Story:Solitaire Machine Tools Limited is a leading manufacturer of Precision Centerless Grinders, incorporated in the year 1987. Solitaire has been working as an exclusive Licensee of CINCINNATI MILACRON, USA to manufacture Precision Centerless Grinders in two primary sizes with wheel widths of 200 mm (8″) and 250 mm (10″).It also offers centerless grinders with wheel widths of 100 mm (4″) and 500 mm (20″).SMTL operates from its registered office in Mumbai. It has two manufacturing units in Vadodara, Gujarat (India). Over the years, Solitaire has developed a niche market for itself for catering to the demand of Centerless Grinders.The long-term outlook for the industry is optimistic based upon the product innovation and cutting age technology for sustaining growth. The export market especially to U.S.A. will sustain and an additional avenue is opened for exports to Europe. The domestic demand is also growing in the current year. The growth in this sector is expected to continue for another 5 years.The company has been able to make break through in exports by receiving orders from Australia and Turkey besides regular orders from USA. Negotiations are also being made now to manufacture machines for Bocca & Malandrone Sunebo S.p.A for European market.This year company has now developed 5 Axis CNC Centerless Grinder and a line of3 Grinders was supplied to Rane Engine Valve, Trichy.In the present fiscal,similar lines of high quality grinders are being manufactured to meet its customer's demand.The company had also exhibited several grinders at IMTEX 201l.The response was positive and new inquiries were generated and several orders have been received.The company has been able to maintain the raw material and manufacturing cost at low percentage of sales inspite of increase in raw material prices and all other expenses. The inventory management and cos rationalization has helped it to reduce the cost of manufacturing.In 11-12,The total sales has grown by 45% to Rs.l400 lakhs from previous year of Rs.954 lakhs. The Net Profit has grown by over 75% from Rs.77 lacs to Rs.134 lacs.The prospects for current financial year are also bright with good order booking at its posession. The company has recently declared a dividend of 15%.From a dividend perspective(its still cum d as record date is on 24th of may)its a decent buy but real moolah would be raked in by the stakeholders only if its able to maintain the impressive numbers which it has posted this fiscal.Altogether a small cap to watch out for.