10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, August 18, 2011

Innoventive Industries Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Scripscan:Innoventive Industries Ltd

Story:Innoventive Industries (IIL) is a multiproduct engineering company currently engaged in the manufacturing and sale of precision steel tubes, tubular components, auto components, machined components and other steel products. It caters to diversified industries such as auto, farm equipments, general engineering and oil & gas in both domestic and export market with over 475 customers world wide. Its major customers include Bajaj Auto, BHEL, Thermax, John Deere India, Sundram Industries, Gabriel India and Alstom Projects.IIL is among the leading manufacturers of ERW/CEW tubes in India.It is approved tube supplier for domestic OEMs (Bajaj Auto is the largest customer) and caters to auto ancillary companies in and around Pune.The company has invented the use of cold pilgering process to make CEW tubes from ERW tubes without draw bench. As per the study conducted by the Indian Institute of Technology, Mumbai, this process saves energy costs up to 80%, minimizes usage of chemicals and reduces wastage of steel by 7% without compromising on the quality of the product. So far, this product has been well accepted by 93 customers worldwide and is sold under ARIDOM brand through long-term arrangement with Salem Steel North America, LLC. The company has applied for process and product patent rights for this with 33 countries and expects approval by FY 2012. This process already provides pricing advantage to the company on CEW tubes, acquiring the patent rights over the same would enhance the company's business and, thus, profitability.Membrane strips, made from steel coils and used in boilers and heat exchangers, are largely imported in India due to technical complexities. The company has developed in-house capacity to produce these membrane strips working as import substitute. This has been accepted well as the company is the largest domestic supplier of membrane panel strips to companies like BHEL, Thermax Limited, Alstom Projects India Limited, Cethar Vessels Limited. It provides savings for power generation equipment manufacturers such as Thermax and BHEL, while its high margin product for Innoventive.Currently the company enjoys various government benefits under the mega project status. The plant at Pimple Jagtap has been granted mega project status by the government of Maharashtra. This entails several benefits to the plant such as electricity duty exemption for the period of seven years till November 2015, 100% exemption from payment of stamp duty and industrial promotion subsidy (IPS) equivalent to 75% of the eligible investment to be made from March 28, 2007. Also the company is availing interest free sales tax deferral loan from the government due to its presence in backward area. The repayment of sales tax deferral loan will start from FY 2014 onwards.It should deliver an EPS of 12-13rs going forward.At present prices its a hold.Comparable peer tube investments is almost quoting same valuation.

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner