ITL Industries - Rs.36.00

ITL Industries Ltd (ITL) was established in 1986 as a commercial Tool Room to cater to the needs of local engineering industries. Since then, it has become the pioneer and leader in high speed sawing technology and has established itself in domestic and global market as an innovative and reliable metal cutting solutions provider. In 1999, ITL ventured into a completely new segment of Pipe and Tube machine manufacturing where micron and metallurgy is of utmost importance and started manufacturing Tube and Pipe Mills, Section Mills, Straightening Machines, Draw Benches, Automatic Cut-offs, Accumulators etc. Today, it offers 60 different models of bandsaw machines ranging from 100 mm to 1500 mm cutting capacity with manual, semi-automatic, automatic and fourth generation CNC machines. Apart from saw machines, ITL is also making Industrial Blades, Power Hackshaw Machines, Special Purpose Machines, Hydro Testers, lubricants and other supporting equipments. It is also engaged in the trading of hydraulic power packs and hydraulic presses.

From being the sole manufacturer of India's first 100% indigenously designed and developed High Speed Double Column Band Saw Machine, ITL has recently developed and manufactured India's first high Speed CNC Circular Sawing Machine which has been well-accepted by most engineering companies. With its technical tie-up with a Kasto Maschinenfabrik GmbH Germany, ITL manufactures three models of Kasto Sawing Machines with cutting capacities 250 mm and 400 mm diameters in India. Today, ITL has become the hub for Tube Technology for leading manufacturers as it has technical know-how from USA, Europe and Japan through which it offers state-of-the-art equipment crafted by a highly experienced technical team. Its clientele includes biggies of auto and engineering industry including BHEL, Bharat Forge, Escorts, Hero Honda, L&T, Tisco, Kalyani Group, ABB apart from Defence, ISRO and the Ordnance factories. With an outlet in USA, ITL has established itself as a reliable qualified vendor to world leaders in engineering with exports to Europe, Middle East and South East Asian countries. It regularly participates in events, Trade Exhibitions in India and abroad and is set to appoint 5 dealers, one each in UK, Poland, Germany, Turkey and South Africa to capture a share of the export market.

With a healthy order book position and due to the ongoing boom in the engineering and capital goods sector, ITL is expected to perform much better in coming years making it a solid bet for the medium to long-term. For FY06, ITL is expected to report a turnover of Rs.18 cr. and NP of Rs.1.50 cr. i.e. EPS of around Rs.5 on its equity of Rs.3.23 cr. The company is expected to declare a dividend of Rs.1 which works to a yield of about 3%. For FY07, it can post sales of Rs.25 cr. and NP of Rs.2.50 cr. i.e. EPS of Rs.8 and the dividend is expected at Rs.1.50. In spite of such strong fundamentals, the scrip is available at a market cap of Rs.12 cr. and is trading at a PE of less than 5 against its FY07 earning. Investors are strongly recommended to buy at current levels as its share price can double in 15 months.