ScripScan:Rishi Laser Ltd
BSE:526861
Cmp:35
Story:Rishi laser is a leader in the usage of Laser Cutting for manufacturing components and assemblies.Rishi laser ltd(RLL) set up its first Laser Cutting facility in 1995. Even though Laser Cutting was very popular in Western Countries at that time, Laser Cutting of metals was very new to India.The progress in the first five years was very slow because Laser Cutting was still looked as a very expensive method of processing steel. Also the Indian Engineering Capital Goods Industry was passing through a very difficult period in later nineties.arunthestocksguru.com feels the scenario has completely changed today for the sector and the company. The Engineering and Capital Goods sector is booming in India and Laser Cutting is fast becoming a very standard method of processing flat steel.The fabrication industry is highly fragmented and there are very few organised large Companies in the business.Rishi Laser continues to be the leader in the business in terms of capacity with several CNC steel processing machines.Due to increasing cost pressures,the European Companies are increasingly being forced to outsource components and assemblies. RLL is well placed to supply light and medium fabrications because of its modern facilities, good Engineering base and experience of similar supplies in domestic industry.arunthestocksguru.com beleives,In the current global economic scenario the trend towards outsourcing will increase. Also it would be important to note that,India has a tremendous cost advantage where the items have a high Engineering content.RLLs products are not mass produced items and require Engineering inputs at all stages.Thus Outsourcing can become a huge growth provider for the company in future.Taking 2012-12 into equation valuation looks attractive at the moment and considering its leadership in the sector,the export potential,outsourcing oppurtunities and booming exconomy, Rishi can certainly be a value creator in the coming years.
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