Current price: Rs 76 (as on 7/5/97)

52 Wk H/L: Rs 295/74Details: Alfa Laval (India) is a 51 per cent subsidiary of Alfa Laval, Sweden, and is engaged in the manufacture of plant and machinery for industries such as dairy, beverages, processed food, chemicals, pharmaceuticals etc. It also produces a wide range of centrifugal spectators, plate heat exchangers, spray dryers, refrigeration compressors and custom fabricated equipment. The company has collaborations with Saunders Valve Co of UK with which it formed a new subsidiary called Saunders Valve (India). Alfa Laval's units are at Satara and Dapoli in Pune.

Analyst's remarks: It is now clear that the first half's loss of Rs 13.17 crore will more than double and stand at around Rs 30 crore for the full year 1996-97. Alfa Laval's turnover has already dipped by 50 per cent, and from the looks of things, it should be some time before the company returns to its optimal performance level. Hence, it would be prudent to sell this scrip and switch over to a more promising one.

Recommendation: Switch over.

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