Swasti Vinayaka Art & Heritage Corporation Ltd : A HIDDEN GEM
CMP : 4.14
BSE CODE :512257
Market Cap : 16 Crores
LISTED ON : BSE
TARGET : 10/12/16
TIME-FRAME : 12-16 Months
History of the Company :
Swasti Vinayaka Art & Heritage Corporation Ltd was incorporated way back in 1985. It considers itself custodian of Indian art and craft heritage and aims to preserve , nurture and revive priceless historical traditions , via rare pieces of aesthetic beauty that are individual and exclusive.
The company deals in couture jewellery that transverses the territory of mere ornamentation into that of high art. The company also deals in signio paintings that throw the spot light on the distinctive Indian miniature technique, via canvases that tell tales of Hindu epics, as well as Islamic histories and chronicles.
Off late the company has also entered into segments like corporate gifting, gemstone carving, taking part in various art fairs. The company has taken efforts to reach global markets and is also exporting various articles like signio paintings, miniature art , gemstones etc. to countries like UK and USA ; where it is able to built a loyal base of customers gradually.
Financials of the Company :
- Profit After Tax (PAT) for the year ended on 31st March,2017 has been reported at Rs 2.57 Crore against PAT of Rs 2.09 Rs for March,2016.
- As per the numbers as on 31st March,2017 the company has generated Return on Equity (ROE) of approx. 30%. At an EPS (Earning per share) of 64 paisa the share is currently trading just at a P/E ratio of 6.
- The company is a regular dividend paying company and has paid dividend for past 10 consecutive years.
- Current year the company has declared dividend of 20 paisa per share which at current price of 4 Rs per share generates a dividend yield of approx. 5.00% which is tax free and very attractive in nature.
Investment Rationale : Why to Invest in this Stock ??
- Shareholding of the promoters in the company is 51.00% as on 31st March,2017 which strongly indicates interest of promoters in growth of the company.
- With the Indian economy poised for growth and increased recognition and awareness of art the management is confident of delivering better results in the future.
- It is the only listed player in the segment. The company has gained experience in the sector and will be able to leverage the same in future to generate super profits from the sector that is in growing stage in our country.
- Debt to equity ratio has gradually come under control as company has repaid debt in past 3 years.
- The company has dividend yield of 5.00% at current price. The history of company profitability is great and has paid dividend for past 10 years consecutively.
- At current price of 4.14 per share and EPS of 0.64 , the stock is presently trading at an attractive P/E ratio of 6.
- At a forward reasonable P/E of 15 and EPS of 1.00, we expect the stock price to soar higher atleast to 15-16 levels in coming time.
Disclaimer Note: The above is not a research report but information as available on public domain and it should not be treated as a research report. Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.
Disclosure: It is safe to assume that I might have Swasti Vinayaka Art & heritage Corp in my portfolio and hence my point of view can be biased. Readers should peform own due diligence before investing. We do not assume any responsibility or liability resulting from the use of information , judgements and opinions for Trading or Investment purposes on the Blog.
