Review

ASAHI SONGWON COLORS

Ticker : 532853
FV: Rs 10
52-Week H/L: Rs 256/63.05

We had previously recommended Asahi Songwon Colors in volume 36, issue no. 42 (dated August 10, 2020), when the stock was trading at Rs 229.90. Asahi Songwon Colors Limited is engaged in the business of manufacturing and export of colour pigments. Looking at the standalone quarterly trends, the net sales were down by 29.31 per cent to Rs 57.82 crore in Q1FY21 from Rs 81.79 crore in Q1FY20. The operating profit increased by 54.56 per cent to Rs 11.01 crore in Q1FY21 from Rs 7.13 crore in Q1FY20. Net profit expanded to Rs 9.53 in Q1FY21 from Rs 5.38 crore in the corresponding quarter of the previous fiscal year, showcasing a growth rate of 77.24 per cent. The company’s operating margins have seen steady improvement on a QoQ basis, coming in at 19 per cent in Q1FY21. We recommended our investor readers to BOOK PROFIT on the scrip on August 26, 2020.