visaka industries share price: This smallcap stock in bear grip could reverse trend, over 40% upside seen

“Revenue of the BP division has been guided to grow 15-20 per cent in FY23 aided by the expansion of the Yarn division, 10-15 per cent, backed by good demand,” it said.

The BP division manufactures asbestos-cement (AC) products and fibre-cement flat products (V-boards and panels). It generally brings around 82 per cent to the company’s revenue.

“With major markets in FY21 locked down (Mumbai, Bhilwara), in FY22 the Yarn division reported its best performance. Backed by 37 per cent YoY volume growth, Q4 revenue/EBIT grew 52.4/110 per cent YoY,” it added.

With a market capitalisation of Rs 903 crore, the shares are trading below the short-term moving averages of 5,10, 20,50,100, 200-DMA.

The stock hit a 52-week low of Rs 490 last week. Shares of the small-cap company closed 1.75 per cent higher at Rs 518 on Monday, down over 40 per cent from the recent highs which essentially puts the stock in bear territory.

Anand Rathi noted that the Q4 revenue was its highest but profits were curbed by the inflationary context.

The brokerage house highlighted that the company has set up more than 250 ATUM Charge EV charging stations and launched the first ATUM Life store in Hyderabad in FY22. The ATUM is expected to reach full capacity in FY23.

“Already operating at high capacity, the ramping up of the recently commissioned capacities would give a fillip to growth. Its greater focus on sustainable products continues,” Anand Rathi said in its recent report.

Visaka Industries, incorporated in the year 1981, is a small-cap company operating in the Building Materials sector.

Promoters held 48.36 per cent stake in Visaka Industries as of 31-Mar-2022. Domestic institutional investors and foreign institutional investors held 0.04 per cent and 4.78 per cent stake.

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