Business Details
Fluidomat Limited is in Manufacturing sector (Heavy Engineering division). It manufactures Fluid Couplings with technology using its own technology from year 1971. Though the technology has been upgraded with time.
The products from Company can be divided into four categories
- Constant Fill / Fixed Speed Coupling
- Variable speed scoop coupling
- FNCT Fill control coupling
- HLN for Combustion engine drive
Fluid Couplings are used in wide range of industries. They are used in the automotive, railroad, aerospace, marine and mining industries. It is used as an alternative to mechanical clutches.
So it can be termed as Machine Components Company as well. The manufacturing plant of company is located in Dewas in Madhya Pradesh. It also has presence in United Kingdom (London).
It has Pan India presence with sales office located in Chennai, Kolkata and Mumbai.
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Stock Performance
The Company has performed decently on stock exchanges. On absolute term it has given twenty times return in last two decades. The dividend yield at current price is also excellent (more than 5%).
The Company has huge jump in year 2014 and since then it is correcting every year and from the levels to 300 it has corrected to 60 odd levels. Investors should wait before the prices settle it.
My Opinion
Fluid Coupling is very niche space. There are not many companies listed in this space in India. The top Companies which are present in this niche in world space are ABB, Siemens and Voith. All these Companies are present in India as well.
So it is competing with Global players in India and for exports as well it need to compete with these players. The good point is Company has its own process of manufacturing Fluid Couplings. Also there are maintenance contracts as well for these products.
So there will be sales and after sales maintenance service. These have long time span. The Company is unique and in niche space. I will be tracking this Company due to niche space it is operating it.