MULTIBAGGER ACRYSIL INDIA

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

  1. adijsg

    adijsg Member

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    Buy between 500-550 level for a target of 1000 within 1 year

    what’s unique in sinks? A mere sink company
    One may think that what’s special in this company
    bit different. The uniqueness of this company lies in its products, its business model. Talking
    about products- its products constitute of about 75% quartz
    computerized controlled polymerization casting process. This gives the product a silky
    touch, scratch less body, designed and colo
    sinks have high demand from the home owners, designers who want to give their kitchen a
    different meaning in terms of qualit

    MULTIBAGGER STOCK RECOMMENDATION
    ACRYSIL INDIALTD.
    Granite sinks are manufactured using a mix of granite stone dust and acrylic
    esins. As these are manufactured under high pressure so it is highly durable and can
    withstand rough handling also. The best part is that it comes in wide range of colours,
    es, styles and size. The market size of granite sinks is very large dominated b
    MNC’s. The chosen company is one amongst them.
    The manufacturing process of stainless steel sink is quite easy which
    involves placing the stainless steel over a die to get the desired shape. It is preferred
    because of affordability, durability, versatility and easy maintenance. The market of
    steel is highly fragmented, both in domestic and global market. The chosen
    company has managed in creating a niche in this segment also.
    Overall kitchen sink industry is expected to continue its growth. Major growth carriers are
    ncrease in the number of nuclear families, increase in housing projects
    kitchen which is made up of several modules or units
    About the Company – Acrysil India Ltd
    1987 and has it’s headquarter in Bhavnagar, Gujarat, India.
    Company is a business of manufacturing and selling kitchen sinks. Its product portfolio
    includes granite sinks, stainless steel sinks, food waste disposer, faucets among others.
    sinks? A mere sink company- why Invest in it?
    One may think that what’s special in this company- just a sink manufacturer. Well, story is
    bit different. The uniqueness of this company lies in its products, its business model. Talking
    s constitute of about 75% quartz material and is made by a
    computerized controlled polymerization casting process. This gives the product a silky
    ch less body, designed and colorful texture and a rock solid material. And these
    high demand from the home owners, designers who want to give their kitchen a
    quality, design and luxury.
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Agreed. Acrysil is a niche product which will benefit from the urbanisation boom. It is not a cheap stock (P/E of 26x). But it is still a micro-cap (Rs. 238 crore) and enjoys a good brand image. It has the opportunity to scale it up in a big way. I have put the stock in my watch list and will monitor it closely for the next couple of quarters before taking a decision.
     
  3. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

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    There is a research report by Katalyst Wealth which explains the nitty gritty of the stock. Though the report is old (Sept 2011), the business model hasn't changed much and the basics remain the same.

    https://www.katalystwealth.com/alphaalpha-plus-stock-recommendation-for-sep11
     
  4. adijsg

    adijsg Member

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    PE of 26 x is not that costly look at the valuations of cera, hsil, la opala...
     
  5. dajinkya

    dajinkya New Member

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    It seems bit expensive stock .. PEG is 11% !!!
     
  6. Nandamuri1989

    Nandamuri1989 New Member

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    Hello friends,

    Have anybody calculated the intrinsic value of this stock ?

    My calculations are showing, it's cheap. I am sure, it's not.
    I am not able to figure out, where I am wrong ?
    Can somebody help me out please...?
     
  7. abhay6605

    abhay6605 Member

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    agreed with CloudRazer
     
  8. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    I think the way to evaluate these stocks is by their market cap and potential to grow. Acrysil has a market cap of only Rs. 262 crore which is peanuts in the context of our Country. So, the question to be asked is whether they have the potential to scale it up, what is the demand potential, the uniqueness of the product, the brand strength, competition etc, etc.
     
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