Hin­dus­tan Tin Works Ltd

(BSE Code: 530315) (CMP: Rs.68.45) (FV: Rs.10)

Money Times - - Techno Funda - By Nayan Pa­tel

In­cor­po­rated in 1958, New Delhi based Hin­dus­tan Tin Works Ltd (HTWL) is a lead­ing man­u­fac­turer and ex­porter of high per­for­mance cans, printed sheets and re­lated com­po­nents to con­sumer mar­ket­ing com­pa­nies. Its mar­quee clients in­clude Asian Paints, Amul, Bikan­er­wala, DS Group, Del Monte, Danone In­dia, Haldiram, Nes­tle In­dia, Patan­jali, Reckitt Benckiser, etc. It sup­plies a di­verse range of aerosol cans, food cans, bev­er­age cans, baby food cans and can com­po­nents to a wide va­ri­ety of food, bev­er­ages, baby food, health, beauty and lux­ury com­pa­nies across 30+ coun­tries in Africa, Aus­tralia, Eu­rope, Mid­dle East, New Zealand, USA and parts of South East Asia. Its fully in­te­grated and au­to­mated man­u­fac­tur­ing fa­cil­ity is sup­ported by high-speed au­to­matic print­ing and lac­quer­ing ma­chines. Its 10 acre man­u­fac­tur­ing fa­cil­ity in Murthal houses state-of-the-art ma­chines im­ported from coun­tries like UK, Ger­many, USA, Tai­wan, Italy, Switzer­land, etc.

HTWL has an eq­uity cap­i­tal of Rs.10.4 crore sup­ported by huge re­serves of Rs.127.41 crore. The pro­mot­ers hold 40.46% of the eq­uity cap­i­tal, which leaves 59.54% stake with the in­vest­ing pub­lic. Gen­eral In­sur­ance Cor­po­ra­tion of In­dia holds 4.81%, United In­dia In­sur­ance Com­pany holds 5.02% and ace in­vestor Subra­ma­nian P holds 4.09% stake in the com­pany. Its share book value works out to Rs.132.5 and P/BV is at­trac­tive at 0.5x. Dur­ing Q2FY19, HTWL re­ported 16% higher PAT of Rs.2.31 crore on 20% higher sales of Rs.88.5 crore and an EPS of Rs.2.25.

Dur­ing H1FY19, it re­ported 37% higher PAT of Rs.4.65 crore on higher sales of Rs.179.4 crore and an EPS of Rs.4.54. It paid 10% div­i­dend for FY18. Cur­rently, the stock trades at a P/E of just 6.5x and looks at­trac­tive for in­vest­ment based on its fi­nan­cial pa­ram­e­ters. In­vestors can ac­cu­mu­late the stock with a stop loss of Rs.60. On the up­per side, it could zoom to Rs.100-110 in the medium-to-long term. The stock’s all-time high is Rs.150.

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