Sector Analysis of Plastic Products related Companies
Indian Plastic made a promising beginning in 1957 & today employs about 40 lakh people with around 30000 processing units the majority of which are small & medium enterprises. The plastics industry is a growing industry in India. It has expanded at ~8% CAGR over the last five years.
Supreme Industries ltd : CMP 1086:
Best among Plastic industry. For the last 18 years this company is able to grow its revenue from 500 cr to 5000 cr ie. 10X and Profit from 3 cr to 500 cr i.e. again more than 10X hence investment in this company of 1 lakh is worth 2Cr. Ie. 200X. Stocks have moved from Undervaluation to High valuation. Where there is growth there is wealth. Many people in this group have been holding this company since 150, 6 years back. Still no need to hurry and can hold it for long term wealth. Current year revenue has also fallen by 2% and Net profit has grown by 4% respectively. Buying can be done only during fall near 730 and we can hold this multi-bagger stock for the long term.
Astral Poly Technik Ltd CMP 866:
Good among Plastic industry with the base at Ahmedabad. Just listed 12 Years back near 8. During that time their revenue and profits were 100 cr and 10 cr. Today they are able to generate around sales and profits of around 2600 cr and 250 cr. Today’s profit is almost twice that of just 10 years back sales. High Growth sustained with low debt. Hence investment of 1 Lakh already 1 cr with the whole investment refunded in dividends. Many people in this group bought around 350 just 4 Years back and still there is no need to sell. Current Year revenue and profit have grown by 3% & 27% respectively shows muted demand affected by the global slowdown. New buying again could be done near 800 during any fall and can hold it for long term wealth creation. The company has acquired a 51% stake in “REX”, engaged In the business of Manufacturing & supply of corrugated and other plastic piping solutions against consideration of Rs. 75 cr paid in cash. 20% holding is with Different FPI and 6% with Mutual fund companies.
Nilkamal Ltd CMP: 1070
Nilkamal Limited is in the manufacturing business of molded furniture and material handling products with diversified product profiles. They are also having a presence in the retail business of lifestyle furniture, furnishings, and accessories under its brand '& home' & Nilkamal Mattresses. Able to grow their revenue from 200 cr to 2000 cr and Profits from 10 cr to 120 cr during the last 15 years. Hence investment of 1 lakh is already 30 Lakh during the last 18 years. Many people in this group Bought Nilkamal just at 370, 4 years back, and still, there is no need to worry. New buying again can be done near 1400 and can hold it for long term wealth creation.
Sources:
Various publications
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