India Gypsum
The company had showed a rapid sales growth of over 40 per cent in 1995-96.
Due to the slowdown in the industry and in construction activities, sales grew only by 8.08 per cent to Rs 36.62 crore. The company could establish its brand Gypboard in the Indian markets during the year.
Other income, however, spurted 55.96 per cent to Rs 34.67 lakh. This contributed around 6.5 per cent to the profit before tax.
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In spite of the tight liquidity prevailing in the market, the company could reduce its interest burden by 25 per cent to Rs 1.06 crore. Depreciation increased marginally by 17.85 per cent to Rs 99 lakh.
The company had zero-tax liability in the past few years. However, minimum alternate tax levy meant a tax liability of Rs 43 lakh in the current year. Net profit increased by 8.5 per cent to Rs 3.81 crore.
India Gypsum could wipe out its accumulated losses, and from next year, it may even be able to pay dividends.
In view of this improved performance, the scrip has already perked up on the Bombay Stock Exchange by 30 per cent to Rs 50.The stock is at a PE multiple of 18.