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. Company is also launching innovative products and enjoy the advantage of early entrant with least competition.
Another positive is that company has not diluted its equity since last many years and current expansion can be managed using cash surplus. And that's not all, promoters have been purchasing this stock from open market since last one year and increased their holding by almost 1% which simply shows that company is set to perform better in next couple of years.
Stock is currently trading at historice PE multiple of 6.5 and is undervalued when compared to its peer group. Company has recently declared dividend and dividend yield is above 2%.
Team of equity analysts at Saral Gyan believe that the company will greater heights in terms of top line as well as bottom line. Stock at current market price can give decent returns with one to one and half year time horizon.
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Saral Gyan Capital Services