YUKEN INDIA

Yuken India manufactures hydraulic equipment including hydraulic pumps for industrial and mobile applications, hydraulic valves, mobile valves and complete hydraulic systems to suit customer-specific requirements.
Hydraulic devices are mainly used in the heavy engineering industry for automation. With automation the buzz all around, Yuken’s products have a good demand. This perception of good demand has been reflected in the share price but unfortunately it has not been seen in the financial performance.
For FY09, the company posted net sales of Rs.105.48 crore and on this, it posted a net profit of a meager Rs.99 lakhs. The company had posted a loss in Q3FY09 but it managed to turnaround in Q4FY09 with a tiny net profit of Rs.20 lakhs.
The stock enjoys fancy on account of its brand name. Its been around for the last 31 years, with most manufacturers of Original Equipment using Yuken as their preferred partners for hydraulics. Yet given the current performance, an EPS of Rs.3.30 on a FV of Rs.10/share, a PE of over 18 at the current market price, comes forth as being more than fully priced. thanks