Scripscan:Kinetic Motor Company Ltd
Code:505190
cmp:30
Story:THE scooter-maker Kinetic Motor Company has been losing speed and is presently in a very bad shape with losses to the tune of over 100crs on its books.A subsidiary of Kinetic Engineering, Kinetic Motor Company is better known as the manufacturer of the Kinetic brand of automatic scooters.Formerly Kinetic Honda, Kinetic Motor Company had a tie-up with the Japanese major, Honda.This was discontinued a decade ago.Consequently, the company's products no longer sport the `Honda' tag. After severing ties, Honda Motor Company of Japan has set up production base in India.With motorcycles racing ahead of scooters in popularity, it is not all that surprising that Kinetic Motor Company will be in ill health.Its product portfolio is stacked with scooters.The growing competition in the scooter market and the high popularity of motorcycles would continue to have a major influence on the business prospects of Kinetic Motor.Given this backdrop, Kinetic Motor's financial performance is unlikely to see any appreciable jump in the near term. From an investment perspective, shareholders should exit full exposures in the company.Sell and move on to better bets folks,sunsetting business would be of no help ever,never.
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