Date post: | 19-Jul-2015 |
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Company Details
The Sintex group is one of the leading providers of plastics and niche textile-related
products in India. With global footprints spanning 9 countries, Sintex has a strong presence in
the European, American, African, and Asian markets including countries like France, Germany
and USA.
Established in India in 1931, Sintex has a proven track record of pio neering innovative concepts
in plastics and textile sectors in India and an uninterrupted 82 years of dividend payment to its
shareholders.
The company is organized into two business segments namely, textile and plastics. In the
textile division, the company manufactures high-value, yarn-dyed structured fabrics, corduroy
and items relating to home textiles. In the plastic division , the company manufactures the
following: storage solutions for water, oil and fuel; prefabricated structures, monolithic
structures, industrial custom moulded products, consumer custom moulded products and
interiors products. The company is having eight manufacturing facilities located at Kalol,
Kolkata, Daman, Bangalore, Nagpur, Baddi, Salem and Bhachau in India. The company is
headquartered in Kalol in Gujarat with 13 branch offices across India.
The company has reported a consolidated sales of Rs 1,826.03 crore and a Net Profit of Rs
161.09 crore for the quarter ended Dec 2014.
Category No. of Shares Percentage
Promoters 304,514,362 31.35
Financial Institutions 213,958,910 22.03
General Public 207,600,159 21.38
Foreign Institutions 168,689,185 17.37
NBFC and Mutual Funds 32,769,719 3.37
Other Companies 26,808,106 2.76
Central Government 121,659 0.01
Foreign – OCB 5,625 0.00
Market Cap (Rs Cr) – 4123.76
Company P/E – 9.15
Industry P/E – 17.05
Book Value (Rs) – 77.67
Dividend (%) – 70%
EPS (TTM) – 11.58
Dividend Yield (%) – 0.66%
Face Value (Rs) -1
Share Holding Pattern Financial Details
Industry Details
Ever since 1957, the Plastics Industry in India has made significant achievements as it made a modest but
promising beginning by commencing production of Polystyrene. The Phenomenal developments in the plastic
machinery sector is coupled with the developments in the petrochemical sector, both of which support the
plastic processing sector. Plastic material is gaining notable importance in different spheres of activity and the
per capita consumption is increasing at a fast pace. Continuous advancements and developments in Plastic
technology, processing machineries, expertise, and cost effective manufacturing is fast replacing the typical
materials. On the basis of value added share, the Indian Plastic industry is about 0.5% of India's GDP. The
export of plastic products also yields about 1% of the country's exports. The sector has a large presence of
small scale companies in the industry, which account for more than 50% turnover of the industry and provides
employment to an estimated 0.4 million people in the country. Approximately Rs.100 billion are invested in the
form of fixed assets in the plastic processing industry.
Typically, in an emerging market, demand growth for plastics is 2 to 2.5 times the GDP growth. Sadly this is
not the case in India where the growth at times has been lower than the GDP growth. The per capita
consumption of plastics in India at 5kg is much lower than that of China which averages 25kg. But India could
see very soon improvement in the production of Plastic. India today represents range of highly promising
opportunities for growth of plastics producers worldwide. The fragmented plastics industry in India is beginning
to consolidate, governmental regulations and trade barriers are coming down due to India's recent admission
to the WTO, and some large North American plastics manufacturers have already begun doing business here.
The Indian Plastic industry is at the verge of high growth rate over about 10%-12% which is contributed by
high growth rates, in turn, from the end-user industries. This trend has mainly been driving the automotive
sector, since the economy is already showing signs of recovery from the downturn.As the Plastic industry is
heavily dependent on reals estate, packaging and automotive sector, launching of new cars in the small
segments are expected to drive the demand for plastics.
Balance Sheet
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 31.12 31.12 27.11 27.11 27.10
Equity Share Capital 31.12 31.12 27.11 27.11 27.10
Share Application Money 28.31 28.31 0.00 0.00 0.00
Reserves 2,982.70 2,739.91 2,306.76 2,145.31 1,855.02
Networth 3,042.13 2,799.34 2,333.87 2,172.42 1,882.12
Secured Loans 2,373.84 1,612.21 1,415.42 1,391.35 1,058.72
Unsecured Loans 1,032.17 972.69 1,251.02 1,104.63 1,115.65
Total Debt 3,406.01 2,584.90 2,666.44 2,495.98 2,174.37
Total Liabilities 6,448.14 5,384.24 5,000.31 4,668.40 4,056.49
Application Of Funds
Gross Block 3,474.21 2,800.71 2,584.09 2,313.28 1,773.64
Less: Accum. Depreciation 808.72 693.67 574.02 524.73 437.05
Net Block 2,665.49 2,107.04 2,010.07 1,788.55 1,336.59
Capital Work in Progress 84.50 207.13 75.81 121.06 136.75
Investments 1,029.24 966.55 874.23 1,123.64 807.94
Inventories 168.28 200.97 175.77 174.69 168.70
Sundry Debtors 1,299.64 1,236.63 1,146.07 838.12 677.06
Cash and Bank Balance 102.70 355.19 605.63 45.73 77.36
Total Current Assets 1,570.62 1,792.79 1,927.47 1,058.54 923.12
Loans and Advances 2,031.73 1,085.21 1,022.11 530.34 794.13
Fixed Deposits 0.00 0.00 0.00 854.71 737.68
Total CA, Loans & Advances 3,602.35 2,878.00 2,949.58 2,443.59 2,454.93
Current Liabilities 890.18 732.44 612.35 510.90 385.65
Provisions 43.26 42.04 297.03 297.54 294.07
Total CL & Provisions 933.44 774.48 909.38 808.44 679.72
Net Current Assets 2,668.91 2,103.52 2,040.20 1,635.15 1,775.21
Total Assets 6,448.14 5,384.24 5,000.31 4,668.40 4,056.49
Contingent Liabilities 1,606.71 173.59 88.99 59.94 216.93
Book Value (Rs) 96.25 88.50 85.49 79.58 137.89
Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 3,233.12 2,969.26 2,562.59 2,718.74 2,103.56
Excise Duty 0.00 0.00 0.00 102.88 93.05
Net Sales 3,233.12 2,969.26 2,562.59 2,615.86 2,010.51
Other Income 97.81 -34.54 14.91 60.01 96.86
Stock Adjustments -23.37 28.85 4.32 -5.36 -13.97
Total Income 3,307.56 2,963.57 2,581.82 2,670.51 2,093.40
Expenditure
Raw Materials 2,188.14 2,096.10 1,763.35 1,764.22 1,371.44
Power & Fuel Cost 74.96 93.82 87.27 68.18 59.86
Employee Cost 112.99 106.40 94.46 85.62 74.97
Selling and Admin Expenses 0.00 0.00 0.00 55.12 54.08
Miscellaneous Expenses 117.76 113.53 104.71 42.52 54.34
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 2,493.85 2,409.85 2,049.79 2,015.75 1,616.45
Operating Profit 715.90 588.26 517.12 594.75 380.09
PBDIT 813.71 553.72 532.03 654.76 476.95
Interest 237.38 118.09 110.49 86.82 51.32
PBDT 576.33 435.63 421.54 567.94 425.63
Depreciation 138.33 123.18 98.05 89.25 84.03
Profit Before Tax 438.00 312.45 323.49 478.69 341.43
PBT (Post Extra-ord Items) 438.00 312.45 323.49 471.63 334.67
Tax 102.94 43.26 93.79 114.07 60.97
Reported Net Profit 335.06 269.19 229.70 357.56 273.70
Total Value Addition 305.71 313.75 286.44 251.53 245.01
Equity Dividend 21.92 21.92 17.74 17.74 16.38
Corporate Dividend Tax 3.72 3.56 2.88 2.84 2.67
Per share data (annualised)
Shares in issue (lakhs) 3,131.10 3,131.10 2,729.91 2,729.91 1,364.95
Earning Per Share (Rs) 10.70 8.60 8.41 13.10 20.05
Equity Dividend (%) 70.00 70.00 65.00 65.00 60.00
Dividend History
Index and Company Price Movement Comparison
Company Forecast
Symbol Value Action
RSI(14) 62.213 Buy
STOCH(9,6) 69.965 Buy
STOCHRSI(14) 89.825 Overbought
MACD(12,26) 7.000 Buy
ADX(14) 44.590 Buy
Williams %R -16.134 Overbought
CCI(14) 108.9592 Buy
ATR(14) 18.8429 High Volatility
Highs/Lows(14) 20.8893 Buy
Ultimate Oscillator 54.622 Buy
ROC 210.132 Buy
Bull/Bear Power(13) 54.9540 Buy
Technical Indicators
PBIT – 17.25 v/s 15.37
RoCE – 10.72 v/s 9.67
RoE – 11.76 v/s 10.67
Net Profit Margin – 10.01 v/s 8.89
Return on net worth – 11.11 v/s 9.71
D/E Ratio – 1.13 v/s 0.93
Interest Cover – 2.91 v/s 4.41
Current Ratio – 1.96 v/s 1.83
Reserves – 2982.70 cr v/s 2739.91 cr
PAT – 335.06 cr v/s 269.19 cr
Total assets – 6448.14 cr v/s 5384.24 cr
Net sales – 3233.12 cr v/s 2969.26 cr
Book Value – 96.25 v/s 88.50
Days BSE NSE
30 105.33 105.42
50 100.82 100.85
150 90.20 90.20
200 88.20 88.22
Important Ratios Simple Moving Average
Recommendations
Buy Sintex Industries Ltd. at current or
lower market levels
Reasons for the recommendations are :
Sound financial position of the company.
Availability of adequate manufacturing facility to meet demands.
Capex is not required in near term.
Releasing of pending funds by government and its efforts on small housing schemes will increase cash flow
and revenue.
Huge difference in per capita expenditure on plastic by Indian population when compared with rest of the
world.
Growth forecast of real estate, automobile and textile industry will add to the growth of the company.
Well diversified product mix will help to tap the product mix.
Improved QoQ performance of sales.