Expect great return in Alphageo: Swaminathan

Swaminathan told CNBC-TV18, "Alphageo is a typical niche player into seismic data process interpretation. This company again is a consistent performer and it’s been growing 50% YoY and 50% in last financial year and the year before about more than 100%. The first quarter numbers, which were really big time. They did a turn over of about Rs 45 crore which was more than a 100% up and a fabulous margin of 52% whereas this sector reports a margin of anywhere between 40% and 45% with this company doing a margin of 45% as against the other players who report about 38% to 40%."

He further added, "Its order book is great and looking forward the NELP (New Exploration Licensing Policy) program which the government has, this is a consistent business where people have to execute projects worth Rs 8,000 crore to Rs 10,000 crore in seismic data acquisition alone. This has a clear visibility of 3-4 years and therefore the earnings and the profits should grow. On a very small capital base investors are likely to see a great return."

Disclosure: Analyst holds the above stock.