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Diversified capital goods maker Alfa Laval (India), one of the market's favourite delisting candidate since 2007, delivered the most to investors in 2011. The stock returned 127 per cent in the last one year.
The company received approval from its shareholders in November 2011 for delisting. It recently hiked the delisting offer floor price from Rs 2,050 to Rs 2,850.
Alfa Laval supplies equipments to an extremely diversified stream of industries from dairy, life sciences, beverages to component makers and metal and mineral companies. Close to a third of its sales are exported, either to fellow subsidiaries or directly to clients.
Like many other MNCs, Alfa Laval has low debt, high cash and high return on equity. But unlike its MNC peers, Alfa Laval was more immune to the 2008 slowdown; its diversified profile ensured that it was not hit by slowdown in some industries. But dependency on overseas markets did hurt in 2010, as Euro zone concerns surfaced.
Sales dipped six per cent to Rs 836 crore, while profits fell 12 per cent to Rs 108 crore in the year ended December 2010. While financials bounced back in the nine months of 2011, cost pressures pulled down profits in the September quarter. The company imports most of its inputs.
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