Chart showing low MC to NCAV stock outperform that of high counterpart

“A picture is worth 1000 words”.

Below is a chart showing stocks having low MC to NCAV outperformance their counterpart over a decade.

image

Ajanta Pharma – Company Analysis

Ajanta Pharma:

  • specialty pharmaceutical company engaged in the development, manufacture and commercialization of pharmaceutical products.
  • It employs over 2,500 people worldwide and its products are sold in over 25 countries.
  • company website: http://www.ajantapharma.com/

VST Tillers & Tractors – Company Analysis

VST Tillers:
  • company is engaged in manufacturing farm equipment, tractors and diesel engines
  • it is belong to VST group of south India.
  • It has technical tie-up with Mitsubishi of Japan
  • It has 50% market share in tillers used in agriculture in India.
Manufacturing facilities:
  • It has 3 plants in Karnataka state of India.

POSITIVES:

  • belongs to prestigious VST group
  • technical support from Mitsubishi  of Japan
  • market leader in tillers segment. there is not presence of big company in this segment.
  • little debt
  • investor friendly company
  • Agriculture sector is always remain in focus in budget and Govt provide various sops

NEGATIVES:

  • Raw Material costs
  • poor monsoon can reduce demand