Opto Circuits Ltd closed flat at Rs.22.15, above the stop loss of Rs.22. It is really strange that the shares of a company which has around 14 subsidiaries could be trading at such a dismal price. The construction work at the Malaysian facility is finished and the erection of machines will be finished soon--this facility will be at the core of the entire restructuring process that the company has envisaged. It is developing innovative low cost products, suitable for the developing economies. Since the low cost economies like Africa, parts of Asia, parts of Middle East & the Indian subcontinent are the fastest growing markets; these low cost products will bring in the highly sophisticated products at affordable prices to these markets. We see yet another avenue of growth in the new product launches in the Invasive and Non-Invasive segments of our business. The Bangalore-based maker of medical diagnostics and interventional products, had last year commenced work on its new single-product special economic zone (SEZ) at Hassan. The company is investing close to Rs.200 crore on setting up a greenfield manufacturing facility, a top company official said. It has acquired around 250 acres at the industrial growth centre in Hassan from Karnataka Industrial Area Development Board (KIADB). Three group companies of Opto Group will set up their manufacturing facility at this SEZ. The construction is expected to get completed by the end of CY13. Moreover, it FY13, EPS is Rs.9.95, which gives a target of Rs.120-125 for the scrip, in the long term. On the bright side, new product launches in various geographies are expected to keep the growth momentum going. Besides, the shift of production to the confined three locations is expected to improve the operating leverage. Keep accumulating the scrip on all declines, like you do in case of Fixed Deposits. CLICK HERE.
Yesterday, a buy call was given on Network 18 Media & Investments Ltd (BSE Code: 532798) at Rs.28.20-28.40, for a short term target of Rs.35.
As expected Manappuram Finance Ltd closed with a minor gain of 1.69%, as it closed at Rs.15, yesterday. The gold loan companies with their solid business models are expected to give good returns going forward.