Recently, this company has announced expansion in its manufacturing facilities which is a very good signal to maintain growth momentum and robust operating margins in coming quarters. And that's not all, promoters have been purchasing this stock from open market since last one year and increased their holding by almost 2% which simply shows that company is set to perform better in time to come.
Stock is currently trading at PE multiple of 3.5 and hence seems to be undervalued compared to its peer group. Company has recently declared dividend of Rs. 1.50. Dividend yield work out to be almost 4% which gives huge margin of safety at current market price of the stock.
Team of equity analysts at Saral Gyan believe that the company is all set to repeat its past performance by delivering strong numbers in terms of growth and profitability in FY 2011-12. Stock is trading at attractive valuation when compared with peer group and can give decent returns with one to one and half year time horizon.
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Saral Gyan Capital Services