In fact I was not interested in opening a new thread, just wanted to bring to the notice of the members about a stock which is purely India oriented and that too only to Rural India. Given increasing rural income, there is a steady tendency to have a semi 'pukka' house with at least an 'asbestos' roof and Viska is one of biggest producer of asbestos sheet.
Visaka's increasing revenue indicates good fortune for the company. Q2 FY 10 sales was down due to shut down of the Pune factory [http://www.thehindubusinessline.com/2009/10/27/stories/2009102751900300.htm].
It's PE is also attractive.
There are two concerns -
1.Health concern about Asbestos sheet.
2. This company is planning to jump into Power Bandwagon

Experts opinion please regarding the stock

Visaka Industries is setting up a 100,000-tonne capacity asbestos cement sheet plant at Sambalpur in Orissa at an estimated cost of Rs40 crore to meet the rural demand, according to the company’s vice-chairman G Vivekanand. Further, the company is also ramping up the capacity of its Pune plant from 65,000 tonne to 100,000 tonne at a cost of about Rs15 crore. This is expected to be ready in a year.
On the power front, the company has also inked a memorandum of understanding with the Orissa government for setting up a 1,000 Mw plant. The project is expected to be set up in two phases at a cost of Rs4,000 crore.
Visaka has already initiated the land acquisition process for this project and will form a special purpose vehicle in a joint venture to execute the project. According to a company official, internal accruals and long term debt will be sought for the project.
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WHY NOT GO FOR HYDERABAD INDUSTIES .

HOW THE 2 COMPANIES  STANDOUT ON COMPARISON BASIS

Practically speaking how much PE multiple can we ascribe for a business that has known health issues? The question being is this fairly priced?