Sahyadri Ind
.BSE Code : 532841Rs. 67.35
Pune based Sahyadri Industries Ltd is engaged in production and marketing of Asbestos Sheets. Having
4 factories, SIL is the third largest manufacturer (after Hyderabad Ind and Visaka Ind) of Asbestos sheets in the country. Asbestos sheets are used mainly for roofing of industrial galas, houses in rural areas etc. Main raw material for Asbestos sheets are cement, flyash, pulp and imported fibre. In 2010-11, SIL has increased its capacity from 4.43 lac tonnes to 5.27 lac tonnes. SIL also has windpower division. It had 16 MW Wind energy which was increased to 18.40 in FY11. Last year, its share price had touched Rs
190/, an all time high. At current price of Rs 51, scrip looks to have bottomed out and market cap ofRs 52 crores looks very attractive considering FY12E sales of 380 crores.ForFY11, SIL achieved sales of Rs 309 crores with profit after tax of 13.47 crores, translating into Eps of Rs 14.09. Cash Eps stood at Rs 26.37. It paid Rs 2 per share as dividend. Scrip is trading at 3.62xFY11 Eps and 1.95xFY11 Cash Eps. Book Value became Rs 103/ as on 31st March 2011 and scrip available at 0.50xFY11 Book Value SIL's 4th plant had started commercial production in March 2011. Impact of same was felt from Q1 onwards wherein its sales have increased by 25% to 125 crores. Now, SIL is setting up its 5th plant in Vijaywada and also increasing wind energy capacity
to 23.20 MW. Company is also in the process of registering for Carbon Credits.4 factories, SIL is the third largest manufacturer (after Hyderabad Ind and Visaka Ind) of Asbestos sheets in the country. Asbestos sheets are used mainly for roofing of industrial galas, houses in rural areas etc. Main raw material for Asbestos sheets are cement, flyash, pulp and imported fibre. In 2010-11, SIL has increased its capacity from 4.43 lac tonnes to 5.27 lac tonnes. SIL also has windpower division. It had 16 MW Wind energy which was increased to 18.40 in FY11. Last year, its share price had touched Rs
190/, an all time high. At current price of Rs 51, scrip looks to have bottomed out and market cap ofRs 52 crores looks very attractive considering FY12E sales of 380 crores.ForFY11, SIL achieved sales of Rs 309 crores with profit after tax of 13.47 crores, translating into Eps of Rs 14.09. Cash Eps stood at Rs 26.37. It paid Rs 2 per share as dividend. Scrip is trading at 3.62xFY11 Eps and 1.95xFY11 Cash Eps. Book Value became Rs 103/ as on 31st March 2011 and scrip available at 0.50xFY11 Book Value SIL's 4th plant had started commercial production in March 2011. Impact of same was felt from Q1 onwards wherein its sales have increased by 25% to 125 crores. Now, SIL is setting up its 5th plant in Vijaywada and also increasing wind energy capacity
Due to good monsoon, demand for asbestos sheets from rural area is likely to be robust and SIL should benefit considerably from the same. SIL is available at :- 1. 2.50xFY12E Eps and 1.52xFY12E Cash Eps 2. 2.22xFY13E Eps and 1.35xFY13E Cash Eps Above valuations are very tempting. Its Book Value will also cross Rs 100/ mark by March 2011. Current market cap of Rs 52 crores is very low at Sensex level of 17,000. In fact,
scrip is available as if Sensex is hovering below 10,000. Investors can buy this scrip as downside from current marketprice is very low whereas scripcan go up even 100% in next 1 year or so.
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