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AMD Industries Stock Analysis

AMD Industries Detail

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AMD Industries is in portfolio of Subramanian P. He is one of the top investors in India. It operates in Packaging Sector.As per the Company website the products can be classified into multiple categories as listed below

Lets understand what Crown caps are. Almost all of us have drank Coco Cola or any other Cold Drinks. The Cap on the bottles is called Crown Caps. The Company produces three types of Crown Caps

The company has listed internationally famous companies like Coco Cola, Pepsico and Carlsberg as their client. As per the website it is the only company in India with a complete one stop shop solution for the entire carbonated soft drink market, beer industries.

The Company has two division mainly Plastic division and Crown division. Above discussion looks promising for the Company. It gives complete monopoly over the Crown parts of Beverages.

Now lets look at the performance of the Company on stock exchanges. As per founding principles of technical analysis stock prices reflect Company and Index performance over the years

Below image shows stock price performance of the Company since IPO days so to eliminate any seasonal price fluctuations.

AMD Industries Stock performance 2018
AMD Industries Stock performance 2018

The company made promising debut on Stock Exchanges. It was trading at 80 around mark. Like all companies which got listed in year 2007 or so it also faced problems during Global Crisis. The prices slumped past 20 mark.

This global crisis broke back of the Company stock prices. The company has never managed to surpass all time high made on listing. So for IPO investors AMD Industries is a wealth destructor

For last 10 years period it is trading in range of 20 and 50. The monopoly nature of business as mentioned on website is not backed by performance. The ranged prices means performance of Company is not growing year after year. It is just stagnant over the years.

AMD Industries My Opinion

AMD Industries have not broken the listing price. It is not a good sign for Investors and the Company. The growth oriented company moves past the IPO price and gain over the time. But it has not managed to do so over the period of 10 years and more.

Other problem is swift movement downwards.It took more than 3 years to move from 20 odd levels to 50 odd levels but quickly slipped down in recent beat down of Nifty and Sensex.

So if you are planning to invest in it then you should take care of not investing at higher levels. The business vertical of Company does look promising.

The Beverages and Bottle section will continue to grow with time. The consumption of these products will be on rise with growing population and economy of the country. Having said that these products grew in last decade as well. But that growth is nowhere visible in stock prices.

I would advice to stay away from this company for the time being. You can add it to your stock watch list and see how well the company performs with time in case you are interested after seeing monopoly position of the Company.