CMP 53.50
· One of the leading players in sun control and Reprographic film market. Demand for both is growing very well in domestic as well as global markets.
· R&D oriented player with focus on innovation for various applications to add value. It also manufactures - Super clear films, heat sealable films, electric motor grade films and other specialty films.
· With input price volatility behind and also reducing debt levels, operations are showing better results. Current year [Sept.'10] performance is likely to be much better leading to further improvement in D/E ratio [so far key concern].
· Company may develop its prime property at Andheri, Mumbai; which can generate huge cash flows over next couple of years. [may be in multiple of present Mkt cap].
· Company has even larger surplus land at prime locations in Nasik and Aurangabad, which can be developed in future.
· Going by the Q-1 [Dec'09] results, we expect EPS to be around Rs 19 and cash EPS of over Rs 30/-for Y/E Sept'10. This will make stock very attractive around CMP of Rs 53/-.
· Its Present Mkt Cap of just Rs 123 Crs is not even fully discounting this core expected earning and improving D/E; while unlocking of real estate assets in future, may generate value in multiples of present small Mkt cap, in next 2-3 years. BUY.
IPL - III and all the controversies Drag n' drop
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