Triveni Glass - Rs.94.00

Incorporated in 1971, Triveni Glass Ltd (TGL) was promoted by S.N. Agarwal who was associated with the first sheet glass plant in the country set up at Bahji (U.P.) four decades ago. Today, TGL is among the largest glass manufacturers with 20% market share in float / sheet glass. In fact, it is the only wholly-Indian enterprise to manufacture international quality float glass. It offers the widest range of glass products in sheet glass, laminated safety glass, toughened glass, float glass, figured glass, tinted glass, reflective glass etc. It has many firsts to its credit like making the first laminated glass, tempered glass, mirror glass and bullet proof glass in India. TGL is also the second largest manufacturer of Neutral Borosilicate Glass Tubes.

TGL’s huge manufacturing facility is spread over 50 acres at Allahabad and over 40 acres at Rajamundry and Meerut consisting of total 8 hi-tech plants. It has some of the best quality processes in India like using the latest laser technology for non-contact measurement, which ensures consistently high quality products for the special requirements of the glass industry. TGL also has one of the largest nationwide distribution networks in the industry that includes 16 sales offices and more than 200 wholesalers. Although it concentrates more on the domestic market, its products are exported to Italy, Greece, Egypt, U.A.E., Iraq, South Africa, Mauritius, Australia, Indonesia, Malaysia etc. TGL is among the few to make pyrolytic reflective glass which is used in construction and building exteriors to keep out the heat, glare, UV rays and sound as well as keep down the air-conditioning costs and sold as ‘Triflect’. Moreover its sister company, Hindustan Safety Glass Works Ltd. has been OE supplier to most automobile manufacturers from Hindustan Motors to Maruti Udyog Ltd and to Defence, Railways, State Road Transport organisation etc.

Now the biggest trigger for the scrip is its debt restructuring. TGL has already repaid the full loan amount to UTI and only the IDBI debt is outstanding for which it has entered into one-time settlement (OTS) scheme with IDBI's Stressed Assets Stabilization Fund. After a waiver of around Rs.98.50 cr. only Rs.67 cr. after Rs.10 cr. payment in FY05 remains outstanding, which will be paid in installments till 2009. It is also considering issuing 40 lakh equity shares to IDBI against part of the interest due. In short, it’s a strong turnaround story available in a fast growing sector linked to automobiles and the construction industry. For FY06, it may report net sales of Rs.190 cr. and NP of Rs.12 i.e. EPS of Rs.14 on its equity of Rs.8.63 cr. For FY07, it can clock a turnover of Rs.240 cr. and NP of Rs.14 cr. (excluding extraordinary items), which means EPS of Rs.17 and diluted EPS of Rs.12. As its 52 week high is Rs.128, the scrip has the potential to give 30~35% returns in the short to medium term. Aggressive investors are recommended to buy it at declines with a price target of Rs.140 in 9~12 month.