Hi,

I am new to value investing.

I have been observing Emmbi industries for the last 2 yrears.

Emmbi Industries Limited is an India company, which is involved in manufacturing and trading of plastics products. The company has a market cap of INR1.45 billion. The Firm makes and trades high-density polyethylene and polypropylene -woven polymer products and raffia products. It has a P/E ratio of 17.5 . It makes and sells flexible intermediate bulk containers (FIBC) and woven sacks, and various woven polymer products, such as container liners, protective irrigation system, canal liners, flexi tanks and car covers.

Below are some of my observations :

Sales growth for last 5 years : 17%

NP growth for last 5 years >= 14 %

Tax payout for last 5 years >= 16 %

ROCE AND ROE increased for 9.xx to 12.xx and 11.xx resp.
NPM % has been consistent at 3.xx % . [ which looks decent for a commodity business]

Debt to Equity ratio at 1.2 looks decent after a decent amt pumped towards capex. during the last 5 yrs.

Current P/E :17.3

With my limited knowledge, the business looks good and headed north [ at 15 – 20 % cagr] in the near future unless the management does something terribly stupid.

Mgmt:

Looks decent till date.
Noting terrible reported till date about management.
The company is run by makrand [ iit – mit] and rinku appalwar [ husband and wife ]
1st generation entrepreneurs.

Anyone else also invested EMMBI ?
Pls add on whatever information that you can get.

http://www.wovensackindia.com/

Disc: Invested from RS. 8 and adding via Stock SIP.