This Gujarat based small cap company has two divisions – engineering, which has vacuum and evaporator and second is food. In engineering, it makes various engineering equipments and it has a financial, marketing and technical collaboration with US based Croll-Reynolds, which also holds 6.8% stake. Its food division makes instant powder drink,,fruits jams, squash, custad powder,baking powder ,food colour ..etc under the brand name ‘BCOOL’. This unit contributes around 10% to total revenue.

The company had a lackluster set of numbers for Q3FY16. Net sales remained status quo at Rs.37 crore v/s Rs. 36 crore (YoY). EBITDA was at Rs.7 crore v/s Rs.8 crore and margins dropped from 22.11% to 18.74%. Net profit was at Rs.4 crore v/s Rs.3.5 crore.

The stock does not have too much fancy mainly because of the promoters holding which at just 40.03% is not too enthusing. The company has a small equity at Rs.4.26 crore and reserves of Rs.86 crore. The good news here – its net profit for 9MFY16 at Rs.9 crore holds the promise of surpassing previous full year’s net profit of Rs.11 crore.