CMP: 49

Mewar Polytex Ltd. manufactures polypropylene bags. The bags are used to package soapstone, minerals, and chemicals.

Mewar Polytex is a 16 Crore penny cap stock trading at a P/E of nearly 15. It runs at a debt of 10 Crores with nearly 1 Crore cash in hand. Revenues have risen from 25 Crores to 36 Crores in the last 5 years. Profits have stayed flat and below 1 Crore in the last 5 years. Profit margins have stayed around 3% over the last 5 years. Last 2 quarters have posted 100% growth on a YoY basis on improved margins. If the trend continues into coming quarters, this will be a multi-bagger of 2013. Buy with minimal exposure and hold.