Elantas Beck India- strong visible growth ahead
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=2768
Printed Date: 20/Apr/2025 at 5:31pm
Topic: Elantas Beck India- strong visible growth ahead
Posted By: jstk
Subject: Elantas Beck India- strong visible growth ahead
Date Posted: 05/May/2010 at 5:57pm
|
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. ------------- If you buy for a non-value reason, you will end up selling for a non-value reason. |
Replies:
Posted By: hit2710
Date Posted: 05/May/2010 at 7:04pm
Elantas Beck looks like a good business. The carrot that will always be hung in front of shareholders will be of possible delisting.  ------------- 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: nav_1996
Date Posted: 05/May/2010 at 7:37pm
| Why is div yield so low? |
Posted By: jstk
Date Posted: 09/Jun/2011 at 4:13pm
|
u/c today @ 1428. No update available as of now to justify the large jump. jayendra ------------- If you buy for a non-value reason, you will end up selling for a non-value reason. |
Posted By: hit2710
Date Posted: 09/Jun/2011 at 6:21pm
yes sir yes sir three bags full.  ------------- 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: subu76
Date Posted: 09/Jun/2011 at 8:48pm
Glad to see you back
|
Posted By: Kabootar
Date Posted: 10/Jun/2011 at 7:37pm
|
Are they getting sold? I think there has been some global restructuring at the parent company level... ------------- Verbal diarrhoea! A most deadly disease. |