Stock Idea : Sulzer

Analysis - Sulzer India

About
Sulzer india is a 200 Cr company in the business of mass transfer technology (mixers, separation column etc) for industries such as refineries, chemicals, gas processing etc. The company is a subsidiary of Sulzer chemtech AG. The parent also has a fully owned subsidiary – sulzer pumps.
Sulzer india has received technology support from its parent, which holds 80% of the equity in the company

Financials
The company has maintained an ROE in excess of 25%, with the number increasing to around 40%+ in the last 2 years. The company’s total asset base is almost same as the cash balance, so net of cash the invested capital is a very low amount. In addition the company also has a source of additional capital – customer advance which reduce the net capital requirement in the business.
The sales have tripled and net profits gone up by more than four times in the last 4years. The company is debt free and now operates with negative working capital

See Rohit's blog:
http://valueinvestorindia.blogspot.com/2009/10/analysis-sulzer-india.html