Regarding Sintex Industries

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by ramanmadan799, Apr 22, 2015.

  1. ramanmadan799

    ramanmadan799 New Member

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    I would like to know about Sintex Industries. I have been accumulating this stock and at present I am having 400 shares at an average price of Rs.118/-. I will continue to accumulate this stock on every dip. My horizon is around 2 years.

    Can you please also tell some shares for long term.

    Regards

    Raman Madan
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Sintex has been struggling a bit in the recent past. The monolithic segment appears to be a problem. In Q3FY15, the monolithic segment posted around 40% YoY de-growth. We'll have to see what happens in Q4FY15.

    The past track record is also not very encouraging given that the three years sales CAGR has been only 7% while the profits growth rate has been nearly flat. The ROE is also low at about 11%. Much depends on the Government's plans for mass housing projects. If that takes off, Sintex will shine.

    Lets wait for the Q4FY15 results to see whether there is any clarity of outlook.
     
  3. ssharma

    ssharma New Member

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    IMO it is a great turnaround story. Its performance should improve / is improving with government's focus on Swatch Bharat and infrastructure.

    I am accumulating this stock since it was at R's. 30. I continue to buy on dips. It constitutes 16% of my portfolio.
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Agreed! It is a well known stock which will benefit from the mass housing and swachh bharat abhiyan.
     
  5. whomiiitr@gmail.com

    whomiiitr@gmail.com New Member

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    I am an investor in sintex since the price of 70 and it has a habbit of showing awesome result and post result upward movement. So grab some quantity before the result on 27th april.
     
  6. sanju

    sanju New Member

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    I HV 1000 share of sintex at the rate 108.pls tell me what should I do.
     
  7. Nayan

    Nayan New Member

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    Sintex recorded very strong performance in FY15.
    • During FY15, it achieved highest sales (7000 cr), highest operating profit (1257 cr) and highest net profit (Rs.529 cr). A new high on all parameters!
    • The company managed to reduce its Interest expense first time in five years on y-o-y basis.
    • The debt equity ratio in FY15 has improved considerably over FY14, thereby strengthening the balance sheet.
    • In fact the performance in Q4FY15 is so far the best quarter in its history!
    • The current price of 95 yields a market cap of Rs.4075 cr. It looks attractive when compared with its operating profit of 1257 cr.
    • In building product segment, new products in segments of environment and clean fuels, cold chains and warehouses are driving growth along with traditional education and healthcare sectors.
    • The company has received fresh orders in Prefab segment from new territories and new product ranges.
    • Prefabs and Custom Molding business will drive the growth in FY'16 as well.
    • Sintex is the only company in India to get government approval for prefabricated biogas plants.
    • Management expects overall OPM to improve given the sale of high value added component getting increased.
    • Overall, management expects net sales growth of around 20% for FY'16.
    • However, promoters holding has fallen over the year from 41% to 34% in FY15.
    • In the current market weakness, Sintex's stock has dropped by 30% from its peak price. It could still see a decline of 10-15% should the market continue to fall over the next few weeks.
    • Watch out for 80-85 levels for entry.
     
    sanju likes this.
  8. sanju

    sanju New Member

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    Thank u very much
     
  9. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Mr. Vikas Sethi has recently recommended the stock:

    Sintex Industries – Attractive valuations and great business prospects
    :

    Sintex Industries, in addition to being a leading plastic and textiles company, is also into prefab building monolithic construction, custom moulding and waste water treatment solutions. These divisions have been doing exceedingly well over the last few quarters.

    Sintex Industries had recently reported its March quarter numbers and they were simply impressive. The net profits have gone up from Rs 161 crore to Rs 198 crore. With the kind of focus which the government has on low cost and affordable housing, apart from the Swachh Bharat Abhiyan which we are pursuing very seriously and the CSR initiatives by corporates as far as sanitation is concerned, they would all be pretty positive for this company.

    So I like Sintex Industries. As far as the valuations are concerned, the company reported around Rs 15 EPS for FY15. So it is currently available at around 7.5 to 8 times, which is quite attractive. So I am bullish on the stock and I feel in a year’s time we could see levels of Rs 175 on the stock.
     
    dhairya likes this.
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