Ador Fontech

On the financial front, the company has been a consistent performer with respectable sales and profitability right since 1992. Notably, even during the adverse times, it has never made losses and has always paid dividends.

The company has declared a dividend of 50% for the year ended March 2007 as against 40% in FY 2007. The company has increased dividend rate consecutively for the past four years. Going by the trend one can expect dividend of 60% for FY 2008, giving a dividend yield of 6.25% at the current price.

One can expect the company to report sales and net profit of Rs 92.31 crore and Rs 6.57 crore for FY 08. On a small equity of Rs 3.50 crore and face value of Rs 10 per share, EPS works out to a solid Rs 18.8.

Current price of Rs 96 discounts the FY 2007 actual EPS of Rs 14.6 just 6.6 times. P/E on FY 2008 EPS of Rs 18.8 falls to even more attractive 5.1 times. This means the company is available at a market cap of Rs 33.60 crore, which is only one-third of its expected FY 2008 revenues.