Grauer Weil (India) Limited : Face Value Rs1 CMP18 :An interesting company in industrial chemicals,lubricants,engineering and reality

About Company : Grauer & Weil (I) Ltd., established in 1957, have is market leaders in the field of manufacturing and supplying Electroplating and Allied Chemicals and Engineering Plants to the Surface Coating Industry in India.It offer the most comprehensive range of Surface finishing Processes, complemented by state-of-the-art equipments and plating plants to the end user Industry.

They are one of the very few Surface finishing solution providers across the Globe, who can offer an integrated package of Electroplating and Allied Chemicals such as Anodising / Phosphating / Pre-treatment and Topcoats. They also develop Engineering Plants, Effluent Treatment & Waste Recovery Systems, Industrial Lubricants, High Performance Protective Paints and Coatings for the Industrial, Automotive and Marine Industry to name a few.

Company has 6 plants in India for chemical and lubricants and owns a mall in Mumbai

PLANT LOCATIONS :
1. , Dadra - Dadra & Nagar Haveli - U.T.
2.  Vapi - Gujarat
3.  Barotiwala - H.P
4.  Pune.Maharashtra
5.  Samba.J & K
6. Chembur, Mumbai

. MALL : Growel’s  Kandivli (East), Mumbai .

Financial Performance 2013-14 : The top-line grew by approx 16% to 389 crores while net profit increased by 55% to 30 crores. in last six months of FY-14-15 company has already achieved revenue of 191 crores with profit of 16,5 crore.Reduction in crude oil prices could improve the margin going forward.Company is poised to deliver revenue of 425 crores in FY14-15 with expected EPS of 1.7.

Company has been reducing debt over the years and for year 2013-14 debt equity ratio has ben brought down to 0.39 from previous year of 0,58.so with expected reduction in interest and payment toward debt should improve bottom line for the company going forward,

Valuation : Stock currently available at PE multiple of 10-11 based upon 14-15,expected  results.

Dividend : Company has been paying dividend for last 4 year.Last yeardividend declared was 16%

Investors can invest in the company from 1-2 year view for decent returns .Target price for one year Rs 25.Going forward it may prove multibaggar