Paushak

This is a Vadodara based company which makes agrochemicals. At a glance, you cannot help but wonder why this company, with a market cap of less than Rs.200 crore is commanding a price of Rs.600 on the BSE. Dig deeper and that unearths the reason – this company is promoted by Chirayu Amin – the promoter of Alembic. In fact Alembic holds 19.04% stake in Paushak of the total promoters stake of 66.91%.

Thus apart from being a “Alembic” company, it is a ripe bonus candidate. It is a very small cap company. Its performance for Q4FY17 also shows its size – its total income rose 10% (YoY) ay Rs.21 crore and net profit came in at Rs.5 crore, up 150%. It ended FY17 with a lower bottomline at Rs.11 crore v/s Rs.12 crore in FY16.

The fancy for the stock arises from the fact that it is debt free and equity is tiny at Rs.3.21 crore. Reserve stands at Rs.76 crore. Its EPS for FY17 was at Rs.34.40 (FV of Rs.10).