Rajoo Engg will be a multibagger

Just to remind, Rajoo is a supplier to plastic players so it is riding on growth in that sector and increase in plastic business in India. It is the largest manufacturer of thermoforming solutions and has a wide range of blown film. It is a market leader and thus enjoys ensured business. Good play for multi-bagger returns. This is a micro-scale stock so it should be in your B catagery. Rajoo Q1 nos are technically good as NP and thus EPS has gone up significantly y o y. Valuation is not expensive. Downside is limited and upside could be decent if one can hold for a few years. Only thing which I did not like about the result is their revenues were lower y o y. Good think is they managed production with stock-in-trade (which is a low margin way) and thus their operating efficiency went up. If this is coupled with revenue growth in coming quarters, it will post even better nos. Balance sheet is good - net debt is nil. It is a add on dips and hold for 3 year stock. I already have good amount of shares but may add more if it falls more.