Monday, February 16, 2015
Axtel Industries : Buy at CMP of Rs 12 long term target 35
Axtel is a specialist in engineering process equipment for the food industry having technical collaborations with Wenger Inc., USA for food/feed extrusion systems and AnuTec GmbH, Switzerland for powder handling systems.
Company has strong client base of lcal Indian customers like AMUL,Bikaji,ITC and MNC like Nestle,Mondeleze,Heinz,Unilever,Tetrapack etc.
Axel has turned profitable in recent quarter and going forward could improve performance with revival in economy .It has good experienced management and excellent manufacturing facility in Gujarat.It has last year gone for expansion with investment of 22 crores in manufacturing which reflects management's confidence in the business potential in the recession time.
Promoters hold 68% of equity
Technically stock has bounced from Rs10 level and going forward can break out once crosses 15.
It is low risk high gain type of stock which could deliver multiple returns in next 2 years
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Dear Mukesh,
ReplyDeletePlease find out current status of company performance. I am in interested to invest in this company on your advice.
Regards
Rajendra Dubey
Positive change in capex cycle should help the company but that needs to be observed.you may hold on to fresh new investment and wait for next quarter to asses the performance of company
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