It is market leader in industrial packaging with more than 75% share in the market. The company has made tie up with Mauser-Werke of GmbH of Germany, which is one of the largest producers of intermediate bulk containers,plastic, steel and fibre drums in Europe and US.The company could produce innovative polymer based products like Anti-spray devices,Plastic fuel tanks, OT safe Masks, High presuure pipes, Pre fabricated shelters and sound barriers etc.
The company has also forayed into telecom battery business with acquisition of Hyderabad based NED Energy and successfully launched UPS and automative batteries.It has made several acquisitions in Europe, Taiwan and Egypt. The company has succeessfully produced prototype composite cylinders approved as per European standards,for which commercial production has begun in June 2011.
The market capitalisationof the company is Rs.1441.81 crores having PE Ratio of 15.99 higher than industry average of 6.14. The higher PE does not deter further growth as the company is constantly innovating new products and applications and gradually acquiring smaller companies which will increase its market share and entering into JV with some companies to manufacture and supply goods globally. It is one of the companies for medium to long term bets for investment.
The financials of the company are also sound as the revenue of the company grew from Rs.535.23 crores in FY2008 to Rs.821.89 crores in FY2011 and net profit of the company has also risen from Rs.63.52 crores in FY2008 to Rs. 90.14 crores in FY2011. EPS of the company has increased from 2.78 in FY2009 to 4.31 in FY 2011.The current market price of the stock is Rs.68.80 as on 29.07.2011.
Top mutual funds in the country have acquired 22.834,987 shares of the company during the quarter ending June 2011 showing confidence in the growth potential.
No comments:
Post a Comment