NeraTelecommunications Ltd and NatSteel Ltd

I was surfing the web, and came across these 2 companies. Frankly I must admit I did not spend a lot of time researching into the details of these 2 companies. This of course is in contrast to one of Lynch’s golden rules.

“You have to know what you own, and why you own it.” Peter Lynch

NeraTelecommunications Ltd: Engaged in the design, engineering, sale, distribution, servicing, installation, and maintenance of telecommunication systems and products in transmission networks, and satellite communications and information technology networks.

NSL: Manufactures and sells building and refractory materials, lime products, and road stones in the Asia Pacific. It operates through four businesses: Construction Products, environmental Services, Engineering, and Chemicals.

What strike me as interesting about these 2 companies is the high ROE (25.96% and 27.11%), high dividend yield (7.9% & 6.3%), low debt, high quarterly earning growth (for NSL), low price to book and low EV/EBITDA.

TableAnd of course the stock charts of these 2 companies.

ChartHowever their Total Cash Flow From Operating Activities through the years is erratic. NSL could be considered a cyclical stock.

NSL LTD was a 60 year old company which originally have much of its business in steel. That was sold off in 2005 to Tata Steel and restructured as such.

Since then the other part of its business have been traded with little volume for years. In 2008, they managed to change their name to NSL, which sounds more appropriate consider they do not have a steel business any more.

The group have 4 main business

  1. Chemicals
  2. Environmental Services
  3. Engineering
  4. Construction

Profits from this Chemical associate makes up 80% of its profits.

EPS growth(5 years) for NeraTelecommunications Ltd is 18.21.

EPS growth(5 years) for NSL is 14.13.

 

 

 

 

 

 

 

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About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room flat.
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