PENNY STOCK PORTFOLIO V2.0: Aksh Optifibre is delivering 210% in 1.5 years
Aksh Optifibre was one of our stock pick from our Penny Stock Portfolio Version 2.0 which was released in June 2016. The stock was recommended at a price of Rs. 15 and it has recently touched a high of Rs. 46.50, up by 210% in a matter of our 1.5 years. Here is the stock performance –
RECO DATE: 20th JUN’16 RECO PRICE: Rs. 15 PEAK PRICE ON 8th JAN’18: Rs. 46.5
When we recommended the stock as one of the 10 stock picks from Penny Stock Portfolio V2.0, we had issued a Research Report. The report consisted of few reasons why we projected the company delivering such growth going forward. We would like to share the details of the report with you –
Excerpts from our Research Report issued on 20th June 2016
ABOUT THE COMPANY
Aksh Optifibre Limited is engaged in the manufacturing and selling of optical fiber, optical fiber cable; fiber reinforced plastic rods and impregnated glass roving reinforcement. It provides e-governance services, fiber-to-the-home (FTTH) and Internet Protocol television (IPTV) services in North India.
It offers services, including iControl, which is built upon an optical fiber network system; 1 Stop Aksh, which provides e-governance solutions to the public; FTTH, which includes delivery of telephony, packet data and video to the home through a single bi-directional fiber optic strand, and turnkey projects, which provides turnkey solutions.Its products include single mode and multi-mode optical fiber cables; Smartcore Duct Cable; Smartcore Aerial Cable and teleglass water blocking yarn, among others. It also trades in telecom and electronic items.
KEY DATA OF THE COMPANY
SHAREHOLDING IN THE COMPANY
REASONS WHY WE RECOMMENDED THE STOCK IN JUNE 2016
1. The optical fiber cables which the company produces contributes nearly 90% to the sales of Aksh Optifibre. The global Optical Fiber Cable demand has reached 392 million fiber-km registering a growth of 17% YoY as on March 2016.The current valuation of Optical fiber stands at USD 7 Billion and is expected to touch USD 12 Billion by the year 2020. This increased demand for optical fiber cables will help Aksh grow its top and bottom line in coming years.
2. The company is planning to diversify its business in the field of eyewear, lighting, solar products and financial technologies that include ATM business as well. These new fields that the company is planning to enter will add another dimension to their product line-up. The company expects to increase their margins in coming 4 to 6 quarters with the new businesses.
3. Trading at a PE of 7 where the average PE of its peers is 23-25 and at a PB 0.6 where the peers have a PB of 3-4 in the industry proves that it’s trading at a cheap valuation.
In the month of March 2018, we are coming out with the 4th version of our Penny Stock Portfolio. CLICK HERE to read more…