Elantas Beck India- strong visible growth ahead

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   Elantas Beck India Ltd 

Main product lines: 

1) Electrical insulations -wire enamels, insulating varnishes, solvelntless resins 

2) electronic and engineering materials- casting & potting compounds , construction chemicals

Manufacturing plants: Pimpri (pune) & Ankleshwar

Promoter shareholding: 88.55% ( Elantas Gmbh, Germany)

Equity: 7.92 cr

Debt : nil

Investments : 55 cr

Market cap @ current price of Rs.507 : 402 cr

EV : around  350 cr

Results for 12 months ended dec 09:

Income: 201 cr

PBT: 46 cr

PAT: 31.61 cr

EPS: Rs.40 per share

Dividend: Rs.4.50 per share

Q 1 -2010:

Income: 61 cr ( up 41% yoy)

PBT: 13.5 cr ( up 59% yoy)

PAT: 9 cr ( up 54% yoy)

Last year the company acquired from Shimo Resins Private Limited,
technical knowhow and the business intangibles in the field of
manufacturing filled epoxy and polyurethane resins, hardeners and
catalysts used in casting, potting, encapsulating and sealing
applications 

often used in the electrical and electronic component industry

Growth prospects

 electrical insulations business

1)	Market leader in primary & secondary electrical insulation business

2) Realistically speaking, additional power generation capacity
addition of 40K MW is in the pipeline ( although target figures as per
GOIs 5 year plan is 78k MW by 2012). 

3) There has been huge order inflow to capital equipment mfgrs in this
field over the last 6-7 months and this should translate into assured
strong growth for Elantas over the next 2-3 year time frame.

electronic and engineering materials business

1) Technology buy from Shimo has provided the company access to
new technology for manufacture of more than fifty products, broadened
the product range and thereby strengthen the Company's market position.

2) the enlarged product range of the Company in the
Electronics & Electrical Compounds line of business will now
include Epoxy and Polyurethane (PU) products for use in Auto
Electricals, Electronics and Electrical Castings, for casting, potting
and encapsulating applications. The expanded product range will now
include specialty PU products with in-built flexibility and flame
retardant properties; low viscosity epoxy resins for high strength and
void-free impregnation of auto ignition coils in two-wheeler and
four-wheeler vehicles.

Q1 results validate this with a 80% growth in revenue to 13.5
cr & 200% growth in profits to 2.5 cr from this business, although
on a small base.

Construction chemicals: the company has strong brands like
BeckBond, Beckcoat & Dobeckot for resinous construction chemicals
for the industrial floorings, protective coatings, structural repairs,
waterproofing and as adhesives & sealants.

Promoters had come out with a delisting offer and the
discovered price was Rs.600 per share. This was rejected as not enough
shares were tendered by minority shareholders for successful delisting.

the visibility of growth ahead makes it a compelling buy @ current price of 507.

p.s- i'm invested.