Accumulate Sintax Industries…
Posted by cvbasheer on January 22, 2010
Sintex Industries Limited or Sintex is primarily engaged in the business of Plastics and Textile. Major chunk of the revenue of the company comes from the Plastics business wherein it Manufactures a range of products for both Commercial and Retail purposes. The products include; Prefabs, Monoliths, Storage tanks, Containers, Doors, Windows and Plastic section. Under its Textile division, Sintex manufactures men’s structured shirting fabrics, yarn-dyed corduroy and ultima cotton yarn-based corduroy. It is also into manufacturing fabric for ladies wear. The Company provides the above solutions through its Indian arm, and its Subsidiaries namely; Zeppelin Mobile Systems India Ltd., Bright AutoPlast Pvt. Ltd, Wausaukee Composites Inc. and Nief Plastics SA.
At the Trailing market price of Rs 259, the company trades at 1.5x and 9.1x its FY 11E, P/BV and P/E ratio, which seems cheap considering Sintex being the leading company catering to the high growth Custom Moulding and Low Cost Housing segment in India. Moreover, with the governments thrust in the development of Urban and Rural Infrastructure through projects like JNNURM, Bharat Nirman etc.; the future for Sintex looks bright. We recommend to Accumulate the stock with a Target of Rs 338 in One Year.