PSU Public Offerings - Losing their flavour

Public Sector Undertakings have almost always been excellent investment opportunities. The Initial Public Offerings (IPOs) of NTPC, Power Finance Corp and Rural Electrification Corp have created immense wealth for investors in the past years.

These firms generated better returns than their private counterparts in those times and also allured investors with 5% retail discounts.

Many big-ticket IPO/FPOs are waiting to hit the hit the capital markets, ONGC and SAIL the prominent ones in the list. These offerings have been delayed due to turmoil in the Indian markets backed by the issues emanating from the U.S and EU Zone. If newsmakers have to be believed, ONGC FPO is supposed to hit the market in Sep-2011 and SAIL in this fiscal year.

Following is the list of public sector offerings that hit the capital markets in the last 2 years. The data also throws some light on grading’s, subscription in retail category. Additionally, data also has a mention of overall subscription status of these offerings.

The list comprises of total 15 PSU offerings in the last 2 years. Out of these, 8 are Initial Public Offerings and others being Follow-On Public Offerings. This list includes the biggies like Coal India IPO and gargantuan FPOs of NMDC, NTPC, Power Grid and PFC.

As can be seen, all the PSU IPOs in the list are graded 3 (Average Fundamentals) to 5 (Strong Fundamentals). All these 15 offerings collected 63635.56 crores, Coal India leading the pack at 15199.94 Crores.

Performance of PSU offerings:

Source : BSE Data

The data in the above list analyzes the listing date performance of the public offerings and as on date absolute returns of the same.

Listing Day Performance:

Coal India which had a marvelous listing emerged out to be a clear winner in the pack with 39.73% returns. The next in line is MOIL which generated 24.40% returns on its debut. REC FPO which hit the market in Feb-10 generated 19.14% returns on its listing day.

5 out of 15 issues plunged in red on listing days on closing basis with PTC India Financial suffering the most, almost to the tune of 11% drop from its issue price. The rest in the lot, posted meager to decent returns in the range of 1-10%.

However, the losses in PSU offerings are less in comparison to the private players which may be very volatile in terms of returns. Still in a broader sense, it is still discomforting for the investors to see the public offerings slipping in red vis-à-vis its issue price on the first day itself.

As on Date Performance:

As on date, 11 out of 15 stocks have plunged in red in comparison to respective issue prices. PTC India Financial Services have suffered the most with almost 41% drop below its issue price. Shipping Corp – FPO and Punjab & Sind Bank – IPO are next in line with 38.64% and 37.67% drop respectively.

Coal India, yet again, tops the pack with 53.04%. The others which managed to show up in green are Power Grid, United Bank and Oil India.

MOIL which made its listing debut at 551, ended the listing day at 466.5 with gains of 24.40% from its issue price is now quoting at 302.05, a loss of 19.45% vis-à-vis its issue price. It has witnessed a slump of almost 45% from the listing day high.

Oil India has been at the other extreme, which managed to improvise its listing day performance to put up a better show, as on date. Oil India debuted at 1019.00, ended the listing day at 1140.55 and currently quotes at 1300. It has been witnessing an upsurge unlike MOIL which faced a continuous downfall.

Power Grid, Coal India and United Bank are few others in the list which resembled Oil India and gained on their listing date performance to put up a good show, as on date. Apart from these 4, all others have witnessed a downfall when their listing day performance is compared with their as on date performance.

Looking at the broader context, all this happened with a sharp downslide in the secondary market because of uncertainties in the global economy. But still analyzing this pack, the PSU offerings have also witnessed huge volatility in terms of returns and that too in a short span of time. This kind of volatility is more attributed to non-PSU offerings and that too with lower ratings.

This raises some questions on pricing aspect of the issues w.r.t the financial strength of the company. Additionally, it also questions the grading’s assigned to the some of the new kids on the block.

These are few points which require a great deal of thought. This is so because if there is nothing or very little left on the table for a retail investor, he would like to look for better investment alternatives. All this can be harmful in the context, especially when the government is looking for the means to increase the retail participation both in primary and secondary markets.

IPOs in 2011: An Evaluation

IPO activity in first half of 2011 has mainly been a dull affair with no big names hitting the bourses. Although the Tata Steel’s and PFC’s of the world came up with their huge FPOs but couldn’t manage any blockbuster success. The FPOs are not generally expected to spring up any surprises in terms of investor returns, so it is very much in line with the expectations.

On the IPO front, 22 IPOs managed to list on the Indian bourses since January 1, 2011 till date. The following is the list of IPOs, arranged on the basis of Listing Day Returns w.r.t respective issue prices.

Listing Day Returns:

Analysis:

a) The top 5 listing day returns were posted by IPOs which have been either rated as Grade-1 (Poor Fundamentals) or Grade-2 (Below Average Fundamentals) by the rating agencies.
b) 2 of them, Birla Pacific Medspa and Fineotex Chemicals, posted whopping returns of greater than 100% and emerged out as “Listing Day Stars”.

c) Only 2, Grade-3 or Grade-4 IPOs hit the bourses in this time-frame and posted listing day returns of 0.71% and – 11.07% respectively.

d) 10 out of 22 IPOs plunged on their listing day itself. Omkar Speciality had an embarrassing debut, suffered the most with a decline of greater than 50%.

e) 9 IPOs were assigned a grade of 2,5 IPOs were assigned a grade of 1 and 1 of them was assigned multiple grades of (1,2) by different rating agencies.

f) The average grade of these IPOs comes out to be 2 (Below Average Fundamentals), disseminating the quality of the IPOs in a broader perspective.

(For IPOs with multiple grading’s, highest rating taken into account for calculating the average grading).

Returns (as on 14^th -Jul-2011):

 

Analysis: 

a) 4 IPOs have posted returns of more than 100%.3 out of these 4 are Grade-2 IPOs.

b) Fineotex Chemical continues it’s dream-run, posting returns of over 300% as on 14-07-2011.This IPO also had a dream debut on it’s listing day and posted returns of more than 100%.
c) For the rest, dismal performance continues here as well. Only 9 out of 22 IPOs managed to stay ahead of their issue prices.

d) Barring one (Lovable Lingerie) which is a Grade-3 IPO, all of these 9 are either Grade-1 or Grade-2 IPOs.

e) 13 out of 22 are quoting below their issue prices.8 of these 13 have plunged within range of 0 to 50% of their issue prices.

f) 5 IPOs are generating losses to the tune of 50 to 82 percent against their respective issue prices.

g) Acropetal (Grade-3) which had a decent listing has witnessed a bloodbath after that, has plunged the most, 80% below it’s issue price.

Caveat Emptor: IPOs tend to be glamorous but they can be deceiving at the same time. Investors generally park their money in hot ‘new offer’ for 15 days and expect a wonderful ROI upon listing. Though we can’t forget the Coal India and Jubiliant Foodworks of the world but we cannot ignore the other side of the story.

There are good companies available which have potential to grow as well as create wealth for investors. But for riding on the IPO bandwagon, one has to bear some things in mind.

1) Don’t go for Grey Market Premiums as they can be misleading; instead look at the company fundamentals.
2) Don’t go for “Word of Mouth”; instead do some research for the promoter track-record.
3) Have a look at the “Objects of the Issue” and “Future Prospects” and the synchronization between the two.

4) Don’t be allured to the lower tick sizes. A comparison of company’s EPS and P/E with it’s industry peers will give a good idea about fair price of an IPO.

MF Returns: SIP vs. Non -SIP

I was in the process of collating the data for prospective candidates for MF investments for my family, last weekend. I thought of evaluating the performance of some select funds. These funds are primarily from diversified equity and balanced (hybrid) category of MFs. Most of these are part of the pack of Top 5 funds (on historical returns basis) in their respective categories.

I analyzed their performance on varied time-frames i.e 1 year, 3 years and 5 years returns both on SIP and Non-SIP Parameters. Non-SIP means the lump sum amount was invested in the beginning of the year itself.

 Time-Frame: Jun 10 -Jun 11

1 year returns: Analyzing the performance on yearly basis, the highest SIP returns amongst these surprisingly emerged from a balanced fund, Birla SL 95 Fund (4.05%) and Reliance RSF Equity yielding the lowest returns of the pack(-5.67%).

In the Non-SIP category, HDFC Equity generated highest returns of 16.89% and a lowest return in this pack was from HDFC Prudence (1.12%).However, Reliance RSF Equity again generated the lowest returns (7.56%) in the “diversified-equity” category.

The maximum variance of 14.44% in SIP vs. Non-SIP returns was from HDFC Equity and minimum of 0.46% from HDFC Prudence.

Time-Frame: Jun 08 -Jun 11

3 year returns: In last 3 years, the highest SIP returns amongst these emerged from HDFC Equity (29%). HDFC Prudence yielded topmost 27.47% in the above mentioned “Balanced” pack. DSPBR Balanced yielded 17.14%, the least in the pack.

In the Non-SIP Category, again a balanced fund, HDFC Prudence (18.61%) emerged out as a winner. The lowest gains (8.21%) posted by Reliance Vision in the pack.

                         Time-Frame: Jun 06 -Jun 11
                         * These funds are in operation for less than 5 years

5 year returns: Analyzing returns on 5 years basis, the highest SIP returns amongst these emerged from HDFC Prudence (19.41%). HDFC Top 200 posted highest (18.24%) in the equity category.

In Non-SIP category, Reliance RSF equity posted 20.72%, outperforming all the funds in SIP and Non-SIP Category.UTI Dividend Yield posted 20.31% and ended up a close 2nd.

The maximum deviation in SIP vs. Non-SIP returns in 5 year period is in Reliance RSF Equity (-4.05%) and minimum deviation is in HDFC Prudence (0.22%).

Broad Perspective: The following observations were extracted from this exercise (particular to this data set).

• In the 1st year, as expected, Non-SIP returns are more in comparison to SIP returns. This is in conformance to the view that short-term investments in SIP will not give your returns an edge over the Non-SIP investments.

• Analyzing the 3 year returns, the SIP returns outperformed Non-SIP returns in all cases. This is the most important aspect of SIP investment. SIP can provide good return to you only over long period that is over 3 years or more.

• Analyzing the 5 year returns, SIP returns on an average match the Non-SIP returns. This needs to be analyzed further with other data sets as it might be one of an off-case (specific to this data set).

• Last but not the least, the golden principle is, SIPs are supposed to work because of “rupee cost averaging,” which is based on the knowledge that markets will go up and down and up again.

Castrol India: Stupendous Performer

Industry: Oil & Gas/Lubricants

Profile:

Castrol India is a part of BP Group Worldwide and was incorporated in 1979. Castrol’s Indian Association traces back to 1910, when C C Wakefield & Company made an entry in market with automotive lubricants. It was first overseas branch of C C Wakefield & Company and it started as a trading unit.

Castrol India is the second largest player in the Indian Lubricant Industry with a market share of around 22% and is the market leader in the retail automotive lubricant segment.

Ownership:

Castrol India Limited is a Public Limited Company with 70.92% of the equity held by Castrol Limited UK (part of BP Group).The FII’s and Insurance Companies hold 7.27% and 5.04% respectively, as on 31st March 2011.

If we go by the trend of the last 4 SHPs posted, FIIs have increased exposure in the stock along with the Institutions. On the other hand DIIs, Non Institutions and Bodies Corporate have shed their stakes in the similar time frame.

Product Profile:

•   Industrial - Castrol metalworking fluids, cleaners, corrosion preventives and lubricants.

•  Oils - Cylinder oils-crosshead, crankcase oils-crosshead, truck piston engine oils,   hydraulic oils, gear oils, compressor oils, turbine oils, refrigeration oils, emulsifiable oils, multi-grades, heat transfer oils and greases.

 

Recent Corporate Actions:

* The 150% dividend comprises of 50% final dividend and 100% special dividend.

For the year ending December 2010, company has declared an equity dividend of 150% amounting to Rs. 15 vis-à-vis an equity dividend of 250.00% amounting to Rs. 25 per share for the year ending 2009.

Financials:

Quarterly

                                 Figures (In Crores), Fiscal Year End is Dec-31

QoQ Analysis: Analyzing Q1 numbers for this fiscal, the topline has shot up by 7.89% at 753.2 Crores (31-March-11) and bottom-line has increased 29% at 136.6 Crores (31-March-11).The operating profit of the company has also risen 15.86% to 181.9 Crores vis-à-vis 157 Crores in the previous quarter. The profitability has increased, despite the fact that total expenses has risen 5.58% on a Q-o-Q basis. PBITDM (%) and PATM (%) has shown a decent increase on a quarterly basis.

YoY Analysis: On comparing the Q1 numbers of this fiscal with Q1 of FY10-11, the topline has increased by 14.82% on a Y-o-Y basis. The bottom-line has increased impressively by 16.55%, despite the fact that total expenses has also risen by 20.02% in a similar time-frame. The rise in total expenses is primarily attributable to increase in raw material cost. Though the other income component has also contributed it’s bit in the increased profitability.

Yearly

 

                   Figures (In Crores), Fiscal Year End is Dec-31

 

Analyzing the yearly numbers, the sales figure has shot up 17.82% to Rs. 2742.90 Crores as on December-10. The operating profit has shown up a whopping increase of 25.29% to 733.2 Crores vs. 585.2 Crores in the previous FY end, considering the fact that total expenses has increased 15.31% to 2009.70 Crores.

CAGR basis: On a CAGR basis, the company has posted an awesome increase of 34% in the last 5 years. The sales have also increased 8% on a CAGR basis. The operating profit has also risen at a rate of 9.71% despite the fact that total expenses have also risen at the rate of 7% in the same tenure.

Returns:

The recent quarter has been the best quarter in the previous 4 quarters, posting returns of 19.12%. The last quarter of calendar year 2009-10 was the worst quarter, posting returns of -9.44%.

The stock has posted YTD returns of 14.64% till 30-Jun-11 and 18.83% returns as on 30-jun-11 on a year-on-year basis.

The stock has made a new 52 week high of 588.35 on BSE today itself and closed at 576.80, rebounding impressively from it’s 52 week low of 380 on BSE which was achieved off late on 28-Feb-11. The stock has posted humongous returns of 51.78% since then and that too in a very short span of time.

• Castrol India Ltd. has posted impressive growth in topline and bottom-line over the years even in the tough times. The surge in raw material expenses continues but company has still posted a robust growth in Operating Profit.

• Besides this, company has strong brand power in the markets and enjoys a debt free status, high ROEs, distinctly superior delivery of products and improving cash flows. Considering these factors a higher PE multiple for the company vis-à-vis its peers is justified.

• Last but not the least, company enjoys a brand-loyalty and the promoters also have vast experience and expertise in this industry.

References:

1) http://economictimes.indiatimes.com/

2) http://www.bseindia.com

3) http://www.castrol.com

4) http://www.finalaya.com/

Outlook:

Promoter Pledging : Companies on a sticky wicket

The recent case of GTL group companies which suffered heavily on Monday has originated few new issues on the bourses. The concerns revolve around debt repayment, pledged shares and fund raising.

Shares of telecom infrastructure company GTL plummeted Monday due to concerns over debt repayment, pledged shares and fund raising and even the promoters were caught unaware of the difficult situation. The chairman's repeated assurances it had not defaulted and that its business fundamentals remain strong did not help the cause.

GTL shares declined as much as 62.3%, the sharpest in 54 months, to Rs 127.50, and GTL Infrastructure as much as 48.5% to its all-time low of Rs 15.25 in a an already suffering market.

Suddenly, the promoter pledging keyword is causing a big drag on shares. If we go by the trend, the shares of the companies in which promoters have pledged significant part of their holdings, they have corrected more than the broader market.

RBI continues it’s rate hike spree to douse inflation. The recent rate hike on last Thursday was tenth since March 2010.Though the stubborn inflation has not shown any signs of easing, but these rate hikes may lead to new fears for the promoters who have pledged their shares.

The fears are that promoters would be unable to meet the corresponding increase in interest costs resulting in sales by non-banking finance companies (NBFC), which lend to promoters against their shares. A lot of the promoter funding is done by NBFCs which have an appetite for high risk funding at high interest rates. Their own cost of funding has gone up after the rate hikes and promoters’ ability to pay back borrowed money is under question, resulting in a sell-off in many cases.

A lot of NBFCs had been caught on the wrong foot in December 2010, when there was a sharp correction in midcap stocks but this time NBFCs are more alert to the possibility of sudden and deep downward price movements.

Stocks with a high proportion of pledged promoter shares are particularly vulnerable in a bear market. The following is the list of companies on the basis of percentage of promoter holdings pledged with lenders and also the company is operational in the F&O segment.

Out of the 20 scrips mentioned above, 6 are from real estate industry .Companies in the infrastructure and realty sectors are among the worst affected with promoters said to be cutting costs by decreasing spends on advertising and marketing. S Kumars, Orchid and Unitech which are constituents of this list have also faced selling pressure in the last couple of days, though not as vigorously as the GTL duo which continues to suffer.

The stocks operational in the F&O segment suffer a bigger hit in comparison to their non F&O compatriots. The bears start shorting the stock futures first and once the futures become weak, the effect passes on to the stock price as well. The usual differential between the stock price and futures is not more than 1% so any fall in futures leads to a proportional fall in stock price

The falling stock price makes the task tough for promoters as any fall below a certain price level induces a situation of promotes receiving margin calls from lenders. The promoters either has do a part payment of the loan or deposit more shares with the lender, as collateral. If the promoters fail to do either of the two, lenders will dump the shares to recover their money and fulfills the bear’s wishes as they square-off their positions by managing a net profit.

Investor generally rushes in for a buying spree, allured by the falling stock prices and in the process loses money or remains invested in the stock facing a huge loss.

Though the kind of 15-20% intra-day fall in all such companies is not fundamentally justifiable, but one needs to be cautious investing in companies with high proportion of pledged shares.

References:

1) http://www.finalaya.com/
2) http://www.bseindia.com/
3) http://economictimes.indiatimes.com/
4) http://www.dnaindia.com/
5) http://www.business-standard.com/

VA Tech Wabag : A Promising Mid-Cap Bet

History:

The company was incorporated as a public limited company called Balcke Durr Cooling Towers Limited on February 17, 1995 at Chennai. The name of Company was changed to Balcke Durr and Wabag Technologies Limited on September 12, 1996 by a special resolution of the members dated July 29, 1996. The name of this company was further changed to VA Tech Wabag Limited on April 4, 2000 by a special resolution of the members dated March 10, 2000.

 

Industry: Engineering.

Business:

VA Tech Wabag Ltd. designs and builds water and sewage treatment plants. The Company constructs sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse plants. VA Tech Wabag serves municipalities and customers in the power, steel, and oil and gas industries.

Shareholding Pattern:

As on 31 March 2011, the promoters hold 31.02% of VA Tech while public shareholding (excluding Institutional investments) was 24.87%.The institutions hold 44.11% of VA Tech.

In Institutions category, Mutual Funds/UTI hold 17.03%, FI/Banks hold 0.16%, FII hold 24.47% and Foreign Venture Capital investors hold 2.47% in VA Tech.

Analyzing the trend of last 3 SHP’s posted, FII holdings has risen from 12.34% (as on 11-Oct-10) to 24.47% (as on 31-Mar-11). DII holdings has dipped marginally from 22.15% to 19.64%.In others, it has changed from 34.29% to 24.87%.Going with the trend, FIIs continue to like this stock and DIIs have also not distanced themselves much from this stock.

Corporate Actions:

The company has recently announced a dividend of Rs.10 (200%) on it’s Face Value of Rs. 5. in the board meeting dated 26-May-2011. Also, the company BOD’s have approved sub-division of shares from Rs. 5 to Rs. 2 in the same board meeting.

Analyzing VA Tech Wabag:

The company, which has reported a 35 per cent growth in net profit for 2010-11 over the previous year, sees rising costs as a challenge that can be addressed through improved efficiencies, growth in new markets, and focus on O&M contracts which offer twice as much margin as EPC contracts.

For the fourth quarter ended March 31, 2011, VA Tech Wabag has reported a 11 per cent growth in net profit over the corresponding quarter previously. Its net profit was Rs 39.1 crore (Rs 35.3 crore) on revenue of Rs 356.3 crore (Rs 340.8 crore).

For 2010-11 it reported a net profit of Rs 55.3 crore (Rs 41 crore) on an income of Rs 733.5 crore (Rs 705.5 crore).

 

VA Tech Wabag's March '11 quarter profit came on the back of exceptional one-time expenses and weakness in Euro, it wasn't much of a surprise. Although trading below its IPO price, the scrip did not witness any sudden jolt following the announcement.

The company which has operations in 19 countries has bagged over Rs 1,802 crore firm orders taking its order backlog to Rs 3,402 crore.With a strong order book and a war chest for possible acquisitions, the company is well placed to capitalise on growth prospects.

Price Movements & Returns:

VA Tech had a dream debut on the bourses, listing at 1655 and touching a high of 1806 on it’s listing day(13-Oct-10) against the issue price of 1310. The company’s issued shares in a price range of 1230-1310 in it’s IPO which lasted from 22-Sep-10 to 27-Sep-10 IPO. The company’s IPO which received a ICRA grading 4 got an enthusiastic response from investors and closed with a subscription of 35.11 times.

Since then, things have not been so rosy for VA Tech, currently quotes tad below the issue price at 1287.30 (close price of 09-Jun-11).The share price slipped below the lower band of the issue price in March and made a 52 week low at 1131 on BSE and 1000 on NSE respectively.

The company has been a low volume stock. The sub-division initiative by the BOD is being looked as an effort to enthuse some kind of investor interest at low market prices (post sub-division) of shares. Although, any such efforts usually don’t fructify, it may just lead to some short term investor interest.

If we compare it’s performance for a period starting from 13-Oct-10 (listing day) till 07-06-2011, it has posted -29.16% returns. Analysing the performance of BSE-IPO and BSE-MIDCAP (where it acts as a constituent) in the same period, they have posted returns of -22.84% and -24.08% respectively.

Let's focus on the positives, yet again. Firstly, it is an internationally acclaimed player operating in a niche segment of water-treatment technology which has huge demand in the foreseeable future. Secondly, the company has strong cash reserves, which can prove handy for any inorganic growth opportunities. Thirdly, it’s available at a discount from it’s IPO issue price and way below it’s all-time high.

  

References:

1) http://www.finalaya.com/
2) http://www.bseindia.com/
3) http://www.thehindubusinessline.com/
4) http://www.wabag.com/
5) http://economictimes.indiatimes.com/

VST Industries : Consistent Dividend Payer

History: The Vazir Sultan Tobacco Company Limited was incorporated on 10th November,1930 under the Hyderabad Companies Act No. IV of 1320 Fasli and now governed under the Companies Act, 1956. The name of the Company was subsequently changed to VST Industries Limited on 30th April, 1983.

Business: VST Industries is engaged production of cigarettes and tobacco. It ranks third in the Indian tobacco industry and competes with the likes of ITC and Godfrey Phillips. The Company's cigarette brands include "Charminar Specials, "Shah-I-Deccan", "Charms Virginia Filter Kings," "Vazir", "Qila" and "Ambassador." VST Industries sells its products in India and abroad.

Shareholding Pattern: As on 31 March 2011, the promoters hold 32.16% of VST while public shareholding (excluding Institutional investments) was 55.37%.Out of 55.37%, bodies corporate hold 38.27% of VST.

Institutions hold 12.47% of VST. Mutual Funds/UTI, FI/Banks, Insurance Companies and FII hold 5.62%, 0.10%, 6.17% and 0.57% respectively in this category.

VST has a fantastic track record of consistent high dividend. Not only the dividend is consistent but the dividend payout (%) is also increasing year after year. Very few companies have replicated it’s superior long-term track record.

The company has unfailingly paid handsome dividends but these tempting dividends do not outweigh business concerns, if any. Just because a company pays hefty dividends it does not guarantee it will continue to do so.One should analyze whether the growth of dividends is in accordance with the company's financial growth.

Analyzing VST:    

  

On a Y-o-Y comparison,the sales have surged 23% from 4750.10 million to 5845.70 million.The net profit has also jumped 53% on a yearly basis.The company quotes at a EPS of 61.53 as on FY end 10-11 vis-a-vis 40.18 as on FY end 09-10.

Furthermore,  on exploring the performance from FY06 to FY10,company has consistently posted decent numbers on an annualized basis.

Since FY06, the net sales have grown ~11% CAGR till 2010 on back of increasing volumes while net profits have grown by ~10% during the same period.

VST has maintained a ROE greater than 23% since last 5 years though the margins have played a dampener primarily due to excise hikes and cost of tobacco leaves (key raw material). But it didn’t pass along the price hikes on the customer for maintaining the market share.

If we take into account the YTD returns till 27 May,2011, the company has outperformed it's industy peers by a huge gap.VST has posted 43.33% return in comparion to ITC's8.62%, Godfrey Phillip's -7.61% and Golden Tobbaco's -20.76% in the similar time frame.The company has posted mammoth returns in a short span,considering the performance of key benchmarks for the same tenure.

 

Recapitulating the positives, the stock has been a consistent performer if we go by the company financials. It enjoys a brand-loyalty and the promoters also have vast experience and expertise in this industry.

References:  
1) http://www.finalaya.com
2) http://www.bseindia.com
3) www.vsthyd.com
4) http://economictimes.indiatimes.com/