Rasandik Engineering Industries Ltd Stock Research

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Rasandik Engineering Industries Ltd Detail

Rasandik Engineering Industries Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Engineering sector.

As per the Company website it supplies Tailored Welding Blanks, Engineering Solutions, Press Tools and Dies, BIW Welding Jigs & Fixtures, Fuel Tanks, Exhaust Systems, Motorcycle Frames, Sheet Metal Body Stamping, Sub-Assemblies, Suspension Parts and Skin Panels to many of India’s leading OEMs.

Below are major products of the Company

  • Tailored welding Blanks
  • Engineering solutions
  • Tools and Dies
  • BIW parts
  • Suspension parts
  • Fuel tanks
  • Exhaust Line and CNC bending
  • Scissor Jack
  • White Goods

The company has 5 manufacturing units. It has two plants in Sohna Haryana and one each in Surajpur in Uttar Pradesh, RanjanGaon Maharastra and Mewar Haryana. The products from this Company is consumed by leading OEM. The client base includes marquee names like Maruti, Tata, Honda, M&M, Fiat India and General Motors. The customers can be divided into two major categories based on products they buy from Rasandik.

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The two categories are Auto Components and Press Tools and Dies. Note Rasandik also has one more Company called Rasandik Auto which manufactures three wheeler Auto and Toto. So the auto components are also consumed internally as well. The internal consumption helps decrease dependency on external suppliers and boosts Auto division of the Company.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Rasandik Engineering Industries Ltd Stock Performance

The long term price chart can be divided into two parts. One from year 2002 to 2009 and second one from year 2009 to 2018. The first part saw exception growth as Company zoomed close to 300 from 15 odd levels in less than 6 year period. During this time investors made huge money. But the Global crisis hurt it bad.

Till year 2014 Stock did not perform and was hovering near 15 odd levels. It was only after 2014 it started picking up and now trading at above 110. If you see the starting and end price then Company has given more than 8 times return over last 16 years. But steep decline in entire journey makes difficult for investors to hold on the stock

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Rasandik Engineering Industries Ltd My Opinion

Rasandik Engineering Industries limited is Engineering sector Company. It can be viewed as Auto Ancillary company as majority of Clients cater Auto Industry.

Auto Ancillary Sector has given positive returns in last one decade. last decade was good for Auto sector that in turn helped Auto Ancillary companies. The market is saturated to some extend looking at slow growth in sales figures over last couple of years.

But after slowness for couple of years or so the demand will increase slowly. There will be new vehicle owners from medium income group and high income group will renew their vehicles. So sector will have slow but sure growth going forward. This will help the Auto Ancillary industry as well.

There are many stocks listed in Auto Ancillary sector. Some of them have given stellar returns over the years. Some of them are from famous Group of industries like TVS Group. I prefer investing in Companies with proven management. I have invested in Auto Ancillary sector due to reasons mentioned above and does not want to increase my exposure in the sector.

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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.

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