Stock Review: Surya Roshni

Surya Roshni has recently undertaken a large capacity expansion of over 350% in its lamps division and 30% in its steel pipes division. The company's consolidated sales have been growing at 11% over the past five years. It has been consistently paying dividends and given a return on equity of 20%. In the past one year, the stock has appreciated 46%. The open offer is at a marginal premium of 3% over the current market price. Given the past performance of the company and its future prospects, it will not be very lucrative for investors to tender their shares.