Equity Share Capital – 9.56 Cr
No. of equity shares – 95,61,500
Promoter holding – 85.10%
Institutions – 3.89%
General Public – 11.01%
Market Cap – Rs.90 Cr
Book Value – Rs.61
Reserves – Rs.48 Cr
EPS – Rs.20.70
52 week high/low – Rs.105 / Rs.21.05
CMP – Rs.94
Sahyadri Industries Limited is 60+ years old company based out of Pune, engages in the production of cement roofing products in India. The company primarily offers fiber cement sheets, which are used for roofing of industrial sheds, warehouses, and residential houses. Its products also include corrugated cement sheets and roofing accessories, main doors, and spectra tiles. The company offers its products under the ‘Swastik’ brand name.
Sahyadri Industries, (SIL) has further planned to invest in additional 6 wind mill, 2 in the state of TamilNadu and 4 in Rajasthan. The wind power generation in TN will be consumed by SIL’s sheet manufacturing plant at Perundurai and power generation in Rajasthan will be sold to State Utility. In the process of wind power generation, SIL also generates carbon emission reduction which may be negotiated for price in international market under Clean Development Mechanism, subject to completing formalities and obtaining certificate of carbon emission reduction as per Kyoto Protocol.
SIL has posted very good numbers for H1FY10. Its total income was Rs.153 Cr (Rs.139 Cr) & Net profit of Rs.17.5 Cr (Rs.12.11 Cr). Thus it posted an EPS of Rs.18.30 Vs Rs.20.69 for the full year FY09. Hence SIL is most likely to post an EPS of Rs.33 in FY10, which would further go up to Rs.38 in FY11. So, at CMP of Rs.94, the share is trading at a P/E of 2.8x on FY10E and 2.4x on FY11E. Apart from this, its Net profit margin has improved to 11% as compared to that of 9% last year for the first half of financial year.
SIL has been forming higher highs and higher lows. The resistance on the upside is at Rs.105. A breach of this level should take the stock price to Rs.130. One should BUY this stock with a target of Rs.125 which is around its life time high. For longer term it may offer wonderful returns. However, its slow & steady kind of a stock & will require lots of patience to hold it.
Last 4 years’ performance:
Mar '06; Mar '07; Mar '08; Mar '09
(Rs. In Cr)
Total Income - 113.49; 160.75; 228.90; 253.38
Operating Profit - 25.35; 22.66; 30.47; 40.92
PBDT - 21.96; 15.02; 20.31; 33.75
PBT - 17.22; 6.72; 9.90; 25.77
Net Profit - 10.44; 3.84; 6.71; 19.79
Reserves - 22.98; 25.69; 33.09; 48.77
EPS (Rs) - 10.91; 4.01; 7.02; 20.70
Dividend/Share (Rs) - 2.00; 1.00; 1.00; 2.00
Operating Profit/ Share (Rs) - 27.75; 24.97; 32.31; 43.03
Book Value (Rs) - 34.03; 36.87; 42.65; 61.00
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