Pennar Industries Limited

Pennar industries

I am very new in these forum. Posting first time. I have been studying this company from few days and wanted to update things here in these company.

1. They are second largest pre engineered building maker in India. With a big growth opportunity in the same, management is doing a greenfield and brownfield capex. They have a US presence in the same with only 1% market capture, they have large room to grow there too.
2. Their other three core sectors Precision tubes, Engineering services (highest margin), hydraulics, are high margin and growth products.
3. Management is focusing on improving PAT to 4% from current 1.5% by improving product mix by increasing sales of high margin products and introducing new high margin products.

Market cap: 1845 Cr
PE: 20.8
ROCE: 13.3%
Promoter holding: 39.75%
FII holding: 4.69%

8 Manufacturing Plants
1,500+ Engineered Products

Services

• Pre Engineered Buildings (fastest growing business) (core)
• Solar EPC

Products

1. Engineered Components Business (Core)

   1. Engineered Components Business
      1. Automotive Components, Braking and Suspension, Auto Electricals, Chassis & Body, etc.
      2. Hydraulics Cylinders
      3. Precision Sub Assembly Parts. Sheet metal components, assemblies, machined, welded & fabricated components.
      4. White good Components, Product for Rotary and compressor Shell, Tecumseh, Emerson Climate Tech India LTD, Venus Appliances.
      5. Solar Panels, Pennar Industries has set up a 2 Sqft state of the art photovoltaic solar module manufacturing facility, 250 MW Per annum

2. Steel Products & Profiles (capacity: 240,000 MT per annum) (Core)

   a. Cold Rolled Steel Strips (CRSS)

   b. Cold Roll Formed Sections(CRFS)

   1. Electrostatic Precipitators Electrodes (ESP), electrostatic air cleaner is a particulate collection device that removes particles from a flowing gas (such as air) using the force of an induced electrostatic charge.
   2. Purlins
   3. Roofing / Cladding Sheets
   4. Decking Profiles
   5. Metal Crash Barriers
   6. Sheet Piles
   7. Automobile Products, sheet metal products for the Automobile Industry

   

   Clients for Steel products

3. Precision Tubes (Production capacity: 60,000MT/Annum) (ERW – 5000 MT/month, CDW – 1800 MT/Month and Stainless Steel tube – 500 MT/month). (Core)

   1. ERW – 5000 MT/month
   2. CDW – 1800 MT/Month
   3. Air Pre-Heater
   4. Boiler
   5. Corten Steel
   6. Galvanized
   7. Stainless Steel Tubes – 500 MT/month

4. Railways

   1. Railway Wagons
   2. Passenger & Metro Coaches

5. Industrial Boilers & Heaters

   1. Turbosteam
   2. Ultrasteam
   3. Ecosteam
   4. Bi-drum
   5. Waste heat recovery boilers
   6. Thermic fluid heaters

6. Aerospace

   1. Aircraft Engine Fixtures Assembles
   2. Long bed Machined Components
   3. Exotic Material(Hard Metals) & Components

Their clients include