Priya Ltd. Detail
As per the Company website it exports, indents and distributes raw materials for chemicals, dyestuffs, pharmaceuticals and allied products. IT products portfolio includes hardware components and some software titles.
Three core business of the Company are
- Indenting agency for bulk and specialty chemicals
- Exports of dyestuffs and intermediates
- Distribution of information technology (IT) products both hardware & software
The IT business can be categorized into two parts
- Thin Clients
- Software products
I looked at the Software products. But I was not very sure application areas of those products. It has four products on offer as of now. I was not too convinced with those. Thin Client business does look promising. But hardware companies have not performed well.
Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Priya Ltd. Stock Performance
It is very slow moving stock. Over the 16 year period it has zoomed sharply lat ein year 2017 when it touched 100 and moved past it from below 50 levels. Except those couple of month the Company traded below 50 all the time.
The company is stable and slow mover. It has given close to 3 times return which is not acceptable.
Priya Ltd. My Opinion
Priya limited is a Conglomerate. It is part of Priya Group of Companies. Priya Group consists of two companies Priya Limited and Priya International Limited. It does have Pan India presence with head office in Mumbai. It has branches in other major cities of India like new Delhi, bangalore, Chennai, Kolkata and Pune.
I do not like small Conglomerate companies. They have two different operating areas and have difficulty focusing on one area.It operates in two entirely different niche. One is trading of Chemical stuff and other IT. Both are competitive segments and entirely different.
I will not track the Company due to reasons mentioned above. Small companies should focus on one core strength and build on top of that. This multiple ventures in Competitive space does not help any Company.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.