Buy Sintex With Long Term View

Co Name: Sintex Ind. Ltd Reco: Buy (Continue)
CMP: Rs 160
Best Buy Level: Rs 140-145 (Accumulate dip around this level)
Target Price: Rs 210 (For 3-6 months), Rs 280 ( For 12-18 months)
Holding Period: 12-18 months

Investment Rational:
1. Sintex Industries' net profit rose 62.5% to Rs 68.24 crore on a 37% rise in sales to Rs 438.90 crore in Q2 September 2008 over Q2 September 2007. Other Fundamentals are also good like PAT margin and PBIDTA margin as well as ROCE and RONW (all above average compare to peers).

2. Operating profit margins for plastics fabricator Sintex rebounded sharply on a sequential basis to 16.7 per cent, a jump of over 565 basis points. The Rs 2,274 crore firm, however, posted higher consolidated revenues, up 85 per cent and a consolidated net profit of Rs 84 crore, up 87 per cent. The key plastics segment--- custom moulding, prefabricated and monolithic structures---was the main growth driver in Q2FY09, growing at 110 per cent y-o-y to Rs 645 crore. What's more, the firm's monolithic construction division, which now accounts for less than 10 per cent of revenues, has orders worth Rs 1,400 crore. That's nearly seven times the revenues posted by this segment last year.

Comments

Post a Comment

Popular posts from this blog

Global Markets, RBI Policy Review Will Dictate Trend (Oct20-25)

Concerns about a Global Recession may continue to weigh on the domestic bourses, which have tumbled in a global equities rout in the past few days. Lack of buying support has accentuated the decline on the bourses Foreign institutional investors (FIIs) continue to press sales. They have sold shares worth Rs 46,661.20 crore in the calendar year 2008 so far (till 16 October 2008). Investors now await the Mid-Term Monetary Policy Review by the Reserve Bank of India (RBI) due on 24 October 2008. Some reports suggest that RBI is set to cut the repo (repurchase) rate by a steep 50 basis points, to signal a strong shift in policy focus to growth from inflation. Repo rate is the rate at which RBI provides funds to banks against the collateral of government bonds for a day to three days. On the inflation front, experts feel that the wholesale price index is expected to move downward, and will eventually come down to single-digit numbers by January 2009. Inflation based on the whole price index ...
Read more

Macro Economic View on Stock Market (Short As Well As Long Term )

Dear All, Who -so-ever have interest in share market- current ongoing last few trading days were very confusing including today - but let me tell you, it was not like so. Following the ongoing election and the fund needed by different political parties and dismal performance by corporates (companies) in the last 2-3 quarters and also in coming 1-2 quarters, corporates were and are not in the position; as they were in the last election; but parties need fund. Now one of the ways that can assure them very good funds is share market. So what is happening in the market is, it is defying all the global cues for last 15 trading sessions and especially since the start of the election on Apr 18,09. Every day it is taking an almost u-turn in between start and close of the market. The market has turned as much volatile that no fundamental can be applied and behaving almost irrational and without any logic to support the volatility. The market is behaving like monthe expiry has approached. Its n...
Read more

Fundamental Call On Dec08,08

Buy Jhunjhunwala VanaspatiWith Short as well as Long Term View Co Name: Jhunjhunwala Vanaspati Ltd Reco: Buy CMP: Rs 72 (Dec05,08) Best Buy Level: Dip around Rs 65 (accumulate at or below this level) Target Price: Rs 82-85 (1-3 months), Rs 120(12-18) months Investment Rational: 1. Fundamentally, The company performance is quite consistant and it is registering very impressive growth in its Top Line ( Net Sales) and Bottom Level (PAT) of around 50% and 70% consequtively on average basis. It has EPS of Rs 48 (approx) so PE of 1.5 and BV = Rs 132. 2. 58% of its earnings comes from vanaspati oil and rest from soya, palm and Mustard oil. And, it has 35-40% market share in UP and Bihar. And, it has increased its market share over period of time. At the same time. the company has plans to increase its total capacity and to establish nes units in Bihar and West Bengal as well. Moreover, It has taken over a fertilizer comapany in Bihar to enter in Fertilizer segment.
Read more