1. This company was once grossly mismanaged. It was not generating cash because of several leakages. The management was just dumping the goods on distributors without much inventory planning or tight controls on the channels.

2. They changed the management a few years back. The new management cleared slow-moving inventory, launched new product lines, sorted out distribution and sales channels and tightened terms of credit.

3. From over Rs 40 crore losses in 2013, it became profitable in 2018. June quarter earnings were stunning. The company will probably report highest profit in the history of the company this year. It also launched new smart disruptive products.

4. Also, previously the company was impacted by rupee volatility it was importing 75% of the parts. The plan is to import a fraction of it and locally produce the rest. Because of this, it will probably become a cost leader among the group and can start exporting finished products to group companies.

5. The company’s topline has been growing in double digits, but the delta would come from margin improvement, which can produce multiplier impact on EPS. Deloitte remains the auditor, so little doubt on accounting front. The market cap of the company now stands at Rs 500 crore.

6. There are natural sectoral tailwinds in its niche again, because of the smart new generation products. The management is competent enough to take it to the top global league.

– Curated by Arun Mukherjee & Soumya Malini