I think there is no direct competition between GCL and TPL Plastech, as GCL currently makes only steel drums and composite drums while TPL Plastech makes only plastic drums and plastic IBC. Both steel drums and plastic drums/IBC have their own benefits and limitations. Some industry prefers steel drums and some prefer plastic drums. The demand of drums will remain for decades whether it is made from metal or plastic. TPL Plastech is specialist in making plastic drums, so it commences making plastic IBC because of increasing demand. While GCL is specialist in making steel drums, GCL can make Steel IBC, as IBC can also be made from steel.
I chose to invest in GCL because of better financial parameters in comparison to TPL Plastech like ROCE, ROE, Interest coverage ratio, Fixed assets to Turnover ratio, Stock Turnover ratio, cagr growth in sales/ net profit in last 10 year/ 5 year/3 year etc.alongwith cheap valuations.
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