NEW DELHI, June 9: Jay Shree Tea & Industries is another company which could bring cheers to market players and investors. A nearly 300 per cent rise in net profit, bonus of 1:1 and a dividend of 60 per cent has reactivated this scrip. On Tuesday, the share shot up to Rs 192 from Rs 175 accompanied by larger volumes.The company managed to report a 296 per cent rise in net profit which was mainly contributed by a 242 per cent rise in other income from Rs 2.18 crore to Rs 7.47 crore. This is on account of profit of sale of ship amounting to Rs 3.17 crore.
The company's turnover has gone up by 18 per cent from Rs 192 crore to Rs 228.46 crore. This has been mainly due to the firm tea prices during 1997-98. However, the recent fall in tea prices had pulled the scrip down to a low of Rs 175.50 from its peak of Rs 250 seen in April.
Besides, the company has pruned its interest outgo by 43 per cent to Rs 3.7 crore from Rs 6.5 crore. The company managed to report a net profit of Rs 36 crore against Rs 9.31crore. The net profit is after paying a tax of Rs 18 crore, up 148 per cent from previous year's 7.25 crore.
On an equity capital of Rs 6.15 crore, the EPS works out to Rs 60 against Rs 15.15. The book value has also improved from Rs 143 to Rs 197. The scrip is quoting at Rs 192, close to its book value. The market seems to have suddenly realised the poor discounting for the scrip which is a little over 3 times its earnings.
Jay Shree is engaged in the business of tea plantations as well as exports of tea.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
