2010VP03 Trend Electronics

The Trend Electronics Limited BSE: 517228 ISIN: INE219F01017

is grossly undervalued compared to its peers

The price performance of Trend Electronics and its peer is as given
below

Company CMP Price Last Yr and Change% Price Lat Mth and Change %

Trend Electron 30.65 Over Year 21.15 44.92% Over Month 31.95 -4.07%

Videocon Indust 248.70 Over Year 133.25 86.64% Over Month 225 10.46%

Mirc Electronic 18.20 Over Year 11.21 62.36% Over Month 18.05 0.83%

Sharp India 27.55 Over Year 13.00 111.92% Over Month 26.15 5.35%
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The Performance of the company over a year was noteworthy

Change from Oct 07 to Sep 08 to Oct08 to Sep 09

Total Income Rs. 782cr to 842 Cr(7.67%)
Total Exp Rs. 748cr to 811 cr(8.42%)
Op Profit Rs. 26cr to 31 Cr(19.3%)

Net Profit Rs 2.4 to 3.71 cr (54.55%)
Capital base 0.75 cr
EPS 3.2 to 4.95 (54.55%)
Dividend 0.5 per share to 1per share (expected)

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My optimistic evaluation of likely performance is given below

Trend Electronics

Prom Hold 47.6% Pubic 52.4%

CMP Rs 32 at PE 6.5x EPS 4.95

M Cap Rs 24 Cr Ind. PE 13.5

Expectation Oct 2009 Sep 2010

Turnover Rs 1109cr

Expenditure Rs 1073cr

OpProfit Rs 36cr

Int , Dep &Tax Rs 28cr

Net Profit Rs 8 cr

EPS Rs 10.66

OP Margin 3.25%

My Target Perception Rs 96 at PE 9x : Mar Cap 72cr

Growth (2009-2010) Revenue 31.7% EPS 215% over 2008-2009

Kindly evaluate independently. I am not responsible for any loss