Business Details
Rasandik Engineering is in Machine tools manufacturing sector. The Company creates products for Automotive Industry, Aerospace industry and heavy fabrication works
Below are the products from this Company
- Tailored welding blanks
- Design and development of Automotive body parts
- Manufacture of inner and skin body components of Automobiles
- Supply of parts and sub assemblies for body-in-white, class A surfaces and closure panels for Automobile industry
- Air-conditioner body stamping and assemblies, refrigerator body stamping and washing machine body stamping for LG Electronics(India) and Samsung (India).
- Scissor Jack
- Exhaust line and CNC bending
- Fuel tanks and Suspension parts
The Company has 5 plants located in
- 2 plants are located in Soha Gurgaon
- 1 plant in Surajpur Greater Noida
- 1 plant in Ranjangaon Pune
- 1 plant in Kanwarsika Mewat
It has some big names in its customer lists. Mainly Auto sector companies are major customer of it. Names like Maruti Suzuki, Force form customers of the Company. In white good sector LG and Samsung are the Customers
Stock Performance
Above is long term price performance chart of the Company. The stock has two towers and valley in between. The two towers coincide with the bull market top. Though the stock has given return to investors if invested at right levels.
Recent under performance is because of auto industry slow down and market also slowing down. However it can not be termed as long term investment stock.
My Opinion
Rasandik Engineering is majorly in business of creating body parts of vehicles for Automobile industry and body parts of Air conditioner. Air conditioner body parts is new business area for the Company which will open another major revenue stream.
Looking at the slowness in Auto sector this was decent decision. Also body part creation is not a MOAT business. It can be termed as commodity business and Company does not have major pricing power.
There are better alternatives available in Automobile parts or Auto Ancillary sector compared to this Company. I do not recommend investing in this Company.