I have a basic question. Is Tinplate a structural play or cyclical (because of its dependence on steel cycle)? Also, given its low PE and the following potential tailwinds (listed below), is this a rerating candidate?
• Its plans to increase capacity by additional 3,00,000 MTPA
• Management’s bullish outlook on future demand (per capital consumption of Tinplate in India at 0.55 kg/ capita is substantially lower when compared with other developed countries)
• Tapping into additional markets like growth in tinplate sales to Paints, Aerosol and Processed food end use
Reduction in cheaper non-prime tinplate imports by 33% (138 KT in FY 2021-22 vs 205 KT in FY 2020-21) opened prospects for your Company to consolidate its market share and improve margins
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