Sintex Inds
Sintex Industries is a market leader in plastics and niche textile products in India, makes innovative building plastic products, custom mouldings and textiles. Plastics segment accounts for 90% of consolidated revenues, with balance from textiles. For H1FY14, the company posted a revenue of Rs. 2,493 crore on PAT of Rs. 120 crore, resulting in half yearly EPS of Rs. 3.84, of which, Rs. 2.34 was clocked in Q2 alone. In Q2FY14, consolidated revenues and PAT rose to Rs, 1,364 crore (up 21% QoQ) and to Rs. 73 crore (up 56% QoQ), resulting in margin strengthening. Ongoing spending on social schemes helped maintained robust execution in prefab segment, mainly in states of Madhya Pradesh and Maharashtra, while custom moulding business, where company is eyeing inorganic opportunities to acquire specific customer or niche technology, saw double-digit growth on traction in overseas contracts.
As of 30th September 2013, company’s networth stood at Rs. 3,283 crore, translating to a BVPS of Rs. 106. Total debt is Rs 3,648 crore, with cash and equivalents of Rs. 923 crore. Thus, net debt to equity ratio is comfortable below one i.e. at 0.8:1. There was an FCCB overhang on the stock, which led to correction in share price by over 60% in the past 12 months. Also, exclusion of the stock from NSE’s derivatives (F&O) segment from August 2013 added fuel to the fire. The company is currently stream-lining its businesses and focusing on execution. It is cutting down on the monolithic construction space, where receivables block precious working capital and diversifying custom moulding into other verticals away from automobiles.