Hindustan Tin Works Ltd
(BSE Code: 530315) (CMP: Rs.68.45) (FV: Rs.10)
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.