Prakash Diwan of Altamount Capital Management told CNBC-TV18, "Igarashi Motors tries to portray that they don’t want to focus on auto anymore and we are even analysing it as an auto ancillary. In fact this company has started specialising in micro DC motors. The distinction is most motors that you see are AC motors. These are motors that can work on batteries as well. So they are so small -- things like motors that could go and unwinding your glass window when you press that thing. These are very small motors that are hidden in smaller places.”
“Because of a very interesting M&A situation, the company has landed up with an open offer to be made, which I think nobody is going to participate in that, nobody is willing to give it off so easily. Of course, the numbers are not so impressive as yet but the fact that it is going to get delisted and become the global sourcing hub for Igarashi USA, which is the parent company that now controls it, I think there is no limit to what topline growth it can see,” he added.
“It is a model very similar to FAG Bearings then they have gradually moved into. So this becomes an order sourcing place for most of its clients in and around Asia. If that were to happen, I think we could probably see a threefold increase in its topline over the next couple of years very easily. So my sense is the revised open offer could trigger a momentum in this stock,” he said.
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