Buy Prima Plastics for long term:
1.Set up in 1993 , Prima manufactures moulded furniture and Aluminium Composite Panel (ACP).
2. The company's manufacturing facilities are in Daman. The company has an equal JV in Cameroon, Africa, with a local entity as partner. The JV manufactures plastic-moulded furniture and woven sacks, and caters to Africa and other overseas markets.
3. Consolidated FY 14 Sales and PAT of Rs 103 Crs and Rs 7.6 Crs respectively as against consolidated sales and PAT of Rs 86.7 Crs and Rs 5.1 Crs respectively.
4. Contribution from ACP would increase going forward with demand from commercial real estate sector revival. Almost entire sales of the company is from plastic goods currently. Further, price of oil has come down which would result in lower raw material cost (Polypropylene - Crude oil derivative).
5. Revenue is expected to increase with rise inoverseas business from woven sacks and plastic furniture.
6. Crisil has recently upgraded rating from BBB- to BBB. Link Here
7. Company has reserves of Rs 42 Crs and paid up equity of Rs 11 Crs. With 1,10,00,470 paid-up shares, book value per share comes to Rs 48.64.
8. For a sales of Rs 103 Crs, the market cap of Rs 24.86 Crs is very low.
9. Consistently dividend paying since FY 10.
Strong buy recommended at current cmp of Rs 22.60.
Disc: It is safe to assume that I am invested in Prima Plastics.
1.Set up in 1993 , Prima manufactures moulded furniture and Aluminium Composite Panel (ACP).
2. The company's manufacturing facilities are in Daman. The company has an equal JV in Cameroon, Africa, with a local entity as partner. The JV manufactures plastic-moulded furniture and woven sacks, and caters to Africa and other overseas markets.
3. Consolidated FY 14 Sales and PAT of Rs 103 Crs and Rs 7.6 Crs respectively as against consolidated sales and PAT of Rs 86.7 Crs and Rs 5.1 Crs respectively.
4. Contribution from ACP would increase going forward with demand from commercial real estate sector revival. Almost entire sales of the company is from plastic goods currently. Further, price of oil has come down which would result in lower raw material cost (Polypropylene - Crude oil derivative).
5. Revenue is expected to increase with rise inoverseas business from woven sacks and plastic furniture.
6. Crisil has recently upgraded rating from BBB- to BBB. Link Here
7. Company has reserves of Rs 42 Crs and paid up equity of Rs 11 Crs. With 1,10,00,470 paid-up shares, book value per share comes to Rs 48.64.
8. For a sales of Rs 103 Crs, the market cap of Rs 24.86 Crs is very low.
9. Consistently dividend paying since FY 10.
Strong buy recommended at current cmp of Rs 22.60.
Disc: It is safe to assume that I am invested in Prima Plastics.
Good stock.Fundamentally sound for investment.
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