Tuesday, June 14, 2011
Multibase India Ltd is originally started operations as Synergy Poly in 1992. Company’s main product is thermoplastic elastomeric compounds includes master batches of synthetic resin, polypropylene, rubber compounds, thermoplastic master batches, silicone rubber ..etc.Company came through a two step change in management control and now a part of Dow-Corning (France)which is a subsidiary of Dow Corning Corporation USA ,a joint venture of American chemical giant Dow Chemicals and Corning Inc ., a world leader in specialty glass and ceramics.Company’s products are used mainly in sectors like Automotive, Personal Care, Personal hygiene,Stationery ,Telecommunications etc. It is unfortunate to see that ,even if the current promoters behind this company are world leaders in their respective fields and the products having good potential in a country like India,they are not giving sufficient priority to this company.As a result of their negligence and overall recessionary situation in past few years led the company into loss .Last year company moved to profit and in FY 2010-11 ,company posted a profit of Rs.2.91 Cr and an EPS of Rs.2.31.If the promoters are really interested in this company , the potential is huge for this MNC with the patronage of conglomerates like DOW Chemicals and Corning Inc. Keep an eye on the developments in this company which may be a multi bagger ,only moot question is the attitude of promoters. Currently it is quoting around Rs.31, where even huge loss making MNC’s are trading in three digits.