Company Details

The Sintex group is one of the leading providers of plastics and niche textile-related

products in India. With global footprints spanning 9 countries, Sintex has a strong presence in

the European, American, African, and Asian markets including countries like France, Germany

and USA.

Established in India in 1931, Sintex has a proven track record of pio neering innovative concepts

in plastics and textile sectors in India and an uninterrupted 82 years of dividend payment to its

shareholders.

The company is organized into two business segments namely, textile and plastics. In the

textile division, the company manufactures high-value, yarn-dyed structured fabrics, corduroy

and items relating to home textiles. In the plastic division , the company manufactures the

following: storage solutions for water, oil and fuel; prefabricated structures, monolithic

structures, industrial custom moulded products, consumer custom moulded products and

interiors products. The company is having eight manufacturing facilities located at Kalol,

Kolkata, Daman, Bangalore, Nagpur, Baddi, Salem and Bhachau in India. The company is

headquartered in Kalol in Gujarat with 13 branch offices across India.

The company has reported a consolidated sales of Rs 1,826.03 crore and a Net Profit of Rs

161.09 crore for the quarter ended Dec 2014.

Category No. of Shares Percentage

Promoters 304,514,362 31.35

Financial Institutions 213,958,910 22.03

General Public 207,600,159 21.38

Foreign Institutions 168,689,185 17.37

NBFC and Mutual Funds 32,769,719 3.37

Other Companies 26,808,106 2.76

Central Government 121,659 0.01

Foreign OCB 5,625 0.00

Market Cap (Rs Cr) 4123.76

Company P/E 9.15

Industry P/E 17.05

Book Value (Rs) 77.67

Dividend (%) 70%

EPS (TTM) 11.58

Dividend Yield (%) 0.66%

Face Value (Rs) -1

Share Holding Pattern Financial Details

Industry Details

Ever since 1957, the Plastics Industry in India has made significant achievements as it made a modest but

promising beginning by commencing production of Polystyrene. The Phenomenal developments in the plastic

machinery sector is coupled with the developments in the petrochemical sector, both of which support the

plastic processing sector. Plastic material is gaining notable importance in different spheres of activity and the

per capita consumption is increasing at a fast pace. Continuous advancements and developments in Plastic

technology, processing machineries, expertise, and cost effective manufacturing is fast replacing the typical

materials. On the basis of value added share, the Indian Plastic industry is about 0.5% of India's GDP. The

export of plastic products also yields about 1% of the country's exports. The sector has a large presence of

small scale companies in the industry, which account for more than 50% turnover of the industry and provides

employment to an estimated 0.4 million people in the country. Approximately Rs.100 billion are invested in the

form of fixed assets in the plastic processing industry.

Typically, in an emerging market, demand growth for plastics is 2 to 2.5 times the GDP growth. Sadly this is

not the case in India where the growth at times has been lower than the GDP growth. The per capita

consumption of plastics in India at 5kg is much lower than that of China which averages 25kg. But India could

see very soon improvement in the production of Plastic. India today represents range of highly promising

opportunities for growth of plastics producers worldwide. The fragmented plastics industry in India is beginning

to consolidate, governmental regulations and trade barriers are coming down due to India's recent admission

to the WTO, and some large North American plastics manufacturers have already begun doing business here.

The Indian Plastic industry is at the verge of high growth rate over about 10%-12% which is contributed by

high growth rates, in turn, from the end-user industries. This trend has mainly been driving the automotive

sector, since the economy is already showing signs of recovery from the downturn.As the Plastic industry is

heavily dependent on reals estate, packaging and automotive sector, launching of new cars in the small

segments are expected to drive the demand for plastics.

Balance Sheet

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 31.12 31.12 27.11 27.11 27.10

Equity Share Capital 31.12 31.12 27.11 27.11 27.10

Share Application Money 28.31 28.31 0.00 0.00 0.00

Reserves 2,982.70 2,739.91 2,306.76 2,145.31 1,855.02

Networth 3,042.13 2,799.34 2,333.87 2,172.42 1,882.12

Secured Loans 2,373.84 1,612.21 1,415.42 1,391.35 1,058.72

Unsecured Loans 1,032.17 972.69 1,251.02 1,104.63 1,115.65

Total Debt 3,406.01 2,584.90 2,666.44 2,495.98 2,174.37

Total Liabilities 6,448.14 5,384.24 5,000.31 4,668.40 4,056.49

Application Of Funds

Gross Block 3,474.21 2,800.71 2,584.09 2,313.28 1,773.64

Less: Accum. Depreciation 808.72 693.67 574.02 524.73 437.05

Net Block 2,665.49 2,107.04 2,010.07 1,788.55 1,336.59

Capital Work in Progress 84.50 207.13 75.81 121.06 136.75

Investments 1,029.24 966.55 874.23 1,123.64 807.94

Inventories 168.28 200.97 175.77 174.69 168.70

Sundry Debtors 1,299.64 1,236.63 1,146.07 838.12 677.06

Cash and Bank Balance 102.70 355.19 605.63 45.73 77.36

Total Current Assets 1,570.62 1,792.79 1,927.47 1,058.54 923.12

Loans and Advances 2,031.73 1,085.21 1,022.11 530.34 794.13

Fixed Deposits 0.00 0.00 0.00 854.71 737.68

Total CA, Loans & Advances 3,602.35 2,878.00 2,949.58 2,443.59 2,454.93

Current Liabilities 890.18 732.44 612.35 510.90 385.65

Provisions 43.26 42.04 297.03 297.54 294.07

Total CL & Provisions 933.44 774.48 909.38 808.44 679.72

Net Current Assets 2,668.91 2,103.52 2,040.20 1,635.15 1,775.21

Total Assets 6,448.14 5,384.24 5,000.31 4,668.40 4,056.49

Contingent Liabilities 1,606.71 173.59 88.99 59.94 216.93

Book Value (Rs) 96.25 88.50 85.49 79.58 137.89

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 3,233.12 2,969.26 2,562.59 2,718.74 2,103.56

Excise Duty 0.00 0.00 0.00 102.88 93.05

Net Sales 3,233.12 2,969.26 2,562.59 2,615.86 2,010.51

Other Income 97.81 -34.54 14.91 60.01 96.86

Stock Adjustments -23.37 28.85 4.32 -5.36 -13.97

Total Income 3,307.56 2,963.57 2,581.82 2,670.51 2,093.40

Expenditure

Raw Materials 2,188.14 2,096.10 1,763.35 1,764.22 1,371.44

Power & Fuel Cost 74.96 93.82 87.27 68.18 59.86

Employee Cost 112.99 106.40 94.46 85.62 74.97

Selling and Admin Expenses 0.00 0.00 0.00 55.12 54.08

Miscellaneous Expenses 117.76 113.53 104.71 42.52 54.34

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 2,493.85 2,409.85 2,049.79 2,015.75 1,616.45

Operating Profit 715.90 588.26 517.12 594.75 380.09

PBDIT 813.71 553.72 532.03 654.76 476.95

Interest 237.38 118.09 110.49 86.82 51.32

PBDT 576.33 435.63 421.54 567.94 425.63

Depreciation 138.33 123.18 98.05 89.25 84.03

Profit Before Tax 438.00 312.45 323.49 478.69 341.43

PBT (Post Extra-ord Items) 438.00 312.45 323.49 471.63 334.67

Tax 102.94 43.26 93.79 114.07 60.97

Reported Net Profit 335.06 269.19 229.70 357.56 273.70

Total Value Addition 305.71 313.75 286.44 251.53 245.01

Equity Dividend 21.92 21.92 17.74 17.74 16.38

Corporate Dividend Tax 3.72 3.56 2.88 2.84 2.67

Per share data (annualised)

Shares in issue (lakhs) 3,131.10 3,131.10 2,729.91 2,729.91 1,364.95

Earning Per Share (Rs) 10.70 8.60 8.41 13.10 20.05

Equity Dividend (%) 70.00 70.00 65.00 65.00 60.00

Dividend History

Index and Company Price Movement Comparison

Company Forecast

Symbol Value Action

RSI(14) 62.213 Buy

STOCH(9,6) 69.965 Buy

STOCHRSI(14) 89.825 Overbought

MACD(12,26) 7.000 Buy

ADX(14) 44.590 Buy

Williams %R -16.134 Overbought

CCI(14) 108.9592 Buy

ATR(14) 18.8429 High Volatility

Highs/Lows(14) 20.8893 Buy

Ultimate Oscillator 54.622 Buy

ROC 210.132 Buy

Bull/Bear Power(13) 54.9540 Buy

Technical Indicators

PBIT 17.25 v/s 15.37

RoCE 10.72 v/s 9.67

RoE 11.76 v/s 10.67

Net Profit Margin 10.01 v/s 8.89

Return on net worth 11.11 v/s 9.71

D/E Ratio 1.13 v/s 0.93

Interest Cover 2.91 v/s 4.41

Current Ratio 1.96 v/s 1.83

Reserves 2982.70 cr v/s 2739.91 cr

PAT 335.06 cr v/s 269.19 cr

Total assets 6448.14 cr v/s 5384.24 cr

Net sales 3233.12 cr v/s 2969.26 cr

Book Value 96.25 v/s 88.50

Days BSE NSE

30 105.33 105.42

50 100.82 100.85

150 90.20 90.20

200 88.20 88.22

Important Ratios Simple Moving Average

Recommendations

Buy Sintex Industries Ltd. at current or

lower market levels

Reasons for the recommendations are :

Sound financial position of the company.

Availability of adequate manufacturing facility to meet demands.

Capex is not required in near term.

Releasing of pending funds by government and its efforts on small housing schemes will increase cash flow and revenue.

Huge difference in per capita expenditure on plastic by Indian population when compared with rest of the world.

Growth forecast of real estate, automobile and textile industry will add to the growth of the company.

Well diversified product mix will help to tap the product mix.

Improved QoQ performance of sales.