Business Details
Permanent Magnets is part of Taparia Group of Companies. It had technical collaboration of Centro Magneti Permanenti and later on with Dowa mining and Sumitomo.
The products of the Company include
- Shunts
- Nano Amorphous Product
- Magnetic Assemblies
- Sensor Modules
- Zamak
- Hi-Perm
It is also leading manufacturer of Alnico Cast Magnets and Yoke Assemblies. The products of this Company are extensively used in different sectors like electronics, power meters, automobile industries, telecommunication, defense, space research, aeronautics, rail transport and power generation.
The Company has some good companies in its client list.The Magnetic Assemblies department had clients like Amul, Berger Paints, 3M India, Hitachi, Mahindra and Pidilite.
Stock Performance
Above is long term price performance of the Company. The Company had not performed from year 2002 to year 2014. It was trading flat most of the time with some ups and downs in between.
Major price action came in year 2017 where it zoomed close to 200 INR price giving investors more than 20 times return in short interval of time. It is trading near 50 INR mark. So in long term it has given more than 6 times return.
My Opinion
Permanent Magnets with recent jump in prices have given good returns to investors. It creates wide range of Magnets which are used in different industries like Metering and Electronics. It is also used in Automobile industry.
These are growing areas and usage of Magnets will be there. Electronics vehicles is new thing in town and Companies manufacturing magnets will get benefited by it.
This is interesting Company to track because of niche sector it operates in. With local manufacturing of magnets it will provide the products at good rate compared to imported ones. There are not many listed local players who are creating these products.
But we have many unorganized non listed players in this space. So with time if Company expands it foot print it will be worth considering.