The company is basically into plastic moulding furniture business like nilkamal and supreme and its furniture goes with the “prima” brand. The company is debt free and what increased my interest in it was this -> http://www.bseindia.com/corporates/anndet_new.aspx?newsid=a6b8d8b3-a77e-40a4-9c01-a7015aba8938
They have closed their loss making ACP division and are now going to concentrate solely into plastic moulding. With the loss making unit going (which i assume they would sell of some 1.5cr - machinery), the bottomline would get a fillip as the cash burning unit is gone. Prima has a cameroon based JV which is a very profitable venture for them. I believe it was started few years back and as per their AR they were expecting this JV to start paying dividends in future. This year they have declared their maiden dividend to Prima which is 1.6r. This could embark the start of dividends from this company as this JV is doing very well.
Their last five years financial performance has been impressive which is mentioned here:
The stock is generating positive cash flows and has a good and consistent dividend payout. What’s more that its available at single digit PE of around 8 (that too trailing).
Disc- Slightly invested. These are my personal thoughts on the business and not a recommendation to buy or sell.