The Hindu Business Line : Sah Petro jumps on growth hopes

Sah Petroleums Ltd is witnessing heated trading activity of late. The stock clocked a volume of 1.86 lakh shres 0on NSE and another 1.85 lakh shares on BSE on Monday. Its average quantity per day on BSE in the last fortnight has been 3.97 lakh shares. The counter has gained 32 per cent in the past one month.

According to market sources, the counter has been attracting attention reportedly for growth potential from certain market makers.

The company, which manufactures industrial and automotive lubricants, is steadily increasing its production capacity at its blending units at Vasai near Mumbai and in Daman.

"The present capacity is 70000 kl. But every six months, we are adding 10,000 kl. By March 2007 the total capacity will be 80,000 kl," said Mr Adity Sah, joint managing director of the company. It is also looking for entry into retail segment of lubricant business too.

For the quarter ended September 30, the company recorded a turnover increase of 58 per cent to Rs 41.48 crore against Rs 26.32 crore in the corresponding quarter of the previous fiscal. PAT increased from Rs 3.01 crore to Rs 3.32 crore, placing the earnings per share at Rs 1.04.

The company also exports lubricants to West Asia, Sri Lanka and Vietnam, contributing roughly 4 per cent of the total turnover.

"We are planning to double exports in the next fiscal. Our business model is customised industrial lubricants-oriented.

"This gives us more than average industry margins. In the automotive segment, concentration is on bulk supplies, particularly to State Road Transport Corporations and OEMs", he added.