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Wednesday, June 17, 2015

Kabra Extrusiontechnik Ltd ( Face Value Rs-5) : A good pick in industrial machiney at CMP of Rs 71-75




About Company:  Kabra Extrusiontechnik Ltd (KET), a part of Kolsite group is a leading manufacturer of Plastic extrusion machinery in India. It offers a wide range of hi-tech single and twin screw extrusion lines for pipes, profiles, pellets, teleduct and mono & multilayer blown films plants. The company has over four decades of rich experience in plastics industry. It has got the coveted ‘Two Star Export House’ status. The Company has won ‘Excellence in Export’ award five times and also is an ISO 9000 Company.It has 2 manufacturing units in Daman.

The Company has technical collaboration with Battenfeld Cincinnati GmbH and has access to its technology for manufacturing Pipe Extrusion Lines. The Company also has access to technology of Gloucester Engineering Company Inc. USA (GEC) to manufacture high-end Blown Film Plants which find application in packaging for lamination, shrink and stretch wraps.

 The Company also offers PVC pipe extrusion lines in single as well as dual strand with Battenfeld Cincinnati technology. The Company manufactures round and flat drip lines having application in the irrigation field. The extrusion machines supplied by KET facilitate space savings, lower energy consumption and high quality output for its customers.

KET has been making a major export thrust. The Extrusion lines manufactured by KET match international quality standards making them globally accepted.

It has made substantial inroads into the African, West Asian & South East Asian markets & has selectively supplied even to the advanced European market too. Company   already has Extrusion Plants installed in 60 Countries. :

Financial Performance last 5 years
(INR Cr.)
2015
2014
2013
2012
2011
Income Statement
 
 
 
 
 
Revenue
271.28
223.16
179.94
192
220.27
Other Income
8.52
2.12
5.05
3
5.83
Total Income
279.79
225.29
184.99
195
226.1
Expenditure
-241.69
-200.04
-163.54
-176.75
-186.59
Interest
-3.44
-1.84
-2.78
-1.01
-0.46
PBDT
34.66
23.4
18.68
17.24
39.06
Depreciation
-7.61
-5.93
-5.84
-4.65
-3.88
PBT
27.05
17.48
12.84
12.59
35.18
Tax
-5.36
-3.26
-1.98
-3.35
-9.36
Net Profit
22.4
14.21
10.86
10.01
25.82
Equity
15.95
15.95
15.95
15.95
15.95
EPS
7.02
4.46
3.4
3.14
8.09
CEPS
9.41
6.31
5.24
4.6
9.31
OPM %
14.05
11.31
11.92
9.5
17.94
NPM %
8.26
6.37
6.04
5.21
11.7
Dividend(Rs)
2
1.5
1
1
1.75

 

Company has been consistently paying dividend in last 5 years this year it has shown excellent results which resulted in 50% growth in net profitability.

Stock is available at PE multiple of 10 going forward with improving margin and increase in demand company can further improve financial performance and in a good position to deliver EPS of 12 in next 2 years .Stock can touch price of Rs 120 in 2 years .Currently available at CMP of Rs 70 with  Rs 2 dividend. If stock is acquired and held for 14 month (Dividend normally is received in Aug)  investor could earn 2 dividends that could result in tax-free dividend yield of 6% plus capital appreciation. A good stock for long term investor

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