Shilp Gravures Ltd
(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.