IGARASHI MOTORS - TURN AROUND PERFOMANCE.

Igarashi Motors is originally promoted jointly by Crompton

Greaves and Igarashi Electric work of Japan as CG Igarashi

Motors .Later the foreign company bought the entire stake

from CG and changed name to the present one(Igarashi Motors).

Company manufactures DC micro motors that find application in

industries like  automobile, power tools, toys , domestic

appliances and office equipments. Most of its income

coming from automobile sector.Company’s plant is located in

Chennai.In automobile sector its products are used for engine

management, exhaust and braking systems.Due to huge foreign

exchange loss and bad shape of automobile industry ,company

posted dismal performance in last year. After that ,now the

company take various steps like loan restructuring ,selling

of some low margin business , re negotiation of product price

with customers ..etc. As a result of all these efforts

company back to profitability in

last qtr of the previous FY with a sale of 45 Cr and a NP of

4 Cr in that qtr.Since the company streamline its products and

customers to avoid loss making business ,its turnover was low

in last qtr. Company’s efforts seems to be paying off especially

at a time of global recovery in auto sector. Historically company

enjoying very high P/E since its listing.Considering

all these points it is a scrip to watch.

Currently it is trading around Rs.60/-