How do you rate the prospects of Hindustan Inks and Resins?
With subsidiaries in the US and Europe (the two largest markets), Hindustan Ink is looking at exports to achieve a targeted five-fold increase in sales by 2005. Although it might miss this ambitious target, sales and profit growth should be good. The company’s US subsidiary has an order book size that will see it match its parent in sales in two years. At its current price of Rs 296, the stock discounts its projected March 2002 earnings 9.6 times. That’s attractive, given its growth prospects. But the poor liquidity in the stock means you should invest only with a three- to five-year horizon.
