Discussion in 'Latest Brokerage Stock Buy-Sell Reports' started by Hemanghi Gandhi, Aug 24, 2018.

  1. Hemanghi Gandhi

    Hemanghi Gandhi New Member

    Aug 1, 2016
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    Company :

    Gujarat Intrux Limited was established as a Public Limited Company in the year of 1992. Company has set up "Sand Casting Foundry" Project supported by time tested process controls with the help of customized foundry software, making it capable to cast most complex shape in almost any air metal alloys supported by well qualified skilled workforce and engineering support for implementing design alterations, with state of the art CNC machining facility with varying test bench to ensure 100% defect free supply.

    Company is engaged in Manufacturing and supply of Stainless Steel, Non - Alloy Steel and alloy steel Castings. The present production capacity of foundry is 300 tons per month (3600 tones per annum). The company is connected with 1800KVA high tension power Connection.

    Company’s product process includes following :

    PATTERN DESIGNING -MAKING AND INSPECTION, SAND DRYING-MIXING AND TESTING , MOULD AND CORE MAKING, MOULD INSPECTION AND COATING , MOULD AND CORE ASSEMBLY, CASTINGS, MOULD KNOCK OUT as Melting shop is equipped with two medium frequency Induction furnaces of 400 & 1000 KW, with varying crucibles of 100kg, 400kg, 900kg, 1500kg and 3000kg. The company have bottom pouring as well lip pouring ladle which accommodate castings size of few kgs to 2200kgs. Company is having certifcates of ISO 9001:2008, PED, AD2000-WO, LLOYD’S, DNV-GL, NORSOK and IBR. These all certificates show the commitment toward Quality Castings and its manufacturing.

    Performance :

    In the year 2017-18, the production of the company was 1162 tonnes as compared to 914 tonnes in the previous year, (with installed capacity of over 3600 tonnes per annum, leaving enough room for further scalability of 3 times current production), giving capacity utilization of close to 32% only. The Industry has decent demand in the market and will be there in future too. Valve and other allied products are manufactured by using sand casting process by the company. There are also overseas demands of like products and the company is exporting the same. Export Sales is 49% of the total sales and rising, strong US Dollar will be positive for the company. The Company has strengthened its performance stability and now onward focusing to get boost up its growth track.

    In the slack market situation, with just 32% of capacity utilization, the performance of the company is very much encouraging, going forward the capacity utilization will increase for next few years giving continuous growth with appreciating US Dollar the financial performance is only going to improve henceforth.

    Valuation :

    This DEBT FREE company where promoters are slowly increasing their stake, having book value of Rs 120, and having a TTM sales of 38 crore and profit of 4.51 crore giving an EPS of 13 is traded at a PE of 10 times, while industry PE is 19. Rising export and strong dollar along with higher capacity utilization will boost the earnings of the company for the next few years. The company for June quarter, posted best OPM of 23% with ROCE of above 12% which will only increase going forward.

    The company can achieve for the FY 19 the sales of close to 45 crore and net profit of 6.5 to 7 crore , giving an EPS of 19 to 20 rupees per share which may further increase upto 26 to 27 rs in FY 20. The dividend of 15% declared by the company signals a better times ahead. The company is available at only 5 times one year forward earning which is attractive for investment for further long term appreciation.