Story:Incorporated in Bangalore in 1976, YIL manufactures hydraulic equipment in technical collaboration with Yuken Kogyo, Japan, which holds a 40% stake in the company. YIL’s captive foundry unit at Bangalore provides over 90% of its castings requirement. The parent Yuken Kogyo established in 1956 is one of the leading manufacturers of industrial hydraulics in the world. It has 3 manufacturing plants in Fujisawa, Fukuroda and Sagami, in Japan.During Q4FY12, net profit on standalone basis rose by 47.6% to Rs3.8 crore (Rs2.6 crore) on 19.6% higher sales of Rs53.5 crore (Rs44.7 crore). OP and NP margin stood at 14.2% and 7.1% as against 12.0% and 5.7% respectively in Q4FY11. (YoY) During FY12, net profit on consolidated basis fell by 0.9% to Rs10.7 crore (Rs10.8 crore) on 12.9% higher sales of Rs179.0 crore (Rs158.5 crore). OP and NP margin stood at 13.4% and 6.0% as against 13.5% and 6.8% respectively in Q4FY11. (YoY) FY12 EPS works out to Rs35.7 Vs Rs36.0 in FY11.The focus on high technology pumps and turnkey pumping solutions coupled with increased capacity will stand to gain by way of strong revenue growth and profitability going forward.Manufacturing of energy efficient pumps with lower life cycle cost and innovative pumping solutions and services will largely drive the growth in future.At the CMP of Rs170, the share is trading at a P/E of 4 on FY13E and 3.2 on FY14 earnings.Buy for a period of 3-5 year perspective to get a CAGR of 20%.