Stocks of the week

Asahi Songwon Colors :- (532853 & NSE as "ASAHISONG") (139)

Asahi Songwon Colors Ltd. is in the business of manufacturing pigments. Pigments are basically colourants, adding colour to everything around us, namely ink, paints, plastics, textiles, rubber etc. ASCL was promoted by Mrs. Paru M. Jaykrishna, having rich business experience in the field of manufacturing Pigments & Chemicals and Travel Industry. For Q1FY16, sales have decrease 40% to Rs.58.02crore (because of demerger of the pigment green division of Asahi Songwon to AksharChem (India) Ltd. The swap ratio was five equity shares of AksharChem (India) of ?10 each fully paid-up for every 26 equity shares of Asahi SongwonColors). Despite of lower topline & rise in income tax, PAT has jumped by 19.43% to Rs.5.04crore. Q1FY16 EPS stood at Rs.4.11. The scrip is trading at P/E multiple of just 9.3. Company is regularly paying dividend to its shareholders. It has paid 35% dividend for FY14 & declares 35% dividend for FY15. Stock is still available with dividend right. Stock is looking explosive for investment. Investors can buy this stock with a stop loss of Rs.125. On the upper side, it will zoom to Rs.165--170 levels in the medium term while stock may zoom up to its all-time high rate of Rs.192 in the next 8--10 months. Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be. Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.