Technocraft Industries (India) Ltd. share price target

Call Closure: The net profit decline by 33.9% in Q1FY18. TIIL is unable to pass on the increase in cost to its customers.The company is expanding into textile business, moving away from core business of drum closure and scaffolding business. Hence, we close the call.

Technocraft Industries (India) Ltd (TIIL)'s revenues for Q4FY17 increased 9.2% Y-o-Y to Rs 231 Cr, while earnings (standalone) were up by just 1.5% Y-o-Y to Rs 18.8 Cr due to forex loss.

Technocraft Industries (India) Ltd (TIIL)'s revenues for Q3FY17 increased 11.3% Y-o-Y to Rs 190 Cr, while earnings (standalone) were down 16.9% Y-o-Y to Rs 19.8 Cr due to decline in EBIDTA margin.

Technocraft Industries (India) Ltd (TIIL)'s revenues and earnings (standalone) for Q2FY17 increased 18.8% Y-o-Y and 29.3% Y-o-Y to Rs 203 Cr and Rs 28 Cr respectively. Margin for Q2FY17 contracted 1.1 percentage points to 18.8%on account of higher trading purchases. Revenues from scaffoldings busi..

Corporate Structure is Restructured; Overall Positive Performance During H1FY17: approved demerger of manufacturing and financial services businesses into two different entities. The carved out manufacturing undertakings shall be brought under TI FinancialHoldings ltd (TIFHL) and residual financial services businesses to remain under TIIL. The ratio for demerger under consideration stands at one share of TIFHL of face value of Rs.1 for one share held in TIIL of Rs.2 each. TIILs face value post demerger shall stand reduced to Rs.1 each and the holding pattern of TIFHL shall be a mirror image of TIIL

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...