LISTING |
|
|
Rs 28 |
|
Rs 35/Rs17 |
|
Rs 10 |
PE Ratio |
6.3 |
Market Cap |
Rs 21.2 crore |
COMPANY OVERVIEW:
Sturdy Industries Limited was established in the year 1995. SIL is the flagship company of Chemiplast. The company operates in the following fields:
AGRICULTURE:
Micro Irrigation System(MIS)
Sprinkler & Drip Irrigation Systems
Greenhouse & Landscaping
HDPE, PVC, LLDPE Pipes
Floriculture/ Biotechnology Projects.
INFRASTRUCTURE:
Aluminium Composite Panel (ACP): The product is marketed under the brand name Sunbond. It is used in IT Parks, Malls, Hotels, Petrol Pumps etc.
ACC Roofing Sheets: It is used in godown, low cost housing.
PU Sandwich Panel: It is used in Telecom, Shelters, Cold Storage, Construction, Pre engineered building.
POWER:
Power Transmission & Distribution Aluminium Conductors
Aluminium wire rod, alloy wire rod for manufacturing cables and conductors.
Hydel power project in Himachal Pradesh.
Gas based power project in Punjab.
TELECOM:
Optical Fiber Cable Ducts.
PRODUCT MIX:
PRODUCT |
SALES(In crore) |
% of Total |
PVC Pipes & Fitting |
Rs48.2 crore |
40.77% |
AP Sheets |
Rs39.49 crore |
33.4% |
Aluminium color coated sheets/coils |
Rs19.32 crore |
16.35% |
Plastic Products |
Rs10.94 crore |
9.25% |
Others |
Rs0.25 crore |
0.21% |
KEY RATIONAL FOR INVESTMENT:
Nu-Line Industries and Swati Storwel, both Chemiplast group companies are being merged with SIL. This makes SIL much more integrated player. The merger has provided much stronger balance sheets for proposed diversification into power generation.
Sustained momentum in the micro irrigation systems business, where SIL is the only sizeable listed player beside Jain Irrigation.
SIL is well positioned to capitalize on the growth opportunity in the power T&D business, through manufacture of power cables, conductor and rods.
SIL’s building products business which comprises of ARC and ACP had a tough FY2009. However now construction activity is taking off which is good for the company.
We expect revenue to grow by 53% in FY2010E because of the huge decline in FY2009.
We also expect the EPS to grow by 35% in FY2010 from lower base.
SHAREHOLDING PATTERN:
|
|
NO. OF SHARES |
% OF TOTAL |
PROMOTER |
3435500 |
|
43.05% |
|
INSTITUTION |
0 |
|
0 |
|
GENERAL PUBLIC |
4545700 |
|
56.95% |
|
GRAND TOTAL |
7981200 |
|
100% |
|
FINANCIAL:
|
|
31/03/06 |
31/03/07 |
31/03/08 |
31/03/09 |
TOTAL INCOME |
61.51 |
70.39 |
120.73 |
107.61 |
YoY%Change |
|
14.43% |
71.51% |
-10.87% |
EXPENDITURE |
-56.2 |
-64.74 |
-112.18 |
-99.22 |
PBDITA |
|
5.31 |
5.65 |
8.55 |
8.39 |
YoY%Change |
|
6.40% |
51.33% |
-1.88% |
DEPRECIATION |
-1.9 |
-2.09 |
-1.17 |
-1.18 |
PBIT |
|
3.41 |
3.56 |
7.38 |
7.21 |
INTEREST |
|
-2.17 |
-2.34 |
-2.94 |
-3.23 |
PBT |
|
1.24 |
1.22 |
4.44 |
3.98 |
TAX |
|
-0.56 |
-0.13 |
-0.42 |
-0.45 |
PAT |
|
0.68 |
1.09 |
4.02 |
3.53 |
YoY%Change |
|
60.30% |
268.80% |
-12.20% |
Key Highlights:
Total Revenue has grown at CAGR of 20.5%.
PBDITA has grown at CAGR of 16.48%.
Net Profit has grown at CAGR of 73.15%.
RATIOS:
|
|
31/03/06 |
31/03/07 |
31/03/08 |
31/03/09 |
EPS |
|
0.85213 |
1.365915 |
5.037594 |
4.423559 |
PBDITA MARGIN |
8.632743 |
8.026708 |
7.081918 |
7.796673 |
NPM |
|
1.105511 |
1.548515 |
3.329744 |
3.280364 |
INTEREST COVER |
1.571429 |
1.521368 |
2.510204 |
2.232198 |
Key Highlights:
EPS has grown at CAGR of 73%.
PBDITA margin has declined over the period by 85bp.
NPM has increased from 1.1% to 3.2%.
Interest Cover has also shown improvement from 1.57 to 2.23.
COMPARISION OF Q4FY2009 WITH Q4FY2008:
|
|
Q4FY2008 |
%CHANGE |
Q4FY2009 |
TOTAL INCOME |
50.34 |
-60.11% |
|
20.08 |
EXPENDITURE |
-47.89 |
|
|
-18.88 |
PBDITA |
|
2.45 |
-51% |
|
1.2 |
DEPRECIATION |
-0.26 |
|
|
-0.25 |
PBIT |
|
2.19 |
|
|
0.95 |
INTEREST |
|
-0.6 |
|
|
-0.8 |
PBT |
|
1.59 |
|
|
0.15 |
TAX |
|
-0.17 |
|
|
-0.02 |
PAT |
|
1.42 |
-90.80% |
|
0.13 |
Key Highlights:
The decline is because of the tough FY2009.
Total Revenue declined by 60%.
PBDITA also showed decline of 51%.
PAT has declined by 90.8%.
VALUATION:
We expect the EPS to increase by 35% in FY2010E. The EPS is expected to be around Rs5.96. Seeing the growth potential in the business where SIL is operating we value the company at 10X to 2010E EPS. The fair value we reach is Rs59.
CONCLUSION:
Investors with 12 month investment horizon could start taking position on the counter. The downside is limited on the counter.
Find more Research Reports
Click here for Indian stock market tips
