Story:Initially engaged in providing solutions for fire fighting services, BMS and other allied activities, MASL subsequently diversified into the business of telecom industry i.e. installation of mobile towers. However, of late, telecom related activities have been pruned down. As regards financial performance, MASL has registered an impressive growth in last four years. From just Rs 3.88 crore in 2007, the company's revenue has progressively increased to over Rs 33 crore in 2011. Net profit has leapt from Rs 13 lakh to Rs 171 lakh during this period.Nevertheless, post-bonus issue, the eight year-old company's reserves amount to less than Rs 2 crore.Even though MASL has achieved an impressive growth on the revenue front in recent years, its operating margin (10%) is nothing to boast about. For the last audited full year, the company's bottom line amounted to Rs 1.73 crore which yields an EPS of about Rs 2 on the equity of Rs 9.2 crore.If the company's short term fund requirements (Rs 6.5 crore) to retire its loans are any indication, investors may have to wait for a long to get a decent return from the present levels. In fact, what one should worry about is the company's unwarranted diversification into stone crushing activity.MASL's group company Delta Infra Ltd is said to have recently entered into stone crushing in the state of Jharkhand. For Delta, which is into infra-construction activity, crushing could be a natural diversification. MASL's proposal to set up a crusher in Jharkhand thus raises serious doubts about the promoters' intention.While there is no comparable peer in the market to gauge the valuations, MASL's present price of 56 looks highly unreasonable considering the unrelated diversifications and conflict of business interests within the group companies.