Shree Ganesh Forgings Ltd - 28.00 Rs
Established in 1982, Shree Ganesh Forging Ltd (SGFL) is one of the well known manufacturer and exporter of flanges, fittings and automotive components. It specializes in producing complete line of stainless steel, carbon steel and alloy steel forgings for industries like oil, gas, petrochemical, food, dairy industries, breweries, nuclear application, automobile industry, two wheeler industry, earth moving industry, tractor industry, defense, railway etc. SGFL boasts of making more than 2500 varieties of specialized items on piecemeal production and manufactures different variety of flanges and fittings such a weld neck, slip on blind, lap joint, threaded, socket weld, forged vales etc weighing from 0.5 kg to 1000 kg. Moreover it also manufactures hot forged components such as gears, shafts, crankshafts, crown wheels and pinions, propeller shaft components like sleeve yokes, flange yokes, universal joint crosses, connecting roads, steering knuckle arms etc. for four wheelers, two wheelers etc. Interestingly, it also has capabilities to supply vast range of steel forged finished products like eye, shank, single, double, and swivel hooks for the lifting industry.
SGFL’s manufacturing plant, located in the industrial belt of Pawane in Navi Mumbai is well equipped with facilities right from raw material & cutting section, die making, upset forging, ring rolling, heat treatment, shot blasting up to machining and testing. Ironically, company products has been qualified, approved and certified by numerous foreign agencies across the globe. Infact SGFL is the only one company in India who is approved by Syncrude Canada and has obtained CRN No from all 13 provinces of Canada. Its product are well accepted in international market and being exported regularly to USA, Canada, U.K., Ireland, Europe (Germany, Netherlands, Belgium, Denmark, Spain, France, Greece, Austria, etc ) and Middle East markets. Importantly, SGFL has various alliances with internationally reputed organizations to market its product and nearly 70% of its revenues come from export. In domestic market SGFL is preferred supplied to biggies like Alfa Laval, BEML, Greaves, L&T, Voltas, BARC, Kirloskar, KSB, Godrej, M&M etc.
To cater the rising demand, SGFL has implemented an expansion plan in late 2005 to double its forging capacities from 11000 MT to 22800 MT at the existing location by installing 2500- MT press and 4000- MT press with robotic application, with additions of 48 nos of C.N.C Machines. The project is almost completed and is expected to start commercial production soon which will give a great fillip to its financials. Besides to increase its global presence, SGFL recently acquired 100% stake in two European companies - Hertecant N V, a manufacturing concern located in Belgium and ELFE, a distribution company located in France from Outo Kumpu for a consideration of 23 cr. Moreover it has also acquired free zone land at Jebil Ali SEZ in Dubai to start a state of the art manufacturing unit consisting of 36 CNC machines with a capacity of 1,80,000 pcs per month. For FY07 it may clock a turnover of 105 cr and PAT of 6.75 cr i.e. EPS of 5 Rs on current equity of 12.50 cr which can shoot up to 7~8 Rs EPS for FY08. However the appreciating rupee is cause of concern for the company. With 52 week H/L as 24/71 Rs and good institutional interest, scrip is trading fairly cheap at current market cap of merely 35 cr. Hence investors are advised to accumulate this scrip for 50% return in a year’s time.
SGFL’s manufacturing plant, located in the industrial belt of Pawane in Navi Mumbai is well equipped with facilities right from raw material & cutting section, die making, upset forging, ring rolling, heat treatment, shot blasting up to machining and testing. Ironically, company products has been qualified, approved and certified by numerous foreign agencies across the globe. Infact SGFL is the only one company in India who is approved by Syncrude Canada and has obtained CRN No from all 13 provinces of Canada. Its product are well accepted in international market and being exported regularly to USA, Canada, U.K., Ireland, Europe (Germany, Netherlands, Belgium, Denmark, Spain, France, Greece, Austria, etc ) and Middle East markets. Importantly, SGFL has various alliances with internationally reputed organizations to market its product and nearly 70% of its revenues come from export. In domestic market SGFL is preferred supplied to biggies like Alfa Laval, BEML, Greaves, L&T, Voltas, BARC, Kirloskar, KSB, Godrej, M&M etc.
To cater the rising demand, SGFL has implemented an expansion plan in late 2005 to double its forging capacities from 11000 MT to 22800 MT at the existing location by installing 2500- MT press and 4000- MT press with robotic application, with additions of 48 nos of C.N.C Machines. The project is almost completed and is expected to start commercial production soon which will give a great fillip to its financials. Besides to increase its global presence, SGFL recently acquired 100% stake in two European companies - Hertecant N V, a manufacturing concern located in Belgium and ELFE, a distribution company located in France from Outo Kumpu for a consideration of 23 cr. Moreover it has also acquired free zone land at Jebil Ali SEZ in Dubai to start a state of the art manufacturing unit consisting of 36 CNC machines with a capacity of 1,80,000 pcs per month. For FY07 it may clock a turnover of 105 cr and PAT of 6.75 cr i.e. EPS of 5 Rs on current equity of 12.50 cr which can shoot up to 7~8 Rs EPS for FY08. However the appreciating rupee is cause of concern for the company. With 52 week H/L as 24/71 Rs and good institutional interest, scrip is trading fairly cheap at current market cap of merely 35 cr. Hence investors are advised to accumulate this scrip for 50% return in a year’s time.
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