CMP: 72

Austin Engineering Company Ltd. designs and manufactures ball and roller bearings. The Company supplies its products to companies in India and elsewhere throughout the world.

Austin Engineering is a 25 Crore penny cap stock. Its currently trading at a P/E of 4 with strong dividend yields of well over 3% in the last 12 months. It runs at a debt of 8 Crores with 4 Crores cash in hand. Revenues have slowly risen from 65 Crores to 85 Crores in the last 5 years. Profits have been over and around 5 Crores in the last 5 years. NPM has been around 7% over the last 5 years. FY2012 has been good so far and profits should breakout above 7 Crores. Buy and book profits when Nifty peaks.