Samtel India Ltd Stock Research

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Samtel India Ltd Detail

Samtel India Ltd is in portfolio of Ricky Kirpalani and Haresh Keswani . He is one of the top investors in India. The company belongs to Packaging sector.

As per the Company website it is India’s leading integrated manufacturer of a wide range of high technology products, systems and equipment across a cross-section of industries.

It is largest manufacturer of Television picture tube in World.It had 70% market share in India. Since picture tube market is going down Company has shifted focus on new operational area. The Company has JV with HAL and Thales for manufacture of products used in modern Avionics system. It deals with below products in defense system or Avionics system.

This is transitional phase for the Company. Below are list of operational areas of the Company. It is planning to use the expertise in Pictures tube in future proof sectors.

  • Displays
  • Electronics warfare system
  • Airborne computers
  • Vehicle Electronics
  • Armored vehicle upgrades
  • Opto electronics
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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.

Samtel India Ltd Stock Performance

The above long term price performance chart presents a sorry state of the Company and investors. The company has been on constant decline since year 2006. It is evident as Television picture tubes business is over due to shift in markets.

The Company is struggling and it is clearly shown on Stock prices. Note whatever pundits say Stock price (long term is best indication of a Company performance and issues it faced). Prices can only be manipulated or driven based on news or prediction for some period of time. Results should back the prices else it will fell apart with time.

Samtel India Ltd My Opinion

Samtel India Ltd is a Electronics Company.It is classic example on how a dominant Company can destroy investor money with shift in market or technology. A Company with 70% market share in India and World largest manufacturer is not performing on stock exchanges.

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This is why people should always cross check Companies in their portfolio. They should evaluate companies and see why they are not performing for some time. They should come out from the Company if something is not right about management or market dynamics.

The Company is going through transition. It is trying to use the past knowledge to venture into new fields. The tie up with HAL will be beneficial for the Company. With focus on defense sector and higher allocation of funds in budget will help the defense sector companies.

You can keep this Company on radar to get more idea about execution and order it gets. The turn around stories if played well can fetch good returns to investors. There have been failure as well success turn around stories in past. So you need to keep an eye on the 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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