Lalit Thakkar, Director Research of Angel Broking is of the view that KS Oils is a very attractive proposition at this juncture.
Thakkar told CNBC-TV18, " KS Oils is a mustard manufacturing company. After the introduction of VAT, we are seeing consolidation happening in this industry and KS Oils is well positioned to grab this opportunity."
He further added, "KS Oils, which was having a market share of around 2% in mustard oil production, it is now 5% and looking at the expansion they have implemented, their market share will go up to 15%. At the same time the company has been regularly infusing capital through dilution and they have been able to ramp-up their net worth from Rs 50 crore to Rs 200 crore. If you look at the valuations the company is trading at 7 PE, so it's a very attractive proposition at this juncture."
Disclosure: I personally do not hold any of the stocks. However, we may have recommended some of them to our clients.
