Gujarat NRE Coke has come out with sterling results for the third quarter. The topline has grown to Rs248 crores in Q3 2007 from Rs102 crores in Q2 2007. The net profit for the quarter is Rs49.90 crores which translates to an EPS of Rs1.45 (diluted) on a quarterly basis. The net profit margin has improved to 20.58% compared to 12.30% during the previous quarter.
There are very many fundamental changes happening in the company which I have earlier mentioned here. I am quoting below a snippet posted in Deepak Singh's blog "State of the market" on Gujarat NRE:
"Gujarat NRE Coke - A batch of foreign investors led by an Australian fund were seen buying shares of Gujarat NRE Coke in good numbers. According to these investors, floods in Australia, freezing weather in China and transport bottlenecks in Indonesia will stoke a sharp rise in the price of coal in other parts of Asia. JP Morgan recently raised its forecast for 2008 coking coal prices to $140 a tonne, a 42% jump from last year's agreed price of $98.38. Its previous estimate was $120 a tonne. It is in this light that foreign investors are accumulating shares of mining major Gujarat NRE Coke in good numbers...Economic Times"
With the projected rise in the coal prices and Gujarat NRE owning huge coal mines would stand to benefit. I continue to remain bullish on the stock.
Disclaimer: This is not an invitation to buy or sell shares. The views expressed are my personal opinion and please consult your financial planner before taking your decision. I own the shares of Gujarat NRE Coke.