Asian Eletronics Ltd......

Asian Electronics Ltd: The Hidden Gem
BSE Code: 503940 , Book Value: Rs.71.17, Face Value: Rs.5, Market Cap: Rs.70.53
Target: Rs.29—Rs.30—Rs.35. Stop Loss: Rs.19.5 (exit)
Asian Electronics Limited (AEL) is India’s leading Energy Services Company (ESCO) manufacturing energy conservation products and energy saving lighting products or it is a leader in the niche energy efficient lighting industry. Asian Electronics Ltd has entered into an arrangement with an alternative energy company, for commercial exploitation of technology indigenously developed by Unique Waste Plastic Management and Research Co Pvt Ltd for conversion of Waste Plastics into Liquid Hydrocarbons (oil and energy). This is a great news for the shareholders, in general.
This economically viable technology, the first of its kind which is getting commercially implemented, has a dual benefit in terms of environment friendly disposal of waste plastic as well as generation of fuel and / or to energy. The company has already started benefiting from the said arrangement by addition of new customers for its energy conservation products customized for the said purpose. The company also expects to derive substantial benefits from this new enterprise in due course.
Earlier, the Board of Directors has also approved a proposal for investment in a company abroad called STS PCB Limited, which will give 49% stake in the Share Capital of the said Joint Venture. This company was established in Ireland in the year 2003 and presently engaged in manufacture of Electronic Manufacturing Services (EMS) by technocrat promoters. The company expects that the Investments will be mutually beneficial as it will give the Company a ready manufacturing platform in Europe and it will give a reliable and cost effective back up in India to the Joint Venture.
Asian Electronics, has also entered into a JV with the Future Group to capitalize on the retail boom. Some of their clients include Reliance Fresh, Big Bazaar and Maharashtra State Electricity Board.
It has struck an agreement with HPCL on processing refinery bottoms and successfully process the bottoms and convert this into a useful energy. The trial runs have been successful and the company according to my sources is about to start (or has started) commercial productions. This is an extension of its original power story. As far as the revenue stream is concerned, HPCL alone should be having somewhere around 3,000 tonne of bottoms available on a per day basis. It might take at least a year before its entire facility could be used. The company expects to have revenues per liter in the region of about Rs.3-5 or so, as pure processing charges.
The company earlier said that it would start with about 300 tonne per day adding to a bottomline of somewhere around Rs.100-150 Cr of processing income from the HPCL sources. Moreover, the company has made its plants a bit more versatile in terms of engineering modification whereby in addition to the plastic waste, it will be using the refinery waste as the input. The company is poised for impressive growth in the next few quarters.
Chart Check: From the charts it has been found that most of the Parameters are in buy Mode, except Stochastic. Stochastics (both slow and fast on daily charts) are giving mixed signals on the charts. The Candle Stick Pattern indicates an end of a spell of downturn.

However, the stock is near its 52-week low price of Rs.20.90 and has minimum downside from here. Considering the Probability approach, the Expectation of the scrip to rise up should more be than going down further. Hence one should buy this stock for a short term price target of Rs.40/-, in the next 6 months time frame. CMP -->Rs.23.60.