Sintex Industries Ltd, the Versatile Manufacturer Not Only Makes Water Tanks

Sintex Indudtries Ltd started its plastic division in 1975 and today the company has the most diversified manufacturing capabilities in plastic processing in the world with 10 plants and 12 manufacturing processes under one roof and has more than 5 lakh sq. mtr area. They have over 500 distributors and around 10000 retailers across pan India. They are also in textiles business and are pioneers in high value fabrics

 

Products

• Water Storage Tanks
• Electrical SMC
• Starter panels for agriculture application: Pumps & Motors
• Environmental & Green
• Industrial
• Prefabs
• Interior

 

Key Highlights

• FY16 Sales Highest ever at Rs. 77,335 mn
• Prefab Sales hit new highs up 25%
• Auto Segment continues momentum
• The company executed and commissioned their spinning capacity of 306432 spindles of compact cotton yarn which is the largest at a single location
• Despite commodity prices hitting multi year lows in December the company managed to successfully navigate and register 11% growth in Custom Moulding business during FY16.
• Building materials is on a b growth trajectory. Convectional products like Prefabs and water storage solutions continue to ride the wave of growth.
• Custom Moulding business is also on an ascending curve with the company having b foothold in key sectors of defense and aerospace, electrical accessories, medical imaging, mass transit, automotive and others in Europe and USA
• Fabrics business grew 30% for FY16 with a blend of new product introduction and fresh customer additions.

 

 

Q4FY16 Result Analysis

1. Net Sales stood at 2323.75 in Q4FY16 vs 2044.98 in Q3FY16 growth of 13.63%
2. Income from Operations stood at 2361.01 in Q4FY16 vs 2049.72 in Q3FY16 growth of 15.81%
3. Operating Profit stood at 372.48 in Q4FY16 vs 267.25 in Q3FY16 growth of 39.37%
4. PAT stood at 233.09 in Q4FY16 vs 179.80 in Q3FY16 growth of 29.63%
5. EPS was at 5.23 vs 4.04

 

Annual Result Analysis

1. Net Sales stood at 7733.53 in FY16 vs 7006.61 in FY15 growth of 10.37%
2. Income from Operations stood at 7793.89 in FY16 vs 7034.77 in FY15 growth of 10.79%
3. Operating Profit stood at 1052.86 in FY16 vs 950.03 in FY15 growth of 10.82%
4. PAT stood at 626.93 in FY16 vs 526.67 in FY15 growth of 19.03%
5. EPS was at 14.22 vs 14.43

 

Conclusion

The arguments stated above and considering the robust results delivered by the company there is no reason why Sintex should not be a part of one’s portfolio. Sintex share price is currently trading at 76 with a P/E of 5.48 which makes it very attractive. The book value is 119.32 and the stock has made a 52 week high / low of 121.70 and 63.50 respectively. The market cap of the stock is 3443 crores. The ratios for the stock are Current ratio 2.02, Quick ratio 1.82, Interest Coverage ratio 4.51, Debt Equity ratio 0.84, Return on Asset 5.46, return on Equity 11.25, most of the ratio are favorable for the stock, one could buy the stock at 76 adding on dips till 68 for a potential target of 87 for a short term and 108 for a longer time horizon.

 

Get more Support and Resistance Levels of the Share at Sintex Share Price Forecast.