Shivalik Bimetal Controls - Rs.131.00

Shivalik Bimetal Controls was incorporated in 1984 to manufacture Thermostatic Bimetal Strips and other Clad Materials. Apart from manufacture and supply of Thermostatic Bimetals in Strip Form. The company also manufactures and supplies Components out of Thermostatic Bimetals and Other Alloys/Stainless Steel. Its plant is equipped with a Press Shop and Tool Rooms for production of such components, which are consumed by manufacturers of Colour Picture Tubes, Switchgears, Circuit Breakers and various other Electrical and Electronics appliances. In addition, the company also supplies Precision Rolled Stainless Steel Strips, High Precision Electrolytic Copper and Snap Action Discs

Its plant at Solan is equipped with the latest technology and is located Himachal Pradesh , at a height of 5000 ft. above sea level, which ensures dust free atmosphere which is conducive to the bonding process. The company produces 51 types of Bimetals and Trimetals and has recently developed narrow width burr free slitting, high precision EB welding, pre-soldered (Solder reflow) Strip in continuous coil and development of Electron beam welded shunt material for energy meters. Currently, the company is working to develop various Bimetal/Trimetal components for the automobile and Electric/electronics industry for different usage. Last year, the company completed substantial expansion of Unit-II in and is now expanding Unit-I for which major equipments have been identified and orders placed thereof.

For FY04, it reported Sales of Rs.48 cr. and NP of Rs.4 cr. with an EPS growing 68 per cent to Rs.21.25. Exports jumped to above Rs.9 cr. from Rs.2 cr. in FY03 and it paid 50 per cent dividend. For June'04 quarter, sales increased to Rs.16 cr. from Rs.8.34 cr. and NP also doubled to Rs.1.67 cr. from Rs.0.80 cr. Since its equity is very, very small at Rs.1.92 cr., small increase in NP will lead to a windfall rise in EPS. Moreover 61 per cent equity is held by the promoters. Since floating stock is low. This will lead to sharp appreciation going forward. With a huge export potential, it is estimated that the company will clock Net sales of Rs.60 cr. and NP of Rs.6 cr. leading to an EPS of over Rs.31. Investors can expect 100 per cent return in 12-15 months.