Company enjoys strong brand positioning for its products and recently started media campaign with one of the well known bollywood actress for its range of premium products. Company profit margins have improved from 4% to more than 10% in past 6 years and topline have grown by almost 26% on yearly basis. Company is a debt free company and looking for acquision opportunities in other countries to expand its reach.
Dividend payout has increased 9 times in last 10 years. In last 3 years, company has performed extremely well on bourses giving returns of 411% to investors and still looks attractively valued considering its peer group and earning visibility for next 2 years.
Promoters have increased their share holding marginally and owns 55% stake in the company.
Stock is currently trading at historic PE multiple of 7 and is giving good investment opportunity considering ongoing expansion, healthy operating margins, strong brand positioning / pricing power and better future growth and earning visibility on account of robust demand and strong marketing and distribution network.
Team of equity analysts at Saral Gyan believe that the company can deliver strong growth in terms of top line as well as bottom line in coming quarters. Stock at current market price seems to be discounted and can give returns of more than 100% in medium to long term keeping time horizon of one to one and half year.
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Saral Gyan Capital Services