Abhishek Industries

The Trident Group came as a shocker for the PGPM 2000-2002 batch of MDI, Gurgaon. The year was perhaps the worst, in salaries given to B-school students. Companies, on the other hand, were having a wonderful time picking students at dirt cheap packages. (I started at a take home of 19k p.m. which incidently, was higher than batch median ... whatever the tabloid might have said). Trident entered the campus as a Day 3 company and offered a package of 38,000 rupees p.m. .... a package that even batch toppers were deprived of.

The financials of Abhishek Industries :
1. The sales and profits have grown at 25% over LY and the Q-on-Q numbers have been impressive
2. I expect a closing of 51 crs for this yr ... an EPS of 2.62 rupees/share and a P/E of 11.35 which is much lower than competitors like Welspun India whose PE is at around 22.
3. A little high on debt, but has a good BV/share of 14.6 rupees
4. Two small hiccups .. Abhishek has not given a single dividend in the last five years and, has a negative NCAV (am not giving too high a priority to this however)

Abhishek Industries is a fantastic candidate for "buy and hold". The downside in the stock is minimal and has an excellent management team. The annual report (pdf, 6.20 MB) of the organisation calls for an excellent reading (dont miss the managements' discussions and analysis part .. pgs 46-57).

I would throw a buy on Abhishek Industries .. to be held for long.