Shakti Met-Dor Ltd - 170.00 Rs
Incorporated in 1988, Shakti Met-Dor Ltd (SMDL) has established itself as India’s leading manufacturer of Performance Steel Doors. It offers a total door set solution, which includes design manufacturing, supply and installation of steel door sets. It primarily caters to infrastructure industry, information technology, power, textile, hotel, ITES, BPO, pharma, food processing and healthcare sector. Company’s product line includes complete range of general doors, scientific doors, fire doors, pure stainless steel doors, commercial doors and other special application doors that have been developed in consultation with leading architects, consultants and specifiers. By offering effective use of vision panels, hardware, ironmongery and unlimited range of paint finishes, SMDL products are far superior to other doors using traditional materials. Its special stainless steel doors are designed to meet harsh environmental exposure to chemicals, water, steam, laboratories, bottling plants, food processing plants, hospital surgery rooms and all humid environments. On the other hand their scientific door surpasses the most stringent requirements associated with industries like pharmaceuticals, hospitals and at the same time being aesthetic also. This is proven by the fact that Shakti doors are installed in the plants/offices of corporate biggies like Pfizer, Cadilla, Shanta Bio, Dr. Reddy’s, Cipla, GE Shipping, Nuclear Power Corp, HSBC, Citibank, DLF group, British High commission, Oberoi Hotels, Holiday inn, Bank of America etc. Incidentally, it has also been exporting Shakti Doors to other countries in the Middle East, Sri Lanka, Madagascar, Kenya Cyprus etc.
SMDL’s manufacturing plant is located at Gagillapuram, Andhra Pradesh. The company began operations with technical assistance from Martin Roberts of UK, however, since 1999, it has charted its own independent course. Today it possesses the technical expertise, innovative design capability and manufacturing facilities to fully satisfy every customer requirement. To maintain its leadership, company is regularly expanding its manufacturing capacity. After doubling the capacity to 40,000 units in FY06, company further augmented its installed capacity by 50% to 60,000 units in FY07. Due to robust outlook, it is now contemplating to take it to 200,000 units in couple of years. Notably, this ISO 9001: 2000 certified company is stream lining its operations by implementing ERP from SAP business software. Last fiscal it also commissioned the R&D centre and facilities training centre. On the export front, company is looking at South Asia, among other regions, as a possible growth area for its product and is actively exploring it. For future, SMDL is examining the feasibility of introducing new products to cater to the building industry which are wood substitutes and would also compliment the current products. Moreover, after getting expertise in various projects, company now provides consultancy for recommending suitable ironmongery and accessories to others.
The government’s special emphasis on infrastructure and the increase in FDI investments expected in this area as well as other industry segments, would result in a large market for company's products. Secondly, the aggressive growth plans of the pharma, healthcare and Information Technology industries will also help company in maintaining its growth over the next few years. Considering its first three quarter nos, it is expected to clock sales of Rs 70 cr and PAT of Rs 12 cr for FY08 which works out to an EPS of Rs 44 on a very tiny equity of 2.75 cr. Ironically, company hasn’t raised or diluted the capital since its public issue in 1994. At the CMP, scrip is trading at P/E ratio of merely 4x times. With 52 week H/L as Rs 378/160 and expected book value of Rs 125, scrip can easily shoot up Rs 275 (i.e. 60% appreciation) within a year. Moreover it’s a strong bonus candidate as well. Hence investors are strongly recommended to buy at current levels.
SMDL’s manufacturing plant is located at Gagillapuram, Andhra Pradesh. The company began operations with technical assistance from Martin Roberts of UK, however, since 1999, it has charted its own independent course. Today it possesses the technical expertise, innovative design capability and manufacturing facilities to fully satisfy every customer requirement. To maintain its leadership, company is regularly expanding its manufacturing capacity. After doubling the capacity to 40,000 units in FY06, company further augmented its installed capacity by 50% to 60,000 units in FY07. Due to robust outlook, it is now contemplating to take it to 200,000 units in couple of years. Notably, this ISO 9001: 2000 certified company is stream lining its operations by implementing ERP from SAP business software. Last fiscal it also commissioned the R&D centre and facilities training centre. On the export front, company is looking at South Asia, among other regions, as a possible growth area for its product and is actively exploring it. For future, SMDL is examining the feasibility of introducing new products to cater to the building industry which are wood substitutes and would also compliment the current products. Moreover, after getting expertise in various projects, company now provides consultancy for recommending suitable ironmongery and accessories to others.
The government’s special emphasis on infrastructure and the increase in FDI investments expected in this area as well as other industry segments, would result in a large market for company's products. Secondly, the aggressive growth plans of the pharma, healthcare and Information Technology industries will also help company in maintaining its growth over the next few years. Considering its first three quarter nos, it is expected to clock sales of Rs 70 cr and PAT of Rs 12 cr for FY08 which works out to an EPS of Rs 44 on a very tiny equity of 2.75 cr. Ironically, company hasn’t raised or diluted the capital since its public issue in 1994. At the CMP, scrip is trading at P/E ratio of merely 4x times. With 52 week H/L as Rs 378/160 and expected book value of Rs 125, scrip can easily shoot up Rs 275 (i.e. 60% appreciation) within a year. Moreover it’s a strong bonus candidate as well. Hence investors are strongly recommended to buy at current levels.
1 comment:
Hi
Why do you think that despite such good results, the share price of the company is so low. Rs 150 for Rs 45 EPS less than 3.5 PE. Market cap of only 41 cr. I understand company has 1 lac sq ft building worth more than 15 cr and 6 acres land ( dont know the current market value )besides the fixed assets and the IPR and the goodwill. What do you think are the reasons for the low price.
regards
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