Albright Wilson Chemicals India Limited

In a fairly expensive market, Albright Wilson comes close to a Ben Graham netter in terms of an cursory evaluation of assets. Although the company is extremely low on the earnings front (and I am not suggesting a Buy), thought it might be useful for discussion sake.

The company specs are enclosed (Dec-2006 data) :
Share capital - Rs 3.38 crs
Secured loans - Rs 4.04 crs
Net current assets - Rs. 48.27 crs
Face value - Rs. 10 per share
Book value - Rs. 179.77 per share
Current market price - Rs. 115.50 (Apr-07)

Re-drawing the ratios, I find that the NCAV is Rs. 130.28 per share, which is higher than the CMP of the stock. Interesting the cash inside the company was a healthy Rs. 21.69 crores (or Rs. 64.17 per share).

The bane of the company is it's inability to improve it's sales (FY2007, sales declined by 20%) and the profits of the company dived into the red.

The company's data has been quite a mystery. Interestingly, the company has declared a dividend of 10% in Apr, 2008. They also announced the sale of their phosphate unit in Sep, 2007 (here).

Questions -
1. Is this company better dead, rather than alive?
2. The equity base of the company is very small. Can an infusion of cash help improve operational efficiency and profits?