Pennar Industries
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2631
Printed Date: 06/Apr/2025 at 3:10pm
Topic: Pennar Industries
Posted By: smartcat
Subject: Pennar Industries
Date Posted: 18/Jan/2010 at 12:29pm
|
Pennar Industries is actually a pretty good company. They get about 20% of their revenues from the Indian railways. It was originally a steel manufacturing company, but now they have diversified into automotive components, railway components, white goods parts, pollution control devices, pre-fab structures and so on.
These diversification moves has transformed the loss making steel company into a 30% growth rate engineering company.
Market cap: Rs. 450 cr
P/E: 10
Dividend yield: 2.84%
RoE: 25%
FY09 Sales & Profits: Rs. 730 cr and Rs. 38cr
Their 9mFY10 performance too is quite impressive.
Website: http://www.pennarindia.com - www.pennarindia.com
|
Replies:
Posted By: hit2710
Date Posted: 18/Jan/2010 at 10:00am
|
PENNAR INDUSTRIES BSE CODE 513228 FV RS 5 CMP 35 THE COMPANY WAS A COLD ROLLED STEEL MANUFACTURER TILL ABOUT 2-3 YEARS AGO BUT SINCE THEN IT HAS GONE INTO VARIOUS VALUE ADDED PRODUCTS WITH CLIENTS IN VARIOUS INDUSTRIES AS FOLLOWS: RAILWAY PRODUCTS—INTEGRAL COACH FACTORY,TEXMACO,TITAGARH WAGONS,BEML AUTOMOBILE PRODUCTS—TATA MOTORS, ASHOK LEYLAND, EICHER MOTORS BUILDING PRODUCTS—L&T, NAG CONST, SHAPOORJI PALLONJI POLLUTION CONTROL—THERMAX, BHEL,ABB PRESSED STEEL COMPONENTS—EMERSON ELECTRIC, TECUMSEH, TVS MOTORS, IFB ROAD SAFETY PRODUCTS—NHAI AND OTHER ROAD CONSTRUCTION COMPANIES FABRICATED PRODUCTS—ABB, THERMAX, PRASAD SEEDS PRECISION TUBES—BUS BODY BUILDERS COLD ROLLED STEEL STRIPS—AUTOS, WHITE GOOD, ELECTRICAL AND ENGG COMPANIES THE COMPANY HAS FIVE MANUFACTURING PLANTS LOCATED IN ANDHRA PRADESH, MAHARASHTRA AND TAMIL NADU. REVENUE WISE BREAK UP OF TOTAL SALES IS AS FOLLOWS: ENGINEERED PRODUCTS—Includes automobile products, pressed steel components, Precision tubes, Rolled steel products -----around 52% HEAVY ENGINEERING PRODUCTS---- Includes Rail wagons and coaches, -----around 24% INFRASTRUCTURE--- Includes building products, Road safety systems, Fabricated products, ESP Electrodes ----- around 23% FINANCIALS
LAST 5 QUARTERLY RESULTS
TOTAL EQUITY IS AROUND 63.24 CRORES AND OUTSTANDING NO OF SHARES IS 12.64 CRORES. PROMOTERS HOLDING IS AROUND 37% COMPANY RECENTLY COMPLETED A BUYBACK PROGRAM OF AROUND 31 LAC SHARES AT WITH THE MAX PRICE FIXED AT 40. POSITIVES: THE COMPANY HAS TRANSFORMED ITSELF INTO A VALUE ADDED COMPANY WHICH SUPPLIES PRODUCTS TO DIVERSE RANGE OF BUSINESSES WITH GOOD GROWTH POTENTIAL STRONG GROWTH DEMONSTRATED IN THE LAST 3-4 YEARS ALONG WITH GROWTH IN PROFITABILITY NEGATIVES: ALL THE RISKS ASSOCIATED WITH SMALL CAP ARE APPLICABLE TO THIS STOCK. TECHNICAL VIEW THE STOCK MADE A HIGH OF 46 IN JAN 08 AND FELL DOWN TO FORM A BOTTOM OF 15.5 IN MARCH 09 AND SINCE THEN HAS BEEN IN AN UPTREND. VOLUMES HAVE INCREASED SINCE SEP 09 IN THIS STOCK. LOOKING AT THE COMBINATION OF FUNDAMENTALS AND CHART PATTERNS, THIS LOOKS LIKE A GOOD STOCK TO ACCUMULATE ON DIPS FOR MEDIUM TO LONG TERM. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 18/Jan/2010 at 10:10am
|
Hi Smartcat and Basantji
I also inadvertently posted synopsis on the same company along with you. I would request Basantji to make a common thread of both the posts. Regards, Hitesh. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: chimak10
Date Posted: 18/Jan/2010 at 10:37am
| Now where did you guys heard about this company????? |
Posted By: smartcat
Date Posted: 18/Jan/2010 at 10:57am
|
I first heard about it a few months back on shivkumar's google groups newsletter. Somebody had posted a synopsis on this company. The management is trying hard to get noticed. Any question asked on CNBC is responded with a "we are tranforming ourselves from a frog to a princess" line. |
Posted By: nav_1996
Date Posted: 18/Jan/2010 at 11:19am
|
This is a great play on India's growth. They were doing well in early 90s but were hit by downturn in late 90s. But they came out much stronger and as a transformed company after 05. They have become a value added products comapny rather than just a rolling mill. They have managed last year's downturn in an impressive way.
Cheap valuation, low debt, good div yield, impressive return ratios and good growth prospects makes it an attractive buy. |
Posted By: smartcat
Date Posted: 18/Jan/2010 at 11:39am
http://www.moneycontrol.com/news/news/pennar-industries-eyes-fy11-sales-to-be-rs-1000cr_436514.html - Pennar Industries eyes FY11 sales to be Rs 1000cr
|
Posted By: hit2710
Date Posted: 19/Jan/2010 at 12:12pm
I was impressed by the chart pattern of the company and the volume increase since sep 09. And in the small cap thread, equity lover was insistent on this scrip and hence I decided to look into it and found it very attractive. I am in good company with smartcat on this one. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: NeerajMarathe
Date Posted: 19/Jan/2010 at 3:57pm
|
another group company Pennar Patterson (same chairman) had done a massive fraud in 2001, defrauding ppl of hundreds of crores. just FYI..
on pennar, they have a subsidiary manufacturing pre engineered steel buildings..excellent growth prospects..i think this is also sumthn ev1 shud watch out for.. ------------- Regards Neeraj Marathe |
Posted By: smartcat
Date Posted: 19/Jan/2010 at 4:14pm
|
All Pennar group companies were in serious trouble and went to BIFR in 2000s. Pennar Paterson was liquidated by the court.
Even Pennar Industries went into BIFR, but managed to come out of it after they changed their business model. As mentioned before, this is a turnaround story.
|
Posted By: TCSer
Date Posted: 19/Jan/2010 at 8:20pm
| I have entered in Pennar Industries based on reco of fellow Teddies Cheers. |
Posted By: hit2710
Date Posted: 22/Jan/2010 at 12:40pm
The counter of pennar seems to be displaying immense strength. In morning trades it made a low of around 31 and currently trading above 35.  ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 22/Jan/2010 at 12:47pm
|
The reason for this strength seems to be this announcement.
Pennar Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on January 29, 2010, inter alia, to consider the declaration of Interim Dividend for the financial year ending March 31, 2010. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: smartcat
Date Posted: 22/Jan/2010 at 2:41pm
| One of my concerns about this stock was regularity of paying dividends in the future. FY09 was the first year it paid dividends after it turned around. |
Posted By: hit2710
Date Posted: 22/Jan/2010 at 2:47pm
Management seems to be responding to catcalls. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: PKB2000
Date Posted: 22/Jan/2010 at 3:34pm
 ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: NeerajMarathe
Date Posted: 22/Jan/2010 at 7:29pm
|
mgmt interview-19 jan..for ur reference..
n an interview with CNBC-TV18, Nrupender Rao, Chairman of Pennar Industries Limited, spoke about his outlook for the company. Here is a verbatim transcript of an exclusive interview with Nrupender Rao on CNBC-TV18. Also watch the accompanying video. Q: Your revenues were up 30%. Could you just break up where the volume growth came in from? A; Our volumes came in from the auto, railway and the engineering sector. We were cold roll steel company some time back. We have transformed into an engineering company with supplies to the engineering, heavy engineering and the infrastructure sector. Lately, we have also moved into the construction sector with a subsidiary called Pennar Engineered Building Systems which will make pre-engineered steel buildings. Q: What kind of components do you supply to the auto companies and who are your key clients there? A: We supply steel profiles and various steel based components to companies likeTata Motors, Ashok Leyland, Eicher and TVS Motors. All the major auto companies are our customers. On the railways we supply to the integral coach factory at Perambur and the rail wagon factories in the Kolkata area. Hence, we have moved quite a bit aggressively into supplying coach components and the stainless steel profiles for the railways for both wagons and coaches. We are also in road safety. We make crash barriers for the highways. We are also in the pollution control sector by making dust collectors which are electro static precipitators to companies like Thermax, L&T and ABB who are the major manufacturers of this pollution control environment for cement and other mineral plants. Q: What is your order book is today? Break it up between the auto sector and railways segment. A: All these customers that I talked about are continuous. We keep on getting continuous orders for example Tata Motors and Ashok Leyland have been customers of ours for a long-long time. We clocked Rs 210 crore sales in the last quarter. In the next quarter January to March, we expect to better it and probably end up with something like Rs 230 crore sales, which would if broken up largely about one-third in the engineering sector, one-third in the heavy engineering and one-third will go into infrastructure and construction sectors. Q: If you do Rs 230 crore in the current quarter of Jan-March, by the time you get into FY11 would you have run rate of around Rs 250 crore a quarter which will get you Rs 1000 crore annual sales? A: We presented in the last balance sheet itself that our aim is to get Rs 1000 crore mark in the year 2010-11 and Rs 230 crore next quarter. We definitely are very confident of achieving a run rate of Rs 250 crore per quarter to make it Rs 1000 crore plus in the coming year, which is 2010-11. In addition our subsidiary company, Pennar Engineered Building Systems has been commissioned and they are already carrying an order load of Rs 50 crore. In FY11 we expect to have a turnover of at least Rs 150 crore. So Rs 1000 crore on the main company and Rs 150 crore on the subsidiary is what we are planning for next year. Q: You had margins of about 14% plus, do you think you can hold on to these kind of operating margins given how metal prices are moving? A: We have been steadily increasing our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins. It used to be about 11% a few years back and we have slowly moved up to 14%. Our efforts have been to add more and more value added products, more on engineering content, more of knowledge content, more of design content that is going in. So we expect that to definitely retain the margins and definitely slightly better it next year. As far as the steel price is concerned, we being in the secondary sector, we buy hot roll steel, cold roll steel and process them to make various engineered products. It’s really a pass through, so really speaking the steel prices per se don’t affect us, our performance. Q: So you are saying next year, if you do Rs 1000 crore of sales you will be able to report Rs 140-150 crore of EBITDA? A: Yes, we definitely are in that region. ------------- Regards Neeraj Marathe |
Posted By: EquityLover
Date Posted: 30/Jan/2010 at 1:09pm
| Interim Dividend of 10% declared. (0.50 Paisa / Share) |
Posted By: EMANI
Date Posted: 19/Feb/2010 at 2:36pm
|
Pennar Ind.....Showing strength......Trading at 35.6 even in market weakness
------------- esn |
Posted By: TCSer
Date Posted: 19/Feb/2010 at 6:58pm
| Has anybody received the dividend? |
Posted By: EMANI
Date Posted: 19/Feb/2010 at 9:57pm
|
Dividend is not received yet. ------------- esn |
Posted By: EMANI
Date Posted: 25/Feb/2010 at 10:11am
|
DIVIDEND PAID.COMPANY TARGETTING 1100 CR TURNOVER FOR FY 2011 PLUS INORGANIC GROWTH.
------------- esn |
Posted By: analyst_i
Date Posted: 03/Mar/2010 at 6:45pm
|
I have taken initial exposure in this , as I am very positive on companies serving railways(and metro) and Auto sectors.Also PEBS is interesting (where Everest industries also entered).I am bit concerned about the management( because of pennar patterson liquidation).If anybody have more info on management please put in the forum.Thanks. |
Posted By: EMANI
Date Posted: 10/Mar/2010 at 2:18pm
|
Pennar has commissioned the Rotary Compressor Housing manufacturing
line at its plant at Isnapur near Hyderabad in a record time of three
months. The equipment manufacturer is M/s. FUJI Metal Forming of Japan Rotary Compressors are the preferred choice for original air
conditioner equipment manufacturers in India and abroad due to its
distinct advantages over conventional reciprocating compressors which
include: 1) Low cost; 2) less space occupied and 3) less noise levels.
These compressors are also best suited for harsh weather conditions. Pennar's new line is capable of producing over 700,000 nos. of Housings per year. Pennar expects to achieve full capacity utilization in six months time. Pennar envisages huge growth for rotary compressors in the coming years, and consequently for its compressor housings. Pennar's products can be sold to compressor manufacturers worldwide and with increased substitution to these new age compressors, the demand is projected to increase. ------------- esn |
Posted By: analyst_i
Date Posted: 15/Mar/2010 at 6:10pm
|
sorry, it was my confusion. deleted. |
Posted By: balloon
Date Posted: 15/Mar/2010 at 6:14pm
|
what is the suspicion here?
------------- "The only way to win is work, work, work and hope to have a few insights" - Charlie Munger |
Posted By: Rehan
Date Posted: 18/Mar/2010 at 11:28am
|
Could any one please come out with projected EPS for the next 2-3 years for this one ?
Its cash flows dont seem to be great to me. Its PEB and Rotary compressor looks interesting.
|
Posted By: hit2710
Date Posted: 19/Mar/2010 at 12:27pm
Year 2010 11 12 Sales 742 932 1060 Net P 49 67 86 eps 4 5.5 7 These are according to a research report dated Jan2010. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: analyst_i
Date Posted: 19/Mar/2010 at 5:44pm
|
Karvy had put a target of 51 for this stock. http://www.moneycontrol.com/news/recommendations/buy-pennar-industries-targetrs-51-karvy_447748.html |
Posted By: EMANI
Date Posted: 25/Mar/2010 at 3:41pm
|
PENNAR is at 37 now.
------------- esn |
Posted By: hkumar
Date Posted: 26/Mar/2010 at 10:36pm
|
A question on the qualilty of management, the MD of the company (Nirupender Rao) has 93% of his holding pledged though only 2% of total promoters holding.....does it raise any concerns or just a small blip in so many good things. Please comment.
|
Posted By: hit2710
Date Posted: 26/Mar/2010 at 12:15pm
I think it must be the matter of convenience of pledging shares from a single holder rather than a group of people from amongst promoters which might have lead the sort of pledging u refer to. Pledging of 2% of a total holding of around 37% might not mean too much. I think this kind of pledging can be ignored if other factors are favourable. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 26/Mar/2010 at 12:21pm
|
The stock has registered a 52 week high today and also closed at 52 week high.
Jan08 high was around 46. Aug 94 high was 95. March-April 1992 high was 118. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: analyst_i
Date Posted: 20/Apr/2010 at 7:40pm
|
Promotors pledged shares with Cholamandalam DBS. |
Posted By: EMANI
Date Posted: 21/Apr/2010 at 3:46pm
|
Pennar trading @42.10
------------- esn |
Posted By: TCSer
Date Posted: 21/Apr/2010 at 7:58pm
|
Posted By: nav_1996
Date Posted: 28/May/2010 at 11:19am
|
Pennar increased the div by 25% to 1.25. So div yield still works out to > 3.
Management looks confident of future. They have turned around and transformed the company pretty well. |
Posted By: TCSer
Date Posted: 29/Jul/2010 at 11:41am
|
SHOULD WE BUY MORE PENNAR INDUSTRIES IN VIEW OF THE ATTRACTIVE REULTS ANOUNCED ON 29 JULY 10
Pennar Industries, a manufacturer of steel strips and engineering products, reported a 52.7 per cent increase in net profit to Rs 16.46 crore for the quarter ended June 30, 2010, as against Rs 10.78 crore in the corresponding quarter last year. Revenues during the quarter stood at Rs 259.21crore, up 43.1 per cent as compared with Rs 181.20 crore.
The company will invest about Rs 50 crore in capacity expansion at its Chennai plant. It was expecting growth in business from the pollution control segment and anticipated release of new designs for railway wagons. This would add to its top line and bottomline, chairman Nrupender Rao said. Pennar was also leveraging its engineering strengths to penetrate into the precision engineering segment in defence, aerospace and nuclear power. PEBS, a subsidiary of the company, had commenced production of pre-engineered buildings in January this year, and recorded sales of Rs 36.09 crore. Its total orders so far are in excess of Rs 150 crore, Rao said. |
Posted By: nav_1996
Date Posted: 30/Jul/2010 at 2:07pm
|
Amazing results.
Completely transformed from a rolling mill to an high growth engineering company. They continue to add new growth engines. After PEBS they are contemplating a railway wagon plant. |
Posted By: TCSer
Date Posted: 08/Aug/2010 at 12:17pm
|
some more analysis please on Pennar Industries. I think we shud we add more at present prices |
Posted By: TCSer
Date Posted: 20/Aug/2010 at 12:15pm
| Consolidating Can break out so soon. |
Posted By: arebaba
Date Posted: 21/Aug/2010 at 3:01am
| I am new to the equity forum but have been following Pennar for some time now. There were block 5 block trades done - one on each day of last week. The stock is being accumulated by institutional players although a large holder seems to be lightening up as well. Seems that besides the promoters the large holders are mostly FIIs (CLSA, DB, JP Morgan and Eight Capital). Eight Capital had led the restructuring of the company in 2006 and also have a board seat. I expect EPS in FY 10-11 to be in the 5.60 to 5.80 range but FY 11-12 will be an inflection year as they are doubling the capacity of PEBS which is their Pre-Engineered buildings subsidiary. Company has no significant LT debt and they are talking about inorganic growth as well. Company has a conservative management and I hope that they are not stupid about acquiring a company that can burden the company with too much debt or dilute the earnings. I expect the company to continue to grow at 15% growth rate without much trouble. Catalysts could be NSE listing and higher profile institutional investors getting involved which will mean multiple expansion. I expect Pennar to trade between 12-14 times PE over the next 12-18 months. |
Posted By: TCSer
Date Posted: 21/Aug/2010 at 3:39am
Thats good news.any idea abt size of block deals. |
Posted By: arebaba
Date Posted: 22/Aug/2010 at 5:14pm
| As per BSE - 600K each day Mon-Thurs and 400K on Friday. |
Posted By: arebaba
Date Posted: 22/Aug/2010 at 5:15pm
| As per BSE - 600K on each day Mon-Thursday and 400K on Friday. |
Posted By: TCSer
Date Posted: 22/Aug/2010 at 12:46pm
| there was no anouncement on bse for these deals.what does it mean? |
Posted By: TCSer
Date Posted: 22/Aug/2010 at 1:19am
| I fervently hope that pennar industries remains an exception to dubious reputation of its fellow hyderbad cos like satyam,tanla,mic, xl telecom,prithvi n remains aloof from the creative accounting fever. |
Posted By: arebaba
Date Posted: 22/Aug/2010 at 7:45am
All Block Deals on Pennar Industries
|
Posted By: arebaba
Date Posted: 22/Aug/2010 at 7:49am
| The FIIs that restructured the company have done thorough due diligence on the company and the corporate governance and best practices in the company is better than most Indian companies. |
Posted By: smartcat
Date Posted: 23/Aug/2010 at 4:06pm
Pennar is paying out 35% of their profits as dividends. No worries about creative accounting here.
|
Posted By: arebaba
Date Posted: 23/Aug/2010 at 4:50pm
| And the company spent 12 Cr last year to buy back stock! |
Posted By: TCSer
Date Posted: 23/Aug/2010 at 2:38am
| How does one find pennar when compared to manjushree technopack & modison metalsin terms of target price for next 1-2 years |
Posted By: nav_1996
Date Posted: 23/Aug/2010 at 9:07am
| Pennar is 10 times in size and a multi-product company as compared to Modison so risk is definitely less. |
Posted By: smartcat
Date Posted: 24/Aug/2010 at 1:30pm
|
I would rate Pennar Industries higher than Manjushree Technopak at the current prices. |
Posted By: TCSer
Date Posted: 24/Aug/2010 at 2:24pm
What are the specifics on whose basis you substantiate it? I am holding bot the companies. |
Posted By: nav_1996
Date Posted: 24/Aug/2010 at 2:38pm
|
Pennar's new biz has started showing results.
1. Sales up 40% and profits up 60%. 2. If they do an EPS of 6 (last Q was 1.4). PE works out to be 7.5. 3. They are moving up value chain on railway biz by getting into wagon manufacturing. It is their largest div. 4. Div of 1.25 / share. Yield works out close to 3%. 5. Very low debt 6. High ROCE It is not some non-descript company any more. It is 1000 cr + multi-product engineering company. |
Posted By: TCSer
Date Posted: 24/Aug/2010 at 3:18pm
|
1) Manjushree reported Q1 EPS of 3.88 implying an annualized EPS of 15.52 up from 7.8 EPS for March 10& a PE of 4.5 on current price of 71 . 2) Expanded capacity of 29000/- tonnes came into effect in march 2010 resulting in superb Q1 results. 3) Capacity set to further go up to 36000 Tonnes in current years due to excellent demand from all FMCG majors like Coke,Bisleri,UB,Glaxo,Unilever 4) ROCE constantly improving to 14.5% in March 10 |
Posted By: titu
Date Posted: 24/Aug/2010 at 3:36pm
|
Manjushree is strong at Rs.71.00 today with good volumes of 1.7 lakhs in BSE till 3.05 pm. ------------- An uncultured man blames others, a semi-cultured man blames all but a cultured man blames himself. |
Posted By: smartcat
Date Posted: 24/Aug/2010 at 3:42pm
| Yes, I hold both the companies too (and intend to hold both for a long time). Pennar happens to have a better return ratios than Manjushree. From business point of view, while Manjushree does what it does by increasing capacity, Pennar has been venturing into newer more interesting businesses (like pre-fab structures for example). |
Posted By: titu
Date Posted: 24/Aug/2010 at 5:51pm
|
The following information of Pennar Industry is found in Moneycontrol.
- Management very confident of 25% (topline and bottomline) - FY11 sales expected 1000 cr - Railways has become important part of business(body, surface, floor, i.e all parts above chassis) - Pre-engineered Building System (PEBS), a 90% subsidiary started commercial production effective January 1, 2010. - PEBS achieved a turnover of Rs. 28.3 crores and EBITDA of Rs. 12.2 crores in Q4FY10. THIS COULD POTENTIALLY TAKE THIS STOCK TO MULTIBAGGERS CATAGORY. - The company has given guidance of Rs. 150 crores and Rs. 200 crores of turnover to be contributed by only PEBS in FY11E and FY12E resp.. - During the year ended March 31, 2010, the company has bought back 44,53,479 shares from the open market. These shares have been extinguished, thereby reducing the equity capital. THIS SHOWS THEIR CONFIDENCE IN THE FUTURE. - Diversified exposure to various industries like AUTO, RAILWAY, POLLUTION CONTROL, WHITE GOODS, ROAD safety, electrical and fabricated products - New initiative into the pre-engineered business segment, and capacity expansion to meet the ever increasing order flow from railways segment. Diversified exposure to various industries like auto, railway, building products, pollution control, white goods, road safety, electrical and fabricated products - Enjoys strong relationship with big clients such as Tata Motor, Ashok Leyland, TVS, ICF, BEML, L&T, ABB, Thermax, BHEL, Alstom Power, HCC and IVRCL - Riding big on Railways expansion of Rs 2,500 bn in the current five year plan; Pennar aims to increase revenue share from Railways to 30% by FY11 from 24% in FY09 ------------- An uncultured man blames others, a semi-cultured man blames all but a cultured man blames himself. |
Posted By: TCSer
Date Posted: 24/Aug/2010 at 9:39pm
|
Railways are shaky, corrupt & single vendor monopolistic customer
who can ruin their vendors by delays,inefficiency ,incompetency more so
under union leader mamta bannerjee as minister. Ask kernex micro ,Texmaco,Titagarh wagons & MIC electronics on their experience with IR. Privatisation of railways will never happen & so thing will never improve |
Posted By: arebaba
Date Posted: 25/Aug/2010 at 5:40pm
| The demand from wagons is not just from IR as you may know private companies are aggressively acquiring wagons and 'lending' them to IR to get preferred rates on freight. Moreover, there are private rake terminals being set up by many companies who are carrying freight including inlogistics, sical and others. So IR may never get privatized but carrying freight(most profitable part of IR) is already open to private companies. Pennar is a supplier to all the major manufacturers of wagons. They make the entire body of the wagons - everything except the moving parts. |
Posted By: TCSer
Date Posted: 26/Aug/2010 at 2:14am
\ The price shot up yesterday. was it on the bais of karvy report? r u ready to add more at this rate? |
Posted By: arebaba
Date Posted: 26/Aug/2010 at 3:06am
| I think the price may have shot up as more blocks were not available and the buyers went to the secondary market to get more inventory. It is still trading at less than 10 times FY 10-11 EPS of INR 5.6 at CMP of 49.1. I would add on any weakness. |
Posted By: srini234
Date Posted: 26/Aug/2010 at 7:01am
| has anyone compared penndar industries with rishi laser. any thoughts this company. They had bagged a big order from LT, and also have products in railway related space |
Posted By: TCSer
Date Posted: 26/Aug/2010 at 11:08am
|
In their latest interview i read management have projected a topline of 1200 crores n with NPM of 6-7 % this implies an EPS OF 6- 7 ONLY How much PE would you give to this company? What cud be the factors which can increase the PE of the company. |
Posted By: nav_1996
Date Posted: 26/Aug/2010 at 11:17am
|
We should watch this for some more time. It is still in growth mode due to better product mix and capacity addition. When it is stable growing 10-15% then PE of around 7 is fine. But when it has shown a growth of 50% year to year a PE of 10 will not be high. It many get re-rated further. 60 should be fair price.
- I am invested and may be wrong and biased in my views. |
Posted By: TCSer
Date Posted: 27/Aug/2010 at 9:18pm
|
Pennar industries seems to be catching the attention of shrewd investors with the price moving to a new orbit. Technical analysts please advise on new targets |
Posted By: arebaba
Date Posted: 28/Aug/2010 at 12:32pm
|
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6444031.cms |
Posted By: TCSer
Date Posted: 28/Aug/2010 at 1:04am
|
Ventura securities has given a target of 110 . How plausible is this target? |
Posted By: TCSer
Date Posted: 29/Aug/2010 at 2:05pm
|
http://www.pennarindia.com/images/news/Business-India.PDF an old but interesting story on pennar |
Posted By: arebaba
Date Posted: 29/Aug/2010 at 9:14pm
The target can only be achieved if they have multiple expansion. Since their institutional investor base is growing, as signified by the large and frequent block trades we will probably witness multiple expansion to 10-12 range. However, there are also more day traders getting involved after Ashish Kacholia bought earlier this month (he is a well known value investor in the same class as Rakesh Jhunjhunwala) so we should expect increased volatility as well. |
Posted By: TCSer
Date Posted: 29/Aug/2010 at 10:04pm
| FROM WHERE U GOT THIS INFO ABT ASHISH KACHOLIA |
Posted By: arebaba
Date Posted: 29/Aug/2010 at 8:47am
From BSE web site for bulk deals
|
Posted By: TCSer
Date Posted: 06/Sep/2010 at 11:30pm
| Post Ashish Kacholia acquisition some bg banks & FIIS have recently entered into Pennar Ind like Citibank & Monsoon Capital. |
Posted By: bearish
Date Posted: 22/Sep/2010 at 11:09pm
| pennar down to 50. what would be a decent price to get into this? |
Posted By: TCSer
Date Posted: 22/Sep/2010 at 12:03pm
| BUY ON DIPS |
Posted By: nav_1996
Date Posted: 22/Sep/2010 at 11:48am
| It will correct more with market correction so it is advisable to wait. It is not a crying buy at PE of 11. |
Posted By: arebaba
Date Posted: 26/Sep/2010 at 11:53am
| If they achieve an EPS of Rs. 6 which is what the company has guided then it is still trading at a discount to peers. One can wait for earnings before taking a call in mid-October. However, there seems to be a bid at 50 as stock has not broken that level. Seems to be a buy at 50 levels till they report. Can re-evaluate after seeing the numbers. |
Posted By: TCSer
Date Posted: 04/Oct/2010 at 3:52pm
| Any adverse devlopment in this company which is bringing the price down. |
Posted By: nav_1996
Date Posted: 04/Oct/2010 at 3:55pm
| Not that we know of any. But pls remember if market corrects these will be first to correct. |
Posted By: nav_1996
Date Posted: 25/Oct/2010 at 2:05pm
|
Pennar does it again.
Revenue up by 38% Profits up by 42% |
Posted By: LearningToFly
Date Posted: 25/Oct/2010 at 3:15pm
|
Pennar also announced dividend of 0.50 per share. It is certainly negligible but the stock is not moving despite good results.
------------- Success... at all cost. |
Posted By: nav_1996
Date Posted: 25/Oct/2010 at 4:32pm
|
Dividend in not negligible. It is 1% of price and it is only interim div.
I would be a buyer if it drops below 50. |
Posted By: TCSer
Date Posted: 26/Oct/2010 at 1:51am
|
NIRMAL BANG TARGET 74 Valuation & Recommendation
|
Posted By: arebaba
Date Posted: 24/Nov/2010 at 2:37pm
| Pennar to list on NSE on November 25th!!! |
Posted By: nav_1996
Date Posted: 24/Nov/2010 at 4:09pm
| Good. I was wondering what is the reason for it to go up today. Now I know. |
Posted By: TCSer
Date Posted: 24/Nov/2010 at 10:36pm
| What are the positive effects of listing on NSE? Can somebody quantify with precedents & effect of NSE listing on other co share price |
Posted By: nav_1996
Date Posted: 26/Nov/2010 at 1:18pm
| Got rid of Pennar. Cutting down on mid-caps. Today's mid-cap index had melted while sensex was just down 1%. Can not impagine if sensex drops by 20%. I am hoping to get it cheaper at later point of time. |
Posted By: arebaba
Date Posted: 06/Jan/2011 at 6:01pm
| Company is reporting earnings on January 10th |
Posted By: TCSer
Date Posted: 06/Jan/2011 at 8:20pm
|
HAS BEEN Giving consistently good results for past 16 quarters. \ no reason 17th will be bad one steady compounder of a stock with excellent promoters n good growth in sector |
Posted By: TCSer
Date Posted: 10/Jan/2011 at 2:20pm
|
excellent results from pennar again.
Eps on annualzed bais touching 12 ------------- Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays |
Posted By: nav_1996
Date Posted: 11/Jan/2011 at 12:08pm
|
Had a chance to go thru the results.
EPS guidance for year is 6.15 and not 12. So PE for year is still 8. Not very cheap in current scenario. Operating margins have contracted sharply. Sales up 49% but Gross Profit up only 23%. We also need to see if 30% + growth is sustainable beyond this point. |
Posted By: Prakash.Hegde
Date Posted: 23/Apr/2011 at 8:59pm
|
Pennar Industries results for Q4 are out. Standalone sales up 30% and profits 38%. ------------- -Prakash |
Posted By: nav_1996
Date Posted: 23/Apr/2011 at 9:35pm
|
Though Y on Y results look good. Few things to note.
Q on Q profits is flat. Another worry is OPM is reducing every quarter. |
Posted By: kmp_saij
Date Posted: 25/May/2011 at 3:41pm
|
what to do with this stock? any clue? if we analyze numbers it looks cheap.. or is it value trap? ------------- Own whatever’s feared, shun whatever’s beloved. |
Posted By: nav_1996
Date Posted: 25/May/2011 at 3:54pm
| There is secular trend of decreasing OPM. This needs to stablize. Also thye nature of business is low end engineering so will not command huge multiples. 8-9 would fair range. |
Posted By: arebaba
Date Posted: 25/May/2011 at 4:01pm
|
EBITDA has decreased slightly as steel prices have increased but not at the cost of yoy top and bottom line growth. The stock doubled last year and has corrected with the market. There is also the year end dividend on the way that should be announced at the next board meeting. If you have to sell, wait for that announcement as stock should get support. Next years' EPS is supposed to be around 8 and even at 8 times stock should be fetching 64. Moreover the company's long term debt is less than 15 CR so all the EV is in the equity. There are worse places to be parking your money than getting 3%+ in dividend yield at Pennar! |
Posted By: smartcat
Date Posted: 25/May/2011 at 5:19pm
| Pennar Industries is at an inflexion point right now. If they do things right, they could go the way of Thermax and become a fairly well known engineering company. The management seems to be smart enough to get there. |
Posted By: kmp_saij
Date Posted: 19/Jun/2011 at 7:54pm
|
what is view of TEDDIES for this company?
It seems they post good result QoQ but due to some reason stock is not moving.
is thr corp governance issue??
Also they have not paid dividend this yr.. any reason??
I was invested basicallly due to decent div yield and now sitting on loss and also no dividend
 Promotors are also increasing stake QoQ so that helps to build conviction.
------------- Own whatever’s feared, shun whatever’s beloved. |