Remsons Industries Ltd Stock Research

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Remsons Industries Ltd Detail

Remsons Industries Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Auto Ancillary  sector.

As per the Company website it is in business of Auto Control Cables & Gear Shifters with Push Pull Cables. It supplies to two wheeler, three wheeler and four wheeler Companies.

The product segment of Company can be divided into below parts

  • Cables
  • Flexible Shafts
  • Gear Shift System
  • Push Pull Cables

It exports the products to countries like Bangladesh, Sri Lanka, Russia, Kenya and other European countries including France and UK. It also has presence (Office in UK). The head office of the Company is located in Mumbai.

All the products manufactured by the Company are exclusively meant for Auto Industry. So it is categorized as Auto parts company mainly dealing with Gear Shafts.

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.

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Remsons Industries Ltd Stock Performance

The investors in this stock are not in loss if you see the long term price performance. But it has not given decent returns as well. As of now it has given barely 2 times return in past 16 years which can not be said excellent by any standard.

From year 2002 to 2015 that is long 13 year period Company has not made any positive price movement. It traded below 50 mark all these years. Only recently it moved past 100 and inched closer to 150 mark. the dividend yield at current market price is good (close to 1.5%).

Remsons Industries Ltd My Opinion

Remsons Industries Ltd is in Auto Parts sector. As mentioned in other posts this is growth sector. Companies in this sector have performed well over the last one decade. Most of the Companies in this sector have given positive returns.

The reason was simple. Auto sector have grown at good pace in last one decade. There was growth in two wheeler, four wheeler and three wheeler segments. Both personal and commercial auto space grew fast. This propelled growth in Auto parts Company.

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Many Auto companies and Auto parts companies made good profit and gave excellent returns to investors during this time frame. Having said that Remsons have not performed well compared to other companies in this space. Also there are many MNC operating in Gear and Auto parts sector making it difficult for smaller players.

I have already invested in this sector and will not increase my exposure in this sector. You should explore other companies in this sector. Auto Parts have too many companies listed so you will not have issues finding one decent Company. In fact some companies are from prestigious TVS Group of Companies. I will not be investing or tracking this 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.

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