Equity Watch

ASHISH POLYPLAST could turn out to be a multibagger

Gujarat based 12 years old Ashish Polyplast’s share , is a penny stock available at less than Rs. 3 (CMP Rs. 2.8) per share of FV 10. Its Equity Capital is Rs. 3.4 crores and BV Rs. 11.Company has capacity of 450 tonnes of PVC Hoses /pipes and caters to the need of agriculture ,construction and infrastructure. Its Hoses / pipes (see website) with diameter of 5 mm to 50 mm and thickness of 2.5mm to 6 mm are sold under the popular brand name of REALON .Company is doubling its capacity and adding new products like sprinklers and drip irrigation systems which may take it to the league of Jain Irrigation Systems in the next few years.

Ashish Polyplast is an almost debt free Company, and with market capatilisation of just Rs. 1 crore ,share appears to be highly undervalued. Replacement cost of a plant of this size (900 tonnes after expansion of PVC Nylon braided Hoses and Flexible PVC Hoses) would atleast be RS. 10 crores.

Buy with a long term hold of 2-3 years is recommended.

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