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Thursday, November 03, 2016

Rasandik Engineering: Deep Discounted stock.



Rasandik Engineering India Limited.
http://www.rasandik.com/home.htm
CMP:65.80
Market Cap: 31.09Cr
Equity:47.3 Lakh Shares. 4.73Cr (Face Value:10/-)
Sales (March 2016): 214.55Cr
Net Profit: 1.14Cr

Rasandik established in 1986 as manufacturers of Fuel Tanks & Sheet Metal Components has been pioneering new frontiers in Tailor Welded Blanks(TWB), Engineering Solutions, Tooling and Product Design. The use of high level of automation, robotics, softwares like Catia, Unigraphics, Hyperform and Rasandik’s passion for innovation and latest technology have triggered a chain reaction catapulting it to its ‘pioneering market leader’ status today. Company caters to the following Product Sectors:
- Sheet Metal components for Cars, Trucks, Tractors, Two Wheelers
- Three Wheelers,
- Die and Tools,
- TWB (Tailored Welding Blanks)

Rasandik Engineering Industries India Limited (Rasandik) is engaged in the manufacture of sheet metal components for automobiles. The company offers tailor welded blanks, body-in-white parts and subassemblies, tools and dies, suspension parts and sub-assemblies, fuel tanks, exhaust line and CNC bending products, and scissor jacks. It also provides white goods, such as air-conditioner body stampings and assemblies, refrigerator body stampings, and washing machine body stampings. In addition, the company offers engineering solutions in the areas of hyperform draw analysis, tractor body parts, point cloud data, surface model, and MUV wire frame.

TWB’s is a technology that is futuristic & helps OEM’s manufacture light weight and cost effective vehicles. We provide a single point responsibility from product design to product delivery. Rasandik is rapidly moving up the value addition chain and becoming an integrated component manufacturer.

Customer List:
Cars/SUV/MUV: Maruti, Honda, General Motors, Tata, Mahindra, Renault-Nissan, FIAT,Hindustan Motors.
Motor Cycle: TVS, Honda Motor Cycles
LCV,HCV: Swaraj Mazda,AMW, Force Motors, Ashok Leyland,
Tractors: NewHolland, Mahindra Swaraj, Renault Agriculture, CLAAS.
WhiteGoods: LG
Press Tools & Dies: Maruti Suzuki, Tata, General Motors, Gindustan Motors, Hero Motor Corp, Honda Motorcycles, TVS.

Rasandik Engineering was started by Shri. Rajeev Kapoor (IIT-Delhi 1977 batch) worked with F.L.Smidth & Company, Denmark and subsequently started Rasandik Engineering in 1986. .

Our Mission for 2015 - 16... to build capabilities for Aluminum & Titanium, metal working for Aerospace Sector, Stainless Steel and Special Steels heavy fabrication. Feasibility study to build capabilities for GI & SGI castings. To achieve this, my message to the Rasandik team is to continue providing quality as a way of life and inculcate an attitude of ‘Do it right the first time and every time’.

Our Vision 2020... to Build Capabilities for Design to manufacture of components and aggregates for to Build for Design to manufacture of components and aggregates for Automotive Sector, Aerospace Industry and to carry out Heavy Fabrication.




  
Rasandik Engineering had taken a 10 Million USD 3%  (45.79Cr) Foreign Currency Convertible Bonds  which matured in April 2009 company has paid 80% of the bonds and 2 million worth (9.158Cr) are unpaid Company has stated that its been provided for in their books. So it could be a case of identity of bond holder or other issue not in control of the company.

Rasandik is reporting losses and does have 117Cr worth of borrowings. and Capital expenditure is also consistently close to 35Cr every year which is quite high for a 225Cr sales company.Could be due to vision of entering into Aluminium/Titanium Welding space and entry into aerospace/defense engineering or the fact that technology is the differentiating factor in the auto component space to survive.

Conclusion: With forcasted lower interest rate regime(I expect the rates to be low going forward for a long time - new trend) companies which have debt in their books and who are well established should be able to take advantage of the lower rates. Already Automobile companies are reporting higher sales number. All said and done @ 30Cr market cap..low equity base.. I'm expecting the management to turnaround the company.Good value buy for the long term investor.




8 comments:

pranjali upadhyay said...

Bharat Forge completes acquisition of US based Walker Forge Tennesse.
Capitalstars

vicky said...

Sir can u pls check once gokul refoil?
Same story like jayant agro is reaping? ?

What'sUp Prahalad said...

Vicky ji,
Gokul Refoils is into castor oil extraction.. ie Solvent extraction process..
if they do start producing derivatives it is going to be the basic derivatives..
http://www.castoroil.in/derivatives/derivatives.html

Higher order derivatives have issues with Purity as well as its byproducts...

So you could be producing sebacic acid but its purity and quality as well as quality of residual products both are important factors...

Right now Gokul Overseas is the company which deals in castor oil and its level 1 derivatives that is being produced (low value add) and its a pvt company of the gokul group not gokul refoils..

So you need to confirm if the castor oil derivatives business is transferred in gokul refoils..

=happy investing
whatsup-indianstockideas

Anonymous said...

Sir..how is the story turning around, worth buy at current levels or better to accumulate at dips.

What'sUp Prahalad said...

Rasandik engineering is still attractively priced..
=happy investing
whatsup-indianstockideas.blogspot.com

RISHI said...

Thanks sirji

Anonymous said...

Sir how is the story turning to be, good time to buy more?

What'sUp Prahalad said...

Anonymous ji:

as they say.. "Picture tau Abhi Baaki Hai" for Rasandik Engineering

=happy investing
whatsup-indianstockideas.blogspot.com