Ashish Chugh, Investment Analyst & Author of Hidden Gems is of the view that patient investors can buy Techtran Polylenses with long term perspective.
Chugh told CNBC-TV18, “Techtran Polylenses is a stock which investors with patience should buy. It is quite possible that the stock may not see much movement even if the market may move up. To give you a background, this company manufactures plastic of thalamic lenses, this company is a largest manufacturer of plastic of thalamic lenses from India, the plant is located in Andhra Pradesh and the total capacity is about 5 million lenses per annum even though the company’s products are well-known for its quality, the company is failed to set up a good distribution and marketing channel over the last seven-eight years. This was mainly because of scarcity of funds and also due to maybe the lack of business sense of the promoters. What makes us optimistic about the future of the company now is that a few months back, this company has been acquired by Mr Jayaram Chigurupati who was the promoter of Zenotech Lab Ltd. Now Dr Jayaram earlier was the managing director of a subsidiary of Dr Reddy’s and he was largely responsible for establishing the presence of Dr Reddy’s in a number of emerging markets. Thereafter he floated the Zenotech Lab and then he sold Zenotech Lab to Ranbaxy Ltd and he also sold his own personal stake in Zenotech Lab to Ranbaxy. If you look at the financials of the Techtran Polylenses, FY10 sales were about 26 crore, this company made a small profit of about 1.3 crore. For nine months sales are close to 20 crore with the profit after tax was about 1.2 crore, the positives about this company is that this company is the largest manufacturer of plastic or thalamic lenses, this company has got a state of the art manufacturing facility in Andhra Pradesh and where it was lacking was setting up of a good marketing channel and also scaling up of operations. I think with the change in the promoter group, this can now happen.”
He further added, “At the current market price of about Rs 20-21, the marketcap of the company is about 28 crore. So I believe that the stock has been rangebound for a few months now and I don’t see too much of downside from these levels but I would like to caution that this stock may remain rangebound, it may move in a narrow range till the time the results start coming in and the result start reflecting in the financials of the company. So this is not a stock for investors who would like to see the NAV on a daily basis. This is a stock which can test investor’s patience and this is also not a stock for trading or punting because the impact cost can be very high. So only with the long-term investors, with the slightly higher risk appetite, can venture and accumulate the stock at the current levels and on declines.”
Source: Internet (moneycontrol.com)
No comments:
Post a Comment