Visaka Industries started manufacturing in 1985 with the commissioning of its Asbestos division in Hyderabad

Visaka's high-tech Fibre Asbestos plant is a fully automated factory incorporating the latest and most sophisticated technology. Resulting in consistency in physical properties and strength, which far exceeds the standards prescribed by I.S.I.

Currently Visaka produces 600,000 tonnes of fibre Asbestos sheets per year.

Visaka diversified into Textiles in 1992. In textile division, Visaka manufactures yarns using state-of-the- art Twin Air Jet spinning technology from Murata, Japan with 28 MTS Machines equivalent to 50,000 Ring Spindles. It produces about 7,000 metric tonnes of yarn per year and currently exports about 2,000 tonnes to countries around the globe.

Today, Visaka is acclaimed as the biggest Unit with MTS installation in the world. They have achieved the highest productivity and highest efficiencies, maintaining the best quality standards in the world.

Visaka Industries Limited got ISO 9002 certificate in 1995 and Export House status in 2001. Visaka's Yarns are used by leading textile mills to manufacture a wide range of fabrics including shirtings, suitings, fashion fabrics, upholstery and embroidery laces.Their products have been exported to various countries including Italy, Belgium, United Kingdom, Spain, Germany, Australia, Mexico, Turkey, Japan, Thailand and Indonesia since 1992

The company has total 9 operational factories.

Financial highlights

- Fantastic financials

- The Market Cap. is Rs 125 Cr (@89 Rs/share) while revenue is 401 cr so company is available 0.30 times of the revenue. This is extremely low compared to the financials, please read below for more details.

- The EPS of TTM is 17.20 and PE 5.4 at CMP 89

- The promoters are increasing their stake in the company. They bought 1.15 lakh shares in last 6 months from open market. That shows the confidence they have in the company.

- QIBs (FIs/FIIs/MFs) acquisition of 28.98 lakh stocks issued at Rs 136 per share in Jan-07. These QIBs included Reliance Capital, IDBI, GIC, UIIC, BNP Paribas, Sandadi Homes, Morgan Stanley, Deutsche Securities, Minivet, Peninsular South, Arudra Roofing & Magna.

- Together QIBs now hold 34% of the equity or 47.30 lakh stocks

- Consistent increase in revenue in last 5 years. Not a single drop. That’s an achievement.

- The revenue increased from 135 cr (2003) to 401 cr (2007) in these years.

- Consistent increase in profits (not a single drop) in last 5 years. That’s an achievement.

- The profits increased from 9 cr (2003) to 23 cr (2007) in these years.

- Consistent payment of dividend. The dividend has increased from 22% to 30%. So you are getting Rs 3 return on an investment of each Rs 89 (CMP)

- Net Current Assets (NCA) are 144 Cr and Current Liabilities (NCL) 39 cr. A positive difference of 105 cr shows the strength of the financial.

- If this Net of NCA and NCL are divided among 1.38 cr shares then we have a Rs 76 cash available on each share. This gives the required margin of safety

- The Reserves & Surplus is Rs130.47 cr and compared to share capital of Rs 13.8 cr, this is very good and can be a target for the bonus. The R&S has been consistently increasing over a period of time.

- The total debt is Rs 179.78 cr (Secured Rs 163.21 cr, Unsecured Rs 16.57 cr). Compared to 130.47 cr this gives D:E ratio of 1.37 which is healthy.

- The company reported Book Value of Rs 103.80.

Benefiting from rising rupee:

- The rising rupee would benefit Visaka indeed, even if they are an exporter. As per the latest annual report, Visaka imports more than it exports so a rising rupee is in its advantage. Visaka’s export stands at Rs 36.49 crore and Import at (Raw Materials, Components and Spare Parts, & Capital Goods) 75 crore. So a net deficit was around Rs 39 crore