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Photoquip


Photoquip manufactures digital studio flash lights, photographic accessories etc.

The company has a global presence for flash lights and accessories – with growth potential in unexplored global and local markets.

The company reported good growth in revenues and operating profits over the last five years – reporting about 7cr in operating profits on revenues of about 60cr in the last financial year.  It employed minimal net debt to finance its operations.

The business is primarily exposed to the risk of technological obsolescence in its field as a result of electronic innovations.  It is also exposed to a strengthening INR as it’s a net exporter.

The company is exploring entry into the electronic goods market.  Management claim to have the expertise but they have no direct track record in this field and the extent of resource commitment is unknown. 

Moreover, management have not paid any dividends in the last five years raising questions on their attitude towards minority shareholders and the wisdom of reinvesting all their resources for future growth – particularly in a dynamic industry such as this.

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