About Company: Poddar Pigments Limited manufactures color & additive master batches
for dope dyeing of manmade fibers, and different plastic applications including
engineering plastics. The manufacturing facility of the company is located at
Jaipur, while its corporate office is located at Mumbai. It has a manpower base
of more than 400 personnel. The company has acquired technical capabilities from
Europe and production equipment from world leaders Coperion Werner &
Pfleiderer, C.F.Scheer, Brabender, and Pallman from Germany. To meet the
varying demands and requirements of its customers, the company provides
facilities like R&D services, and technical and marketing support.
With improving economy scenario the demand of plastics and
related products is going to see sharp growth in next 2-3 years. Company has
been growing topline at a decent rate excluding this year performance which is
almost flat. But interesting part of performance is NPM has improved by almost
25% which is remarkable and major reason could be drop in crude prices.
Decrease in crude prices and increase in demand are 2 major
positives for this stock.I had earlier recommended Plastiblends which is in to
similar space and has grown from 260 level to 340.Poddar Pigments is almost
debt free and trading at a PE multiple of 9-10 which is low.
Financials
(in Cr.)
|
2015
|
2014
|
2013
|
2012
|
2011
|
Revenue
|
318.31
|
313.23
|
275.55
|
221.93
|
186.48
|
Other Income
|
2.94
|
1.75
|
1.93
|
1.13
|
2.51
|
Total Income
|
321.25
|
314.97
|
277.48
|
223.06
|
188.99
|
Expenditure
|
-295.88
|
-292.06
|
-255.61
|
-204.15
|
-171.19
|
Interest
|
-0.6
|
-1.21
|
-1.69
|
-1.79
|
-1.48
|
PBDT
|
24.78
|
21.7
|
20.18
|
17.13
|
16.33
|
Depreciation
|
-2.85
|
-2.6
|
-2.65
|
-2.7
|
-2.33
|
PBT
|
21.93
|
19.1
|
17.53
|
14.43
|
14
|
Tax
|
-5.62
|
-5.64
|
-4.74
|
-4.58
|
-4.44
|
Net Profit
|
16.32
|
13.47
|
12.79
|
9.84
|
9.55
|
Equity
|
10.61
|
10.61
|
10.61
|
10.61
|
10.61
|
EPS
|
15.38
|
12.69
|
12.06
|
9.28
|
9
|
CEPS
|
18.06
|
15.14
|
14.56
|
11.82
|
11.2
|
OPM %
|
7.97
|
7.31
|
7.94
|
8.52
|
9.55
|
NPM %
|
5.13
|
4.3
|
4.64
|
4.44
|
5.12
|
Dividend
|
2.5
|
2.25
|
2
|
2
|
0.75
|
Company has been paying good dividend for last 5 years.
Looking at past performance and future demand Top line
Company can easily grow at 15% in next 2 years with a conservative NPM of 4.8
it can deliver revenue of 400 crores in 2 years which could result in profit of 19-20
crores resulting in EPS of 20 and at a similar PE multiple of 9-10 it can
easily touch 200+ in 2 years.
Long term investor should buy at CMP of Rs 138
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