Shilp Gravures Ltd

Money Times - - Market Outlook | Techno Funda - By Nayan Pa­tel

(BSE Code: 513709) (CMP: Rs.109.10) (FV: Rs.10)

In­cor­po­rated in 1989, Ahmed­abad-based Shilp Gravures Ltd (SGL) man­u­fac­tures and sells en­graved cop­per rollers. It op­er­ates through two seg­ments: En­graved Cop­per Roller and

Wind Mill. It of­fers gravure cylin­ders as well as flexo plate pro­cess­ing, base shell, pre-press and em­boss­ing prod­ucts for use in flex­i­ble pack­ag­ing, anilox rollers, PVC (polyvinyl chlo­ride) floor­ing, dec­o­ra­tive lam­i­nates, spe­cial­ity coat­ings, ar­ti­fi­cial leather, gift wrap­pers, se­cu­rity and trans­fer print­ing, fine text, la­bel, ce­ramic anilox roller, em­boss­ing and flexo co­lage ap­pli­ca­tions. It also gen­er­ates en­ergy through wind mills.

SGL has an eq­uity cap­i­tal of Rs.6.15 crore sup­ported by re­serves of Rs.53.53 crore. The pro­mot­ers hold 60.52% of the eq­uity cap­i­tal, which leaves 39.48% stake with the in­vest­ing pub­lic. Dur­ing Q2FY19, SGL re­ported 8% higher PAT of Rs.1.21 crore on 20% higher sales of Rs.18.37 crore with an EPS of Rs.1.82. Dur­ing H1FY19, it re­ported 27% higher PAT of Rs.4.62 crore on 11% higher sales of Rs.37.96 crore with an EPS of Rs.7.35. It paid 15% div­i­dend for FY18. The man­age­ment will con­sider and ap­prove an in­terim div­i­dend in its Board Meet­ing sched­uled on 12 No­vem­ber 2018.

The stock trades at a P/E of just 7.05x and is avail­able at 39% dis­count to its 52-week high of Rs.179 recorded in April 2018. Based on its fi­nan­cial pa­ram­e­ters, the stock looks quite at­trac­tive at the cur­rent level. In­vestors can buy this stock with a stop loss of Rs.90. On the up­per side, it could zoom to Rs.155-180 in the medium-to-long term.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.