INSUBCONTINENT EXCLUSIVE:
NEW DELHI: This stock surged 58 per cent in 2019, 43 per cent in 2018 and 57 per cent in 2017, 76 per cent in 2016, and a whopping 3,267 per
cent in last 10 years.
Up 232 per cent from its 52-week low, shares of this debt-free and regular dividend payer are now up 81 per cent so
for the stock over Thursday's high of Rs 3,398 level
The company supplies critical process equipment and systems to chemicals and pharmaceutical industries
It is engaged in segments namely glass-lined equipment (GLE), heavy engineering and proprietary products.
In a recent conference call, MD
Tarak Patel said GLE still has the biggest order backlog of 50 per cent
About 20 per cent of this backlog is for heavy engineering orders and the rest for proprietary products
Analysts said the domestic GLE
market is small, and thus, the company is continuously trying to diversify into the non-GLE segment.
Patel said GLE has an order book of 800
units, which may be enough for the next four to five months
COO Ashok Pillai said the company expects more revenues from the heavy engineering space
We have been also registered now with EIS
It would need to increase other businesses, especially heavy engineering
The company's market share in GLE segment stood at 55 per cent
The business grew at 30 per cent in the first nine months of FY20
Heavy engineering is a more competitive business and margins are lower than that of GLE.
GLEs have applications in pharmaceutical, chemical,
petrochemical, pesticide and food industries
strong brand name, sticky client base and superior growth in non-GL deserves a premium valuation
However, the recent run in stock price limits upside from current level
Wealth said.
The company reported 59.60 per cent rise in profit at Rs 21.10 crore for December quarter on a 26.3 per cent YoY rise in sales
Despite being bullish on the stock and the forthcoming growth in the sector, we recommend a cautious stance and advise booking profits to
