Pennar Industries
pennar industries ltd Pennar Industries Limited having a Marketcap of Rs.458 crores is engaged in manufacturing of steel products, such as Cold Rolled Steel Strips (CRSS) and Cold Formed Metal Profiles. Its heavy engineering products division manufactures floors, side walls, roofs, end walls and doors, as well as under-frame parts for railway wagons and coaches. Its infrastructure division manufactures building products, which include purlins, roofing sheets and deck plates; road safety systems, which include crash barriers for road safety; fabricated products, such as fabrication of heavy structures for industrial buildings, conveyors, racking systems and boilers. Its building and construction division is engaged in the design, manufacture, supply and installation of pre-engineered steel buildings and building components for industries, warehouses, commercial centres, multi- storied buildings, aircraft hangars and stadiums. Five year topline CARG was 26.14 pc and bottomline was 36.7 per cent. Total revenues which were Rs.335 crores in FY07 shot up to Rs.1070 crores in FY2011. PAT which was Rs.14.87 crs zoomed to Rs.70.98 crores in FY2011. Pennar Industries has a asset light business model and hence its Sales/Fixed asset ratio hovers around 4.21. The company is doing annual business in excess of Rs.1000 crores on an Equity base of Rs.61 crores and a Net Fixed Asset base of Rs.155 crores.Moreover the company ’ s Debt-Equity ratio is 0.51 and it has cash and cash equivalent to the tune of Rs. 29.9 crores as at end fiscal 2011. The company ’ s ROE stands at 35 pc while its ROCE is 38 pc. The company has good working capital management in place. Promotors stake stands at 39.13 pc whilst Institutional holding is 23.79 per cent. Considering the business model and the above numbers, the company is likely to do well going forward especially if we take into account that its EPS is around Rs.5.85 which is growing at around 38 per cent p.a.and it pays a dividend too, the dividend yield being 3.3 per cent.
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