SINTEX INDUSTRIES LTD

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 Industries 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 Industries 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.

Sintex Industries Ltd is organized into two business segments namely, textile and plastics. In the textile division, Sintex Industries manufactures high-value, yarn-dyed structured fabrics, corduroy and items relating to home textiles. In the plastic division , Sintex Industries 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. Sintex Industries Ltd 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.

Sintex Industries 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.

 
Share Holding Pattern

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

 
Financial Details
  • 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

 
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
Sintex Industries Ltd Dividend History
 
Index and Company Price Movement Comparison
Sintex Industries Ltd Index and Company Price Moviement
 
Company Forecast
Sintex Industries Ltd Company Forecast

 

Technical Indicators

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

Important Ratios
  • 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

Simple Moving Average

Days

BSE

NSE

30

105.33

105.42

50

100.82

100.85

150

90.20

90.20

200

88.20

88.22

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

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