Big Shots: Porinju Veliyath’s latest rarely known bet.

Kerala investor and portfolio manager Porinju Veliyath has bought a new stock.

His latest pick got spotted in the March quarter ended Shareholding Pattern declared by the company called RACL Geartech Ltd.

Porinju Veliyath’s PMS firm EQUITY INTELLIGENCE as of end of the march quarter holds 100000 shares of RACL. The stock traded only on BSE (BSE CODE:520073)  at nearly 40 having a upper circuit filter of 5% in the T2T Segment.

ABOUT RACL Geartech Ltd from their website: Formerly known as Raunaq Automotive: Established in the year 1989, the name of RACL Geartech Limited has garnered tremendous respect in the field of manufacturing of automotive components that are used widely in Motorcycles & Scooters, 3 & 4 Wheeler Passenger & Cargo Vehicles, RACL has stretched out its production capacity to include innovatively designed assortment of sub-assemblies, Industrial Gears for Electrical Switch Gears & Circuit Breakers, Winches & Cranes.

The company has a team of 350 employees who work efficiently. It is this combination of technology and manpower that has fetched for RACL Geartech a credible standing. Headquarter of this company is located in New Delhi. Aside from this, one of the state-of-the-art manufacturing units of the company is located in Gajraula and the other division has been set up in Noida. The manufacturing unit in Gajraula is on the national highway NH-24, around 100 kms from New Delhi while the one in Noida is situated 15 kms from Delhi in state-of- the- art Industrial hub. Keeping track of the industrial trends, RACL Geartech Ltd manufactures products with innovative designs that appropriately serve the needs of automobile sector and are available in diverse dimensions. RACL is envisioned to achieve sales revenue of over US$ 25 million including export revenue of over US$ 10 million in immediate future as mark of its consistent growth & success. Products Transmission Gears & Shafts Reduction Gears Trains CVT Gear Boxes Engine Timing Gears Sub-Assemblies Industrial Gears Synchronizing Cones & Rings Precision Machined Parts

Clients:It has created a strong base all across the world and has a long list of satisfied clients in countries like Japan, Germany, Italy, Switzerland, Austria, Thailand, UAE & Sri Lanka. Its esteemed list of Tier I and Tier II customers includes:

Clients

 

FINANCIALS:                                                                                                                               For FY2016, RACL reported revenue of 117.74 crores, net profit of 3.70 crores and EPS of Rs 3.73. At current price of nearly 40 RACL is at a P/E of under 11.

Currently RACL is at a market cap of just about Rs 40 crores.

REMARKS: Price of the stock has remained in a range of 33 to 49 right from 1st Jan to 31st March so Porinju’s buying must have been between this range only I assume.

Let us see how the stock fares.

DISCLAIMER:  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

DISCLOSURE: It is safe to assume that i might have RACL Geartech Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

 

 

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