Scripscan:Kohinoor Techno Engineers Ltd
cmp:2
Code:519485
Investing-reflections:Kohinoor Techno Engineers is in the business of software development for diamond machinery.The company is over 25 years old with an 80% market share for laser machines and has a worldwide customer base. Management intends to move into the business of producing diamond machinery directly. They also engage in short-term diamond trading/manufacturing/processing as and when market conditions appear lucrative.The company’s net worth, however, has gone nowhere in the last decade and has been reporting negative reserves for the last decade. Performance over the last five years has been marginal at best and net profits over the last year were just under 7 lacs on revenues of about 3cr.The business is dependent on the capital investment cycle, which is adversely impacted in a high interest rate environment. The industry appears to be a highly competitive where the company has limited competitive advantage as evidenced by their low profit margins.The company reported 1.7cr of accumulated losses indicating the lack of economic viability in its current business.Management have indicated that they are looking to enter new markets and produce new products including textile products because of ‘changing government rules and world market scenario’.This seems to be prime indication that the future course of the business is unpredictable at the moment and more importantly, untested. Equity shareholders would be taking a bet on the capability of management in their new ventures.
Monday, May 21, 2012
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
