DP Money Watch - Hold and Strike It Rich with Ashish Polyplast

Gujarat based 12 year old Ashish Polyplast’s share, is a penny stock available at less than Rs. 3 (CMP Rs. 2.8) per share of Face Value 10. Its Equity Capital is Rs. 3.4 crores with a Book value of 11. The Company has a capacity of 450 tonnes of PVC Hoses/Pipes and caters to the need of agriculture, construction and infrastructure. Its Hoses/pipes ranging from a diameter of 5 mm to 50 mm and thickness of 2.5mm to 6 mm are sold under the popular brand name of Realon. The Company is now doubling its capacity and adding new products like sprinklers and drip irrigation systems which may take it to the league of Jain Irrigation Systems in the next few years.

Ashish Polyplast is an almost debt free Company, and with market capitalisation of just Rs.1 crore, it’s share appears to be highly undervalued. The Replacement cost of it’s plants having a capacity of 900 tonnes after expansion of PVC Nylon braided Hoses and Flexible PVC Hoses would atleast be Rs.10 crores.

Keeping in mind the future potential of this company and it’s existing low price a buy with a long term hold of 2-3 years is recommended.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision.

Tags: money,stocks,equity,ashish,polyplast,pipes,irrigation

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posted by Ashok in Financial Markets |