I am screening company to find long term investment. Currently looking into Agri-Tech (India) Limited to find whether it is a good opportunity for long term buying.
Company Name - Agri-Tech (India) Limited
• From Jan 2016 till date(14 Aug 2017) Price has moved from 7 to 60. An upside of 722.00%(NSE).
• Good profit for last two quarters.
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1
-0.14 0.39 -0.18 12.93 16.18
• P/E is 1.35 whereas Industry P/E is around 48
• Very Less debt 0.01Cr
• Very bad profit for period before 2016 Q3
• In 2016 Q4 profit has come from sale of a Land
• For 2017 Q1 profit mainly has come from Other Income as per Quarterly Result posted on their website. Means this could also from sale of some asset.
Even though Stock has rallied 722% but still profits are mainly generated from sale of asset. I am not feeling comfortable with a long term investment.
Board members please share your thought/finding on this so that i can decide whether to invest on this or not.