We are glad to inform you that our Hidden Gem stock of Jan'15 - Plastiblends India Ltd (BSE Code: 523648, NSE Code: PLASTIBLEN) has given absolute returns of more than 100% to our Hidden Gems members within period of 12 months. Our team suggested Buy on Plastiblends India Ltd at price of Rs. 236.70 on 31 Jan'15 with a target price of Rs. 480. Target is already achieved, Plastiblends India stock made its 52 week high of Rs. 523.80 on 5th Jan'16 and currently trading at Rs. 465 giving as on date returns of 96% to our Hidden Gems members.
Company has declared its Sept'15 quarter results on 06th Nov'15, net profit of Plastiblends India declined 0.56% to Rs 8.85 crore as against Rs 8.90 crore during the previous quarter ended Sept 2014. Sales declined 6.25% to Rs 125.08 crore in the quarter ended Sept 2015 as against Rs 133.42 crore during the previous quarter ended Sept 2014.
Company has delivered muted top line and bottom line growth in last quarter. However, growth prospects of the company look bright. Company has good consistent profit growth of 23.7% over 5 years.
The company is going through a Capex programme for setting up a manufacturing plant in Surat with capacity of 30,000 tonnes per annum (current capacity ~75,000 TPA) and intends to fund the same largely through internal accruals.
Company is virtually debt free and currently trading at trailing PE multiple of 17. Dividend yield at CMP is 1.2%. As valuations look reasonable, we suggest our members to continue to hold the stock.
1. Company Background:
- Plastiblends India
- Clariant Chemicals
- Poddar Pigments
2. Recent Developments: (as on 31 Jan'15)
i) Plastiblends to double capacity by 2015 - Dec'13
Plastiblends India Ltd will double its manufacturing capacity by this year. Along with some nominal expansions that will take place at its existing plants that are situated in Daman in Western India and Roorkee, Uttarakhand, the company is setting up a new manufacturing unit.
- 70% at current market price of 236.70
- 30% at price range of 190-210 (in case of correction in stock price in near term)
To Read / Download Saral Gyan Hidden Gem - Jan'15 Research Report - Click Here
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Team - Saral Gyan.