Just to give a perspective the following are pointers from Balance Sheet at consolidated level-
Book Value- 2114 crores
Trade Receivables- 1584 Crores
Market Cap- 553 Crores
Now, the market is giving a medical equipment business 1 P/B even after assuming that entire trade receivable is bad debt. This is for a company which has historically created significant shareholder value and is currently under fire due to over aggressiveness of promoters. Management seems to come to media and commit a lot every now and then but nothing much in visible as of now. However, i think there is huge value in the stock and it can easily be a 5-10 bagger as soon as there are any signs of consolidation from management (on ground).
I am planning to replace quite a few non performing stocks (5-6% of total portfolio of small/mid caps anyway does’nt seem to go anywhere in the current market condition) with opto circuits. Would really be helpful to get some comments from more experienced guys.