I appreciate the rules of the Forum. The company came to my notice when I was looking for companies in Technical Textiles field. Appears that the company is in right industry and if they can execute the plans well, we may see decent appreciation in share price which is currently less than Rs.30
I found the following positives about the company
1. Management change:Yes new MD since 2012;
2. Industry tailwind: Yes belongs to technical textiles;
3. Quality products. Yes 20% exports and marque clients like Asian Paints Kansai Nerolac, JK White, Jain Irrigation etc. in domestic market;
4. Share holding: management stake increased; about 21% is held by small investors;
5. High ROCE: more than 28%;
6. Growth rate: more than 30%
7. Low equity: 57.98 lakh shares
8. Valuation: about 20 crore.
9. Trend. Appreciated more than 100 % since Mar 2016
The negatives noticed about the company are
1. Low volumes and could be difficult entering and exiting the stock
2. No dividend paid after 1998, hope fully this may change once cash flows improve
3. Not much is known about the promoters.
All the above information is taken from publicly available sources.
Disclosure: Invested about 2% of my portfolio