There has been many positive developments in the company for last 4 years:
- Topline has grown from 16 crores to 25 crores. Topline growth was maintained even in covid affected times.
- The company never went in loss. Browwing has been reduced.
- Promoter shareholding has increased from 61% to more than 70%.
- Resilience of the company is giving confidence in the future of the company.
The company has good growth opportunities. Presently the company is confined in
North and Western part of India. A large market area is untapped. Expansion of the furniture, woodworking, and construction industries, rising urban population, and increase in remodeling & renovation activities have been the significant factors contributing to the growth of the wood adhesives market. As discretionary spending is increasing in India, the company have a good tailwind.
The stock is trading at its all-time high level of around 90. Presently the company is commanding a market cap of 40 crores, which is almost 1.2 times the expected sales of the current financial year. Though the company may not come in decent profit in ner future, the company looks like a decent investment for the long term.
[Disclosure: Invested]
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