Business Standard

Kesar Petroproducts can brighten your portfolio

Kesar commissioned a 300-tpm beta facility in eight months, against a benchmark of 18 months

Image
Premium

Mudar Patherya
The one mid-cap stock that appears simply waiting to graduate to the next league is Kesar Petroproducts. The pigments company comes from a background I can only describe as “romantic”.

Loss-making and a BIFR case and acquired by a new management. Bankers place restrictions on BIFR companies; you cannot borrow afresh; you can only grow through accruals. In Kesar’s case, the result was that the problem of a loss-making environment was replaced by the challenge of low capacity utilisation (usually accompanied by losses, as companies find it difficult to cover fixed costs).

This is where the Kesar Petro story becomes compelling. The
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in