This company has got nothing do with cycles or Atlas Cycles. Somehow it is always mistaken for the Hercules brand of cycle. The company is a specialist in manufacture of material handling equipments under INDEF brand. 69.53% stake in the company is held by the Rahul Bajaj group with Bajaj Holding having a 19.53% stake. Given its veritable parentage, the company’s clientele includes the crème de la crème - M&M, Tata Motors, Maruti Udyog, Bajaj Auto, Ford India, Escorts, SAIL, Jindal Ltd., Bokaro Steel, Tata Steel, L&T, Ambuja Cements, ACC and more. It also has four windmills of 1.25 MW each.

The stock had yesterday hit a new 52-week high at Rs.147.15, in fact it has been hitting new highs consistently for the past few days. This might have been a build up for the Q4 numbers but they came in pretty disappointing. It posted a net profit of Rs.2 crore v/s Rs.4 crore in previous Q4 and Rs.5 crore in Q3. This drop in profits began right at the top – net sales dropped 10% (YoY) at Rs.27 crore. Things got aggravated further with operating costs soaring – they came in at 96% of the net sales for Q4Fy14 v/s 90% in previous Q4. The company ended the fiscal also on a lower note, with net profit at Rs.20 crore v/s Rs.28 crore in FY13.

The company is debt free and equity is tiny at Rs.3.20 crore. Reserves as at 31^st March 2014 stands at Rs.157 crore. EPS stands at Rs.6 (FV at Re.1), discounting the current price by over 23 times.