Grauer & Weil (India) Ltd - 110.00 Rs
Incorporated in 1957, Grauer & Weil India Ltd (GWIL) the flagship company of GROWEL group is one of the very few metal finishing houses world over, capable of offering an integrated package of chemicals, plants, effluent treatment systems and waste recovery techniques from spent solutions. In association and collaboration with renowned international partners like Serfilco-USA, Goema-Germany, Nippon Denro Shamrock-Japan, Hawkings-UK, Manz Galvano-Germany, Utikal-Germany, Sidasa-Spain and such other, GWIL has established a position of undisputed leadership in India with almost 50% share of the Indian electroplating market. It has divided its business model into following two segments.
Chemicals: GWIL produce more than 600 different metal finishing chemicals, spanning one of the widest ranges of applications for surface treatment. In addition it also offera a variety of intermediates used in the manufacture of plating chemicals.
Engineering: Under this division company offers a wide range of electroplating plants and equipments - from conventional stand-alone units to fully automatic programme controlled systems; integrated with effluent treatment, waste water recovery and re-circulation procedures. Be it for general plating, plating of printed circuit boards, continuous plating lines or pre-treatment/cleaning machines, company production programmes caters to all type of requirement for surface treatment.
Currently company is operating thru its four plants located at Vapi(Gujarat), Pune(Maharashta), Dadra and Barotiwala(HP). It is setting up a fifth plant with a capacity of 4000 MT in tax free zone of Jammu which is expected to become operational shortly. It also has full fledged R&D division equipped with sophisticated and analytical equipments and highly qualified / experienced technocrats. In near future, company is looking for diversification avenues in allied fields of surface treatment/finishes e.g. pre-treatment processes as also oils & lubricants.
However, apart from its above core business, GWIL has also ventured into real estate development from late 2003 and has got a 125,000 sq ft hi-tech mall (Growel’s 101) constructed on its own 10 acre surplus land in Kandivali – Mumbai. As on today the mall has become very popular and boasts of having high foot falls from suburbs for shopping as well as entertainment. The space has been leased out to Big Bazaar (Pantaloon) & Cinemax for which company earns a pure rental income of more than Rs 5 cr at the rate of around Rs 35 per sq ft per month. After tasting the success of its first venture and to cash on the burgeoning lease rental prices, company is aggressively constructing the Phase II, comprising a huge area of 300,000 sq ft. This is expected to get ready within this calendar year and will house large and small retail outlets, department stores, designer boutiques, fine dining restaurants, food courts, banqueting facilities, kiddie corners, beauty salons, health care centres, business hubs, ATMs, a cyber café, amphitheatre, and other specialty kiosks. Ironically, Phase – II is estimated to be leased out at an average rate of Rs 100 per sq ft per month. So, company may generate an additional rental revenue of around Rs 30~35 cr from Phase-II. After completion of Phase II, company intends to develop the last phase i.e. Phase - III which will be another 300,000 sq ft of area. So by early 2010, company may boast of developing and earning from 625,000 sq ft of Shoppertainment Mall. Apart from rental income company is also expected to get good revenue from various other promotional activities, advertising/branding inside the mall etc.
For FY08, GWIL is expected to report total revenue of Rs 185 cr and PAT of Rs 13 cr which leads to an EPS of Rs 10 on current equity of Rs 12.80 cr. But with operational of Jammu plant and Phase II, company is expected to register a topline of Rs 220 cr and bottomline of approx Rs 20 cr i.e. EPS of Rs 16 for FY09. Assuming there is no equity dilution; company has the potential to post an EPS of Rs 22 for FY10. Meanwhile at a reasonable discounting by 12x times against its FY09 earning scrip can shoot up to Rs 200 within a year. However only long term investors are advised to buy as any delay in construction of mall may restrict the short term rise in share price.
Chemicals: GWIL produce more than 600 different metal finishing chemicals, spanning one of the widest ranges of applications for surface treatment. In addition it also offera a variety of intermediates used in the manufacture of plating chemicals.
Engineering: Under this division company offers a wide range of electroplating plants and equipments - from conventional stand-alone units to fully automatic programme controlled systems; integrated with effluent treatment, waste water recovery and re-circulation procedures. Be it for general plating, plating of printed circuit boards, continuous plating lines or pre-treatment/cleaning machines, company production programmes caters to all type of requirement for surface treatment.
Currently company is operating thru its four plants located at Vapi(Gujarat), Pune(Maharashta), Dadra and Barotiwala(HP). It is setting up a fifth plant with a capacity of 4000 MT in tax free zone of Jammu which is expected to become operational shortly. It also has full fledged R&D division equipped with sophisticated and analytical equipments and highly qualified / experienced technocrats. In near future, company is looking for diversification avenues in allied fields of surface treatment/finishes e.g. pre-treatment processes as also oils & lubricants.
However, apart from its above core business, GWIL has also ventured into real estate development from late 2003 and has got a 125,000 sq ft hi-tech mall (Growel’s 101) constructed on its own 10 acre surplus land in Kandivali – Mumbai. As on today the mall has become very popular and boasts of having high foot falls from suburbs for shopping as well as entertainment. The space has been leased out to Big Bazaar (Pantaloon) & Cinemax for which company earns a pure rental income of more than Rs 5 cr at the rate of around Rs 35 per sq ft per month. After tasting the success of its first venture and to cash on the burgeoning lease rental prices, company is aggressively constructing the Phase II, comprising a huge area of 300,000 sq ft. This is expected to get ready within this calendar year and will house large and small retail outlets, department stores, designer boutiques, fine dining restaurants, food courts, banqueting facilities, kiddie corners, beauty salons, health care centres, business hubs, ATMs, a cyber café, amphitheatre, and other specialty kiosks. Ironically, Phase – II is estimated to be leased out at an average rate of Rs 100 per sq ft per month. So, company may generate an additional rental revenue of around Rs 30~35 cr from Phase-II. After completion of Phase II, company intends to develop the last phase i.e. Phase - III which will be another 300,000 sq ft of area. So by early 2010, company may boast of developing and earning from 625,000 sq ft of Shoppertainment Mall. Apart from rental income company is also expected to get good revenue from various other promotional activities, advertising/branding inside the mall etc.
For FY08, GWIL is expected to report total revenue of Rs 185 cr and PAT of Rs 13 cr which leads to an EPS of Rs 10 on current equity of Rs 12.80 cr. But with operational of Jammu plant and Phase II, company is expected to register a topline of Rs 220 cr and bottomline of approx Rs 20 cr i.e. EPS of Rs 16 for FY09. Assuming there is no equity dilution; company has the potential to post an EPS of Rs 22 for FY10. Meanwhile at a reasonable discounting by 12x times against its FY09 earning scrip can shoot up to Rs 200 within a year. However only long term investors are advised to buy as any delay in construction of mall may restrict the short term rise in share price.
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