Roto Pumps ( BSE - 517500) started its operations in 1968 as a producer of progressive
cavity pumps , whose demand met by import till then.Company also producing
Twin Screw pumps and Centrifugal pumps in its two most modern facilities located
at Noida.Roto distributing its products around the globe and it has marketing offices in
Australia and UK.Recently company started a subsidiary in Germany .Company also
having strong marketing network in India.Progressive cavity pumps are used to pump
liquids with high solid content and flow needs to be controlled .These type of pumps are
generally used in industries like Beverages,Pharma,Food processing,dairy,Effluent and
sewage treatment and mining etc..Other type of pumps made by the company are used
in sectors like irrigation,agriculture..etc. More than half of its sales coming from export
and this itself is a testimony for the quality of Roto’s products.Roto is going through a
capacity expansion programme and the benefits of this will reflect in the near future.
This is one of the cheaply valued listed player in this sector compared with KSB Pumps,
WPIL,Kirloskar ,Sakthi Pumps ..etc . Roto has a tiny equity base of 3 crore
where promoters are holding almost 70%.Last year company posted a turnover
of Rs.76 crore and a net profit of Rs7.28 crore and an EPS of RS.24/- .On a continuous
basis ,for the past five years company steadily increasing its sales and net profit and
paying dividend without any interruption.Even in a difficult time for its user industries
company performed well.With a P/E multiple of just 4,Roto Pump is a safe bet for steady
return.CMP is Rs.99/-
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