 80 per share is about 40% of its current book value of Rs. 207.

Bharati's operating margins are very decent, especially the last two years.
At this price, it's current earnings yield will be about 45%.

The interesting part is this. The company's Cash and Cash equivalents as on Mar 31 is the same as the current market cap!!
Which means someone is offering his business which is generating consistent cash profits for the value of the cash in his bank account.

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