Business Overview
Bemco Hydraulics is one of the leading manufacturer’s of Hydraulic presses and Railway products. The manufacturing site of the Company is located in Belgaum in Karnataka state.
The products of the Company are in Hydraulic Presses category are
- C Frame / Throat type presses
- Straightening Press
- Sheet metal forming
- Moulding presses
- Baling presses
- SPMs
- Hydraulic wheel fitting presses
The product of the Company in Railway product segment are
- Rerailing system
- Powering and Controling
- Uprighting and Puling
- Lifting and Traversing
- Rescue Tools
The Hydraulic presses products are used in industries involved in metal working ,plastics ,wood, rubber , electronics and electricals. The railway products are specially designed for Railways and it is the major client of the Company for these products.
Stock Performance
Above is long term price performance chart of the Stock. The Stock has given nine times return in above chart. It has moved slowly with correction over the years. In recent couple of years it has corrected from 200 odd levels to 100 odd levels.
It has not given consistent dividend over the years. This is negative for the Investors of the Stock. After correction the Stock is trading at decent levels. This is good levels to track the stock and enter if one feels so.
My Opinion
Bemco Hydraulics caters two different segments. Railways is one of the major consumer of the Company. The products of this segment have fix client and it can explore overseas as well for client base.
Hydraulic press is other major product category of the Company. The Company lists some marquee name in its Client list. This product category has wide range of application and is used in variety of industries.
Company has shown slow but persistent growth in business over past decade. This shows steady careful management nature of the Company. But lack of dividend is one big negative for it. I would like to see more dividend flow from it.
Personally I like companies giving regular decent dividend to share holders. As of now I would track this Company as Railways network cover will increase with time and other product category has good market base. This is business to business company and should show consistent growth in time to come.