CMP: 31

Ausom Enterprise Ltd. trades packaging, paper, and commodities.

Ausom Enterprise is a 43 Crore penny cap stock. Its currently trading at a P/E of 4. Minimal on liabilities and a negative book value. But that's compensated by the recent profit growth by the company aided by liability reduction 2 years back. Revenues have grown from 25 Crores to 1013 Crores in the last 5 years which is indeed awesome. The company was in losses till FY08. The company has turned around since then and has been consistent in profit growth since then making more than 7 Crores in FY11. Q1 FY12 has given profits of close to 4 Crores with more than 100% growth YoY. NPM is just inching 1% which leaves lots of room for future growth. Buy with minimal exposure and increase exposure slowly as the stock rises.