Pick of the Week: ASIAN ELECTRONICS

FOR MEDIUM TERM BUY

ASIAN ELECTRONIC

Equity: 14.94 Cr, BSE Code : 503940, CMP : 111.95

BUY ASIAN ELECTRONIC @ 111.95 Target Rs. : 140.00

Asian electronic was incorporated in 1963; earlier company was in the manufacturing of components like resistor and Capacitor. Till 1980 Asian electronic was a small player with poor track record and accumulated losses and Labor losses. At present Asian electronic Limited (AEL) is involved in design, manufacturing and marketing of energy efficient products and specializing in lighting solution. AEL has two segment (A) Manufacturing and operating lease of energy Products division and (B) Lighting division.

Under the Energy efficient Products it has (A)(1) Energy saving companies (ESCO) (A)(2) Sales and Maintenance contract. Lighting constitute of (1) ESCO and Retrofit (2) Conventional fitting products.

AEL has it.s manufacturing facility at Nasik (Maharashtra), Silvasa and Chennai, with world class facility and able to meet international standard. Across globe it is known for it�s product and services. AEL is offering elegant, efficient and high quality Luminaries for use with T8/T5 FTLs, CFLs, MV, SV, HID, lamp for all possible application in the domestic, corporate, Industrial, Down Lighting, Floodlighting, Landscaping segment and for special purpose like in the pharmaceutical Industry.

AEL's nationwide presence and strategic international partnerships is making its mark in the Lighting world. AEL has recently added new high growth business segment i.e. manufacturing equipment for converting waste plastic into hydrocarbon and in turn producing power from it. AEL�s unique technology to convert waste plastic into energy (plastic2power) has a capability to address the global issue of waste plastic handling. �AEL has huge order book of around Rs4400 crore, to be executed over two years. A bulk of these order are of ESCO from the various state electricity Board (SEB) and power Utilities.

Sales and NP for year ended were 366.6 Cr & 66.6 Cr. Sales and NP for latest Quarter 44.4 Cr & 4 Cr. Due to poor results in one quarter, and due to extremely weak market sentiments, this scrip has nearly collapsed. One can buy this scrip from long term point of view for good appreciation.