Paushak Ltd:-Buy/sell: multibagger

Scripscan:Paushak Ltd




Story:Paushak Ltd, an Alembic Group company, situated 40 kms outside Vadodara (Gujarat) was established in 1972. Paushak has mastered the production of phosgene gas and phosgene based speciality chemicals/intermediates through indigenously developed technology. These chemicals are used in diverse fields such as pesticides, pharmaceuticals, dyes, plastics, perfumeries etc. Over the years, the company has established a multi-product capability in manufacturing phosgene and its derivatives. The experience of the company in the last 25 years has given it indigenous process development capability. It has also handled Custom Synthesis and Contract based research. Paushak has production capacity of 150 tonnes per month of phosgene with a turnover of US $3.5 million p.a. or about as Rs.16 crore.It has an equity base of just Rs.3.21 crore that is supported by huge reserves of around Rs.22.43 crore (Reserves is more than 6.98 times of equity). The promoters hold 66.70% while the investing public holds only 31.5% stake in the company.The company reported 30crs of sales and 3.7crs of profit for fy10-11.Its expected to generate 20% growth in both sales and bottomline for the present fiscal.At present prices its quotes at 4 times its forward earnings.Stock suffers from low liquidy due to tiny equity base.Its a hold at present levels.

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