The annualised EPS for fiscal 2000 works out to a high as Rs 33.63. Even after scaling a high of Rs 300, the stock is discounted by an attractive multiple of 8.92.

After the 1:1 bonus, the equity capital has doubled to Rs 19.1 crore. On the expanded equity base, the annualised EPS works out to Rs 16.8. This discounts the current market price by a multiple of 17.8. Even at this P/E, the stock has potential for an upmove, considering its strong fundamentalsand potential for future growth.

Himatsingka Seide has recorded a 58.55 per cent jump in sales for the period ended June 30, from Rs 26.13 crore to Rs 16.48 crore in the corresponding period last year. In fiscal 1999, the company had posted a sales of Rs 84.8 crore. Interest rate in the first-quarter has remained at Rs 73 lakh, while net profit has zoomed by 54.42 per cent to Rs 8.03 crore from Rs 5.2 crore for the corresponding period last year.

For the full-year 1999, net profit stood at Rs 28.95 crore. During 1998-99, nearly 85 per cent of sales came from the UK, US and Europe, which set off the negative impact of the south east Asian crisis. The company is expected to cloak a turnover of Rs 110 crore in fiscal 2000 and net profit is expected to be around Rs 40 crore.

The largest manufacturer of natural silk in India, the company has set up a Rs 40.07-crore 100 per cent EOU for the manufacture of spun silk and blended yarns in technical collaboration with Filati Burrati of Italy in fiscal 1999. Ithas commissioned another blended fabric weaving project at a cost of Rs 29.2 crore. The spun yarn division achieved about 60 per cent capacity utilisation during the year and is expected to touch 75 per cent in fiscal 2000.

The company has completed the divestment of its holding in its loss-making subsidiary Credit Himatsingka Ltd. Himatsingka Seide now holds only 28 per cent in the subsidiary. The company hopes to set off the losses from the subsidiary by March 2000.