Visaka Industries - To be or not to be !
About Visaka Indiustries:
With focus on growth plan, the company has now grown to the position of second largest cement sheet manufacturer in India. Visaka has installed 7 factories spread across the country, producing about 650,000 tons of corrugated cement sheets per year.
The spinning plant, with 28 MURATA Twinjet spinning machines, is the world's largest installation of its kind, producing about 9,000 tons of yarns per annum.
The non-asbestos fiber board & panel division was established in the year 2009 to cater to the needs of modern construction designs. This division has a capacity of producing 30,000 tons of sheets per year.
Visaka's turnover has touched Rs.600 crores during the financial year 2008-09.
Pros: Visaka Industries is trading at a PE of 3.61 and 0.7 times its BV. Growing company with potential. Very little long-term debt on Balance sheet.
Cons: The company has uneven income income in different quarters. The short term debt is of concern but not alarming.
The investors with risk-appetite can invest few bucks in this company. Expect the dice to roll in your favor and there is a high probability, it will.
Or alternatively, put this one on your radar for purchasing at a price of 100-110. If you decide to purchase now (Price-127), keep a stop loss at 115.
Value Stock Picker
Disclaimer - I have vested interest in this stock.