Rexnord Electronics and Controls Ltd Stock Research

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Rexnord Electronics and Controls Ltd Detail

Rexnord Electronics and Controls Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Electrical Equipment sector.

As per the Company website it manufactures BLDC Motor and Energy Saving Fan & Motor. It was established in year 1984 with foreign technical collaboration of Micron Engineering Company Korea.

Below are present products manufactured by the Company

  • AC / DC Fans
  • Energy saving fans and motors
  • Shaded pole motors
  • BLDC Motors

The Company has also outlined products it will be working on in future. Below is list of future pipeline. These will drive growth for Company in near future.

  • BLDC Compressor
  • Air Condition Motors (BLDC)
  • Display Cabinet

As on 2017, company is manufacturing 2.5 millions fans and motors and by 2020 company will be manufacturing 5 millions fans and motors (planned). The factory is located in Thane Maharashtra and Head office is in Mumbai.

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It also has international presence. It has two offices one in China and other one in Singapore. The company exports 20% of the products and 80% is consumed locally. The 20% export helped it earn 1 star export house certificate.

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.

Rexnord Electronics and Controls Ltd Stock Performance

Over a period of 16 years stock has given close to 30 times return. It was trading near 1 INR mark in year 2002. Now it is trading close to 30 mark. Note this 30 mark is 52 week low for the Company. The highest price point being 70 which turns into 70 times return. 70 times return is pretty good.

Company had slow paced growth and every year was more or less positive for it. It shows that financial results were improving with time and in recent bull run it cashed in.

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Rexnord Electronics and Controls Ltd My Opinion

Rexnord Electronics and Controls Ltd is in Electrical Equipment sector. There are not lot of Companies which manufactures Electrical Equipment in India. It is one of those companies.

Company has been improving over the years expanding the product mix and capacity with time. Over the years it successfully manufactured new products and also increased capacity driving profit and in turn benefiting the investors.

The export and internal market mix of 20 and 80 is good.It is getting foreign exchange and money depreciation benefit. Also it is not entirely dependent on foreign market for growth. This sales share is good for Companies and it should focus both on Internal and International market.

The demand for products like Fans, AC and Electric Equipment which consumers products created by this Company will be increasing with time. India is yet to saturate on AC market. There will be increasing demand due to population growth, expanding middle income group and temperature in Summer time.

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I will be tracking this stock to make sure I am informed about any potential news around the products it manufactures.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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