Plastiblends India Limited (Face Value 5) : Buy at CMP 244 One year Target 325

Plastiblends India Limited is India's Largest manufacturer and exporter of color and additive master batches and thermoplastic compounds for plastic processing industry.Company products are used  all major manufacturing industries such as agriculture,electronics,wire and cable,automotive,packaging,appliances,telecommunications etc.

Revenue: Company has grown top line at a decent pace in last 5 years and with ongoing focus of make in india company could see serge in demand in coming future.In year 2013-14 turnover was 465 crores with Net Profit of 27,24 crores , achieved EPS of Rs 21 .

Dividend: Company has been paying consistent dividend in last 5 years.Year 2013-14 declared dividend of Rs 5.

Positives: Reduction in crude oil prices will impact positively and the net profit margins should improve

Outlook :Company could deliver EPS of approx 25 in year 2014-15 at a PE multiple of 10 the stock looks cheaper at CMP of 240-244.Going forward in year 2015-16  expected revenue could be in range of 560-570 crores with net profit of 40 crores which would result in EPS of 30.With conservative PE multiple of 11-12 stock could touch 325-350 in 1to1.5 years time period.

Stock is worth investing for long term investor at current levels.