Simplex Castings
BSE: 513472 CMP: 83.00 BOOK VALUE : 106.00 EPS: 21.65 PE : 3.83
Simplex Casting Limited (SCL), part of 70 years old Simplex Group is a leading manufacturer of iron & steel castings in India. SCL is engaged in manufacturing of Heavy Engineering Castings in various grades for all industrial sectors like Steel plants, Power plants, Railways, Mines, Cement, Chemical, Oil, Defence, Sugar, Ship building etc. Its principle products include ingot moulds, alloy steel ingots, coco bogies, cansub bogies, blast furnace, pump casting etc. SCL has two major units-one heavy grey iron unit and other heavy steel casting foundry, both these manufacturing units are located in chhattisgarh.
Simplex Castings is one of the largest producer of Bogies frame in India supplying wide range of its products to Railways and it is one of the largest manufacturers of Zero Leakage Oven Doors. It has supplied these products to reputed units of Japan, Korea, Egypt and also to SAIL, Tata Steel Limited. SCL is the first Indian company to bring mini blast furnace concept in India and world leaders such as Nippon Steel use Simplex made Ladles.
The Company is now expanding in the field of fabrication, machining and complete equipment supply to ensure better profitability in coming years and it is regularly upgrading its manufacturing facilities. SCL has a very strong consumer base including Indian Railways, NTPC, SAIL, HEG, BHEL, Essar etc in domestic market and giants like Kawasaki, Hyundai in international market. Main positive for the company is the demand for the company`s products in railway sector is on good growth track and it is also tapping various new sectors by expanding both its customer and product base. Due to increasing level of consumption of cast iron & steel castings future outlook for the company looks pretty good.
Financials - Simplex Castings has a steady track record with consistent profits. For the financial year 2011 it recorded 25% growth in sales and 20% rise in profits. EPS stood at 21.57 and stock is trading at a P/E of just 3.9. Simplex deserves much better valuations considering their long standing operations and operational efficiency. buy on dips for long term gains.
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ReplyDeleteWe are providing Granite Surface Plates , Coordinate Measuring Machine, Cast Iron Surface Plates and Cast Iron Bench Centre