Sunday, 10 May 2015



CMP Rs.108.35, Treget-150, Upside 38%

Strong fundamentals, Long term uptrend continues from sept. 2013.

Company description
Sintex Industries (SINT) is one of the most integrated plastics processors in India. The key areas of operation are Building materials (Prefabricated and monolithic construction), custom moldings, storage products and textiles. Building Materials business caters to two kinds of low-cost construction opportunities - (1) Housing, via monolithic construction, and (2) Non-housing, via prefab structures (rural classrooms and healthcare clinics, sanitation, army barracks, worker shelters, etc). The company will continue to benefit from the rising trend of "plasticization", i.e. substitution of metals by plastic composites across industries, mainly autos, electrical,

                                                        Mar '15             Mar '14            Mar '13            Mar '12           
Total Income From Operations       7,034.77            5,864.47          5,107.87          4,453.54         
Y to Y growth                                20%                  15%                 15%                  (1%) 
Net Profit                                       528.81               364.70             323.75             306.81
 EPS                                              14.43                 11.72               11.38                 11.32
Debt/Equity                                     0.8                    0.9                    1                        0.8
Price/Book value                              0.9                    1                      1.1  

# SINT’s business cycle is favorably poised with improvement in macro outlook and likely uptick
   in government and private spending in related verticals.
# The company will be a major beneficiary from government’s strong focus on wide range of
    infrastructure and social improvement plans viz. education, healthcare, sanitation, housing etc.
#  PE Ratio 10 lower than Industry PE 16 .
# Sintex continues to remain in the long term uptrend as it has made higher highs and higher lows since 2014. Recovery since September 2013 has seen the stock breaking its declining trend.After consolidating for almost 30 months, Sintex made a breakout from an inverted head & shoulders pattern.Confirmation retracement completed.Long journy just satrted. Maintain Strong BUY. Stoploss 100.

Recent Inteview of Sintex MD .

Recomendation to BuySintex Industries; target of Rs 163: Sunidhi Securities

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