Stock Review: TAPARIA GROUP

This TAPARIA GROUP company manufactures polystyrene and was suffering till FY09 due to an industry-wide oversupply situation that squeezed margins. However, its fortunes improved substantially in FY10, and yet the company's profits for FY11 were 45% higher than FY10. In these two years, the company shifted from commodity polymer to more value added products and expanded its capacities. A global rationalisation in polystyrene capacities is benefiting the company as domestic demand picks up. The scrip has gained 41% in last one year and is still trading at around 8 times its earnings for the trailing 12 months