Technocraft Industries (India) Ltd. (TIIL) is a diversified industrial company, holding a market leadership position in the global Steel Drum Closures, Scaffolding and Formworks industries. TIIL is the world's second largest manufacturer of Steel Drum Closures including Tite Seal Flanges & Plugs, Tite Seal Gaskets, Tite Seal Leak Locks Plugs, Octagon base Drum Flanges & Auto Closure Systems, with a market share of c.36% in FY13. Through aggressive marketing and capacity expansion in the fast growing Chinese market, TIIL's market share is expected to increase to c.38% by 2016. In Building Materials, the company primarily manufactures Industrial Scaffolding & Formworks, wherein TIIL is aggressively...
Lean and clean business model: NBCC occupies a unique position as being one of the most efficient PSUs with a lean business model that has enabled it ensure scalability without adding on the burden of debt. Backed by a large and rising Order Book, there is ample revenue visibility going forward for at least 4 years. Subcontracting majority of the work helps it remain asset light. In its PMC business, NBCC collects significant amount of its payment upfront, thereby maintaining a...
Recovery in the international CV cycle: The export markets both in North America & Europe had a strong end to CY13 with the Heavy Truck market in both geographies witnessing volume growth. Robustness in NA Heavy truck segment which is expected to continue driven by strong US economy & aging of the fleet. According to the management NA Heavy Truck market is expected to grow by 10 -15% in CY14. Volumes in the European markets were driven by pre-buy in advance of...
T&D; investments to gather speed: The last couple of years had witnessed a slowdown in ordering activity from PGCIL, resulting in the underutilization of capacity and an increase in pricing pressure. However, with the change in government and its focus on improving power availability in the country we believe ordering activity to pick up going forward. Transformer capacity utilization has been hovering between 60-70% in the last three years. With increase in demand we expect competitive intensity to decrease and realizations to improve. CG has been the market leader in the higher capacity 765 KV transformer segment with a market share of 32% in FY14. Turnaround in overseas business: Revenues in the overseas subsidiaries increased 20% yoy in...
Enhancing capacity to become the largest player globally: AIAE currently has a capacity of 260,000 MT including brownfield capacity ramp up of 60,000MT commissioned in April 2014. The company intends to increase its capacity to 440,000 MT through greenfield expansion of 180,000 MT in Gujarat by FY16. The expansion would be done in two phases i.e. one by Mar-15 and second by Oct-15. This would make it the largest HCMI player in the world overtaking Belgium based Magotteaux (current capacity of 350,000 MT). The company expects capex of ~Rs 650 cr for the...
Since our first coverage of VA Tech Wabag in November 2013 at Rs.487, VATW moved to a high Rs.1944, a growth of almost 300% in less than 18 months. After a bonus of 1:1, the recent correction and subsequent consolidation the stock trades at 22.4x its FY17E earnings...
RHFL delivered another set of strong numbers in Q4FY14. Net interest income went up by 37% yoy to Rs 53.9 cr driven by a robust 32% yoy growth in loan book. Sequentially NII grew by 14% as interest expenses grew by a moderate 7% against 9.6% growth in interest income. NIMs were steady at 4.7% as share of LAP loans increased to 18.7% of the total loan book. PAT grew by modest 14% yoy as against 50% growth for 9MFY14 on account of higher provisioning made by the company resulting in shoring up of coverage ratio from 37% to...
GATI, one India's largest logistics player, has reported an excellent set of numbers in Q3FY2014, with strong growth in profitability across its various verticals. Gati is currently among the top 5 in the E-commerce logistics business. But with the vertical expected to grow at a CAGR of 100% over the next few years, the company could well climb up in its rankings. With the sale of one of its ships nearing completion, the company is well on track to exit from the loss-making shipping business. The increased client accretion resulting from the JV synergies and management's commitment to maintaining debt below Rs.5 bn, we believe Gati is a strong opportunity unfolding in the Indian logistics landscape....
Greenply Industries Ltd (GIL), is one of India's largest interior infrastructure company. Incorporated in the year 1990, at present it has got 7 state of the art manufacturing facilities producing world class interior products. It possesses a strong, well developed and...
REPCO Home Finance Ltd. (RHFL) has emerged as one of the most promising players within a short span of time in the housing finance sector. Having created a strong niche for itself in the under-serviced and under-penetrated sections of Tamil Nadu and other Southern states, it has now made forays into the West and East. With a fine mix of salaried and self-employed customers (54%), supported by a strong credit appraisal process, RHFL has wedged itself in a sweet spot of higher yields (NIMs of 4% plus) and superior asset quality. RHFL's low Average Ticket Size (Rs.10.4 lk) and focus on the Tier-II / Tier-III cities, has enabled the company to maintain a low cost incidence (Cost-to-Income Ratio of 17.6). The Owned...
