Dutron Polymers Ltd (BSE:517437) CMP 98.00

Dutron Polymers was founded in 1962 and has been continuously growing since then. Dutron is pioneer of PVC hose pipes in India. Beginning with a modest plastic pipe manufacturer, Dutron went on to procure world specialist Kanaflex PVC hose pipe manufacturing know-how from Totaku Industries Inc., Japan; worlds largest leading manufacturer of Kanaflex Suction Hose. Dutron Kanaflex Hose, with its superior quality gained market leadership in India.

Later on, during 1980s, Dutron started manufacturing of PVC Braided hoses, Flat Delivery Hoses, Corrugated pipes and plastic sheets. And further ahead, product portfolio expanded with international standard HDPE/MDPE/PP pipe systems, uPVC pipes and fittings during 1990s. Today, Dutron is the largest manufacturer of PVC hoses and one of the largest manufacturers of plastic pipe systems in India.

Today, having decades of experience in Plastic Processing, Dutron Group has attained An Image of a Strong, Top Class Quality Manufacturer of the Plastic Pipes & Fittings today. Dutron is now one of the leading Plastic Pipe Systems Supplier in India. It has a BSE Listed Public Company since 1994.

Dutron Group’s manufacturing plants are located at 3 places in India’s industrial state of Gujarat: Vatva in Ahmedabad, Bharuch and the state-of-the-art plant at Kheda. Dutron offers plastic products for all types of piping applications in several markets:

Civil–Irrigation,Drainage,Sewer,Gardening
Industries–Chemicals,Effluents,Air,Food
Utilities–Water,Gas,CableDucting
Building – Soil, Waste & Rain Water (SWR), Plumbing

Branded Products are :
»DUTRONHDPE
»DUTRON KANAFLEX
»DUTRON NYLON BRADED HOSE
»DUTRON CPVC PLUMBING
» DUTRON UPVC-PVC
» DUTRON WATER TANKS (From 200 to 5000 Litres)

At Dutron, where quality is an attitude, complete quality assurance procedure ensures adherence to perfection in standards and consistency. Dutron’s presence in international markets of many Gulf countries including UAE, Saudi Arabia, Muscat, Qatar, Bahrain, Kuwait and also in Indonesia, Sri Lanka and several countries in Africa speaks of its level of product quality and services. Dutron’s dealers in India are spread across almost every town through out the country.

Dutron has received several export awards from PLEXCONCIL of India in the past. Dutron has achieved ISO 9001:2008 certification and is BSE listed public company since 1994.

This more than 50 year old company with consistant dividend paying for the last five years is trading at TTM EPS of Rs 5 per share at 19 PE (Average Indutry PE 40), management has increased the stake from 62% in March 2014 to 68.5% in June 2016. Company is having well accepted branded product, the demand for which will going to increase going forward in Agriculture, Chemical and other Industries. Companys TTM sales is 135 Cr, while market cap is just 55 crore. Company is getting benefit of falling crude price which will continue going forward.

With expected EPS of Rs 8 for FY 17, the stock is trading at just 12 times forward PE (Average Indutry PE 40), looking at the pedigree, growth and product profile of the company it should trade at conservative PE of 18 to 20 the fair value comes to Rs 150. From 1st October 2016, price band will be revised on BSE.

​

 

Revised Circuit for Dutron Polymer :
Daily 102.9
Weekly 117.6
Monthly 127.4
Quarterly 181.3
Yearly 239.1