SHARETIPSINFO >> Research Reports >> KABRA EXTRUSIONTECHNIK ( 30-09-2008)

 

Market Cap	Rs. 80 CRORE
Cmp	Rs. 103
Face value	Rs. 10
52 week high	Rs. 157
52 week low	Rs. 82
PE ratio	5.5
P/BV	1.7
Div / Share	Rs. 6
Div Yield	5.82%
Beta	0.45

COMPANY OVERVEIW:
Company was incorporated on 21st October, 1982 and was converted into a public limited company on 30th March 1984. The company was set up with the object of manufacturing Twin Screw Extrudes complete with downstream equipment for PVC Pipes, profiles, section and garments in technical collaboration with M/s Battenfeld Extrusionstechnik GmbH, West Germany.

The Company caters to the capital goods sectors by manufacturing plastic extrusion machinery that produces a wide range of plastic pipes. In case of (polyvinyl chloride) PVC polymer, pipe manufacturing accounts for 40% of the total plastics demand in the country. As a result, pipe extrusion machinery is one of the largest segments in the plastic machinery industry.
KEL recently started manufacturing machinery to produce plastics films such multi layers blown film (Mlf), which is used in the packaging industry. The company derives 35% revenue from export and plans to increase that to 50% over the next couple of years.

GROWTH DRIVERS:
Plastic consumption is increasing, the extrusion machinery industry is linked to the plastic industry has significant growth potential.
Consumption of PVC pipes have been growing in double digits.
Demand for high density polyethylene (HDPE) pipes is growing in telecom ducting, water supply, irrigation, fuel gas distribution etc.
Multi layered blown films (MLF) is growing at 20%, with milk and edible oil accounting for 80% of the total market.
Retail boom will also increase the consumption of plastics.

SHAREHOLDING PATTERN:

PRMOTER	4386569
INSTITUTION	11500
GENERAL PUBLIC	3577511
GRAND TOTAL	7975580

FINANCIAL:

		31-Mar-08	31-Mar-07	31-Mar-06	31-Mar-05
TOTAL INCOME		1505.52	1287.03	1038.81	739.9
EXPENDITURE		-1272.79	-1147.67	-937.19	-659.03
OPERATING PROFIT		232.73	139.36	101.62	80.87
DEPRECIATION		-33.74	-30.43	-15.13	-13.32
PBIT		198.99	108.93	86.49	67.55
INTEREST		-6.91	-4.91	-3.77	-1.22
PBT		192.08	104.02	82.72	66.33
TAX		-43.78	-31.4	-19.48	-20.52
PAT		148.3	72.62	63.24	45.81

CHANGE IN TOTAL INCOME

CAGR IN TOTAL INCOME FOR PAST 3 YEARS IS 26.71%

 

CHANGE IN OPERATING PROFIT

CAGR OF OPERATING PROFIT IN PAST 3 YEARS IS 42.2%

                  

 

CHANGE IN NET PROFIT

CAGR IN NET PROFIT IN LAST 3 YEARS IF 47.31%.

     RATIO:

	NPM		9.8504171	5.6424481	6.087735	6.1913772
	OPM		15.458446	10.82803	9.7823471	10.929855
INTEREST COVERAGE			28.797395	22.185336	22.941645	55.368852

VALUATION:

KEL`s current market cap is 80 CRORE. The company has investment in listed equity worth Rs 20 CRORE and own MF units worth Rs 9 CRORE.Both these investment contribute Rs 36 per share to its current market price of 103.
The company core business is available at just 67 per share- below its book value of 83. Which translate into a P/E multiple of 3.8 based on earning of past one year. Company has stable growth prospects, low valuation and healthy div yield. Consistent dividend limits the downside in the stock. Long term investor can consider this stock.

CONCLUSION:

Long term investor should add KEL in their portfolio as downside is low in this stock and good dividend is bonus for the investors.

 

 

HAPPY INVESTING.

Regards

Sharetipsinfo Team

 

To Know About our Packages Click here

 

 

Click here for Indian stock market tips