SE Investments : Buy @ 205 for target 350

by khalid on 07/09/2009 · 0 comments

s e investments

Good Valuable Buy SE INVESTMENTS & Power Ltd. Face Value 10/-, trading at 205/- with target of 350/-. Risk is very very less as company stock is very valuable because Book value at 250/ and EPS 65/- for 2009-2010 and PE 2.5. In Power Sector average PE is 15, if you take this 15, stock valuation will come 750/- If you take minimum PE 10, it will come 650/-, Equity is 3 cr ; Company having lot of reserves 75cr and net Asset values was 155 cr. Company planning to give Bonus Shares 1:1.

Just Buy and hold for 1 month to 6 months with good returns from 100% to 300% for short and medium terms.

Company has 3 divisions:
1) Alternate Energy Division
2) Financial Services Division
3) Micro Credit Division

1) Alternate Energy Division – SEIL owns 2.4 MW ( .6 MW X 4), Enercon make Wind Energy Generation’s at Vani Vilas Sagar at Chitradurga, Karnataka. The clear power is sold to BESCOM.

SEIL also owns 0.8 MW Enercon make WEG installed at Bhu/Kita – Jaisalmer – Rajasthan and the clear electricity generated is sold to Jodhpur Vidhyut Vitran Nigam Limited.

2) Financial Services Division – The Company is engaged in the business of hire-purchase and leasing of motor vehicles and it also provides personal loans, business loans, loans against property, etc. to individuals/corporate bodies . The Company has formulated various Schemes for Corporate Financing keeping in view the size and nature of business.

The Company also offers Fixed Deposit Schemes as per rules, regulations and guidelines prescribed by the Reserve Bank of India. The interest rate on Fixed Deposit is 12.50% per annum, compounded monthly. The Fixed Deposits of the Company have been rated at “MA-” (Adequate Safety) by M/s. ICRA Limited, New Delhi.

3) Micro Credit Division – The microcredit division provides loans to low-income households with loan sizes varying from Rs10,000 to Rs50,000. There are two streams of microfinance lending methodology employed by the company. The microcredit division provides loans to low-income households with loan sizes varying from Rs10,000 to Rs50,000. There are two streams of microfinance lending methodology employed by the company.

Individual Lending Model – Loans are extended to individual entrepreneurs for various purposes – both agricultural and non-agricultural. The loans are unsecured in nature and have cross guarantee of other borrowers.
Group Lending Model – loans are extended to borrower groups. Normally, these borrowers are ladies and have income from various sources like dairy, poultry, handicrafts, agricultural labor and other microenterprises.

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