Zenith Fibres :514266 : A value pick at current price of 110-119

About Company: Zenith Fibres is the only Company in India manufacturing virtually the entire range of POLYPROPYLENE STAPLE FIBRE from very fine to coarse Denier. Company has State of Art Technology plant to manufacture PPSF at village Tundav, near Baroda.

Growing Automobile sector, infrastructure development, phenomenal growth in construction sector and many other related industries present a huge market potential for PPSF. Apart from servicing domestic market the Company has a significant presence in overseas market. The quality of PPSF is very well accepted in both domestic and overseas markets.

Financial Performance of Company: Company has been growing and maintained profitability in last 5 years and consistently paid dividend for last five years.

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Year	2015	2014	2013	2012	2011
Revenue	66.89	55.57	54.22	50.43	39.38
Other Income	2.32	1.91	1.75	1.36	1.08
Total Income	69.21	57.47	55.98	51.79	40.46
Expenditure	-59.26	-50.96	-48.51	-45.28	-35.66
Interest	-0.27	-0.24	-0.2	-0.16	-0.15
PBDT	9.68	6.28	7.27	6.36	4.66
Depreciation	-0.81	-1.11	-1.06	-0.94	-0.95
PBT	8.87	5.16	6.21	5.42	3.71
Tax	-2.96	-1.77	-1.76	-1.88	-1.26
Net Profit	5.91	3.39	4.45	3.54	2.43
Equity	5.09	5.09	5.09	5.09	5.09
EPS	13.36	7.67	10.06	8	5.5
CEPS	13.2	--	--	--	6.64
OPM %	14.87	11.72	13.77	12.92	12.2
NPM %	8.83	6.1	8.2	7.02	6.18
Dividend	25%	15%	20%	20%	15%

For year H1-2015-16 Company has already achieved revenue of Rs 33crores which was flat in comparison to last year but interestingly the net profit has grown by over 45% due to lower raw material cost. It is a DEBT FREE company Going forward demand of the product is set to rise with increase in demand and lowering raw material Cost Company should improve financial performance and could turn out to be a real multibagger.

It can deliver EPS Of Rs 17-18 for year 15-16 stock is available at forward PE multiple of 6-6.5 at current  price of 111-119.The stock had touch highs of Rs 164 recently and can easily cross the same again and create new highs of 200+.

Long term investor can accumulate this valuable stock at every dip.