About Company:
IVP Limited, is part of the Allana Group, is a leading
Manufacturer & Exporter of Foundry Chemicals, Castings, & Allied
products, having over Eight decades of Experience in the manufacture and export
of a wide range of Foundry Chemicals, Castings and Allied products.
Indian Foundry Chemical industry is around Rs.1500 crores
and its products are used in the manufacture of metal cast components for
applications in Auto, Tractor, Railways, Defence, Textile, Cement, Power
machinery, Pumps, Valves, Construction, Electricals and special applications.
The Castings produced are ferrous, non-ferrous, aluminium alloy, cast iron,
steel, ductile cast etc.
IVP operates across two major market sectors of the foundry
chemicals industry – automotive castings and steel castings. Going forward with
improvement in economy these 2 sectors are going to grow and it would help IVP
to grow faster in comparison to preceding years.
Going forward with high expectation for turnaround in GDP
growth, control over inflation, a stable rupee and faster implementation of
policies, the manufacturing sector will be back on track and with that the
foundry industry will regain its growth trajectory. The Company has already
created adequate production capacity of foundry resins and related products to
take advantage of the opportunities that may arise on the recovery of demand.
The manufacturing facility for powder resins has been
consolidated and the Company has started producing the powder resins at Tarapur
plant. The Company is also looking at increasing export volumes. Company,
having realised that it is heavily dependent on resins for foundries and
in-order to reduce the dependency, has already made a foray in the area of
other non-foundry resins and as per initial feedback, the non-foundry resins
products have been well accepted in the market.
Financial Performance:
The overall performance of the Company dropped compared to the previous year,
due to weak economic conditions
|
in Cr.)
|
2015
|
2014
|
2013
|
2012
|
2011
|
|
Revenue
|
163.43
|
145.94
|
150.58
|
153.79
|
130.15
|
|
Other Income
|
1.41
|
1.55
|
1.37
|
0.9
|
--
|
|
Total Income
|
164.84
|
147.49
|
151.95
|
154.69
|
130.15
|
|
Expenditure
|
-152.62
|
-141.85
|
-145.15
|
-145.36
|
-125.02
|
|
Interest
|
-0.53
|
-0.26
|
-0.44
|
-0.42
|
-0.28
|
|
PBDT
|
11.69
|
5.38
|
6.36
|
8.91
|
4.85
|
|
Depreciation
|
-1.23
|
-1.2
|
-1.15
|
-1.14
|
-1.08
|
|
PBT
|
10.46
|
4.18
|
5.21
|
7.77
|
3.77
|
|
Tax
|
-3.53
|
-1.72
|
-1.52
|
-1.73
|
-0.58
|
|
Net Profit
|
6.93
|
2.46
|
3.69
|
6.04
|
3.19
|
|
Equity
|
10.33
|
10.33
|
10.33
|
10.33
|
10.33
|
|
EPS
|
6.71
|
2.39
|
3.58
|
5.85
|
3.09
|
|
CEPS
|
7.9
|
3.54
|
4.69
|
6.95
|
4.13
|
|
OPM %
|
7.48
|
3.86
|
4.52
|
6.07
|
3.94
|
|
NPM %
|
4.24
|
1.69
|
2.45
|
3.93
|
2.45
|
However on FY14-15 company has improved margins and net
profit increased by more then 100% which is a strong positive for stock.
It is almost debt free company and future business looks
promising.
Dividend: Company
has been paying dividend on consistent basis for last 5 years and this year
dividend is doubled to Rs 2.00.At current price of 53-55 it is available at
dividend yield of approx. 4%.
Stock is available at
forward PE multiple of 8 Long term investor may buy at CMP of Rs 53-56 long
term target for one year Rs 75.
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