NSE has made it tougher to migrate to the main board. A few companies which did not meet the criteria were allowed to migrate (I don’t think NSE should have allowed them to) but I believe those remaining small market cap companies like Pulz will stay in SME for the next few years.
I am invested in this company primarily because it seems undervalued at less than 15 PE now and much lower PE earlier, no debt and a good growth rate. The company imports high-end audio components from Europe and assembles audio devices in their factory near Mumbai. Their products seem to have great quality. They export to South-East Asia and other countries, but India is their largest market.
One of the company’s key market is multiplexes. Now with several blockbusters in the charts this year, the demand for quality audio should increase. Pulz has an offering named AmpliX in collaboration with PVR Inox.
A few things I don’t like about the company. The company does not share information about the future such as the plan of action, the projected revenue, etc., except for a few lines in the annual report (AR). I have written to them multiple times to make presentation and/or arrange concalls, but they never respond. Personally, I believe any company that does not do concalls/presentation should not be on the main board. They have very low market share in mass markets such as home theaters although they have a few new offerings listed in the latest AR. By their presence in multiplexes, they have been able to build brand value but strong presence in mass markets is important for scaling up.
Disclosure: Invested from lower levels.
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