ROTO PUMPS LTD - BUY

 Roto Pumps ( BSE - 517500) started its operations in 1968 as a producer of progressive

cavity pumps , whose demand met by import till then.Company  also producing 

Twin Screw pumps and Centrifugal pumps in its two most modern facilities located

at Noida.Roto distributing its products around the globe and it has marketing offices in

Australia and UK.Recently company started a subsidiary in Germany .Company also

having strong marketing network in India.Progressive cavity pumps are used to pump

liquids with high solid content and flow needs to be controlled .These type of pumps are

generally used in industries like Beverages,Pharma,Food processing,dairy,Effluent and

sewage treatment and mining etc..Other type of pumps made by the company are used

in sectors like irrigation,agriculture..etc. More than  half of its sales coming from export

and this itself is a testimony for the quality of Roto’s products.Roto is going through a

capacity expansion programme and the benefits of this will reflect in the near future.

This is one of the cheaply valued listed player in this sector compared with KSB Pumps,

WPIL,Kirloskar ,Sakthi Pumps ..etc . Roto has  a tiny equity base of 3 crore

where promoters are holding almost 70%.Last year company posted a turnover

of Rs.76 crore and a net profit of Rs7.28 crore and an EPS of RS.24/- .On a continuous

basis ,for the past five years company steadily increasing its sales and net profit and

paying dividend without any interruption.Even in a difficult time for its user industries

company performed well.With a P/E multiple of just 4,Roto Pump is a safe bet for steady

return.CMP is Rs.99/-