Query Board

Sintex Industries is a producer of plastic water tanks. It also manufactures corduroy fabrics. The company has operations in building material solutions, textile solutions, and custom building solutions. It is also involved in manufacturing of plastic products including prefabricated structures, industrial custom moulding products, monolithic constructions, and water storage tanks. As part of its textile business, the company specialises in men’s shirting. The company is headquartered in Kalao, Gujarat. On the consolidated financial front, the company has reported a decrease of 40.97 per cent in net sales to Rs. 546.2 crore for Q1FY20 as compared to net sales of Rs. 925.34 crore for Q1FY19. For Q1FY20 the company reported an operating loss of Rs. 435.03 crore and for Q1FY19 the company reported an operating profit of Rs. 62.24 crore. Also, in Q1FY20, the company incurred net loss of Rs. 426.78 crore as against a net profit of Rs. 39.12 crore posted in Q1FY19. On the annual front, the net sales increased by 13.38 per cent to Rs. 3,256.95 crore for FY19 from Rs. 2,872.68 crore for FY18. The PBT of the company decreased by 79.19 per cent to Rs. 37.52 crore for FY19 as compared to Rs. 180.27 crore for FY18. In FY19, the net profit decreased substantially by 84.83 per cent to Rs. 21.52 crore from Rs. 141.84 crore recorded in FY18. Hence, we recommend a SELL.

Sintex Plastics Technology Ltd. is an India-based company having business operations in custom moulding solutions, which includes post moulding operations as well, and building products and solutions. Its building products and solutions include manufacturing of water storage tanks, prefabricated and construction for mass housing, structural solutions, electrical solutions, water management solutions, environmental solution, energy solutions, interior solutions, material handling, telecom solutions, and industrial solutions. On the financial front, on a consolidated basis, the company’s net sales for Q1FY20 stood at Rs. 817.24 crore, which is a decrease of 38.33 per cent as compared to the net sales of Rs. 1,325.21 crore for Q1FY19. The company reported an operating loss of Rs. 671.66 crore for Q1FY20 as against an operating profit of Rs. 34.47 crore for Q1FY19. The company incurred a net loss of Rs. 642.65 crore in Q1FY20 as against a net profit of Rs. 37.53 crore in Q1FY19. Looking at the annual trend, the net sales were reported at Rs. 4710.95 crore for FY19, a decrease by 14.9 per cent compared to Rs. 5535.96 crore for FY18. In FY19, its PBT decreased significantly by 55.42 per cent to Rs. 84.27 crore as against Rs. 189.01 crore for FY18. For FY19, the company’s net profit decreased by 45.6 per cent to Rs. 94.46 crore from Rs. 173.63 crore in FY18. Thus, we recommend a SELL.

Polyplex Corporation Limited is a manufacturer of thin polyester terephthalate (PET) films and resins. The company’s business portfolio consists of biaxially oriented polypropylene (BOPP) films and cast polypropylene (CPP) films. Its main products and product lines includes Sarafil, which is BOPET films and BLOWN PP films; Saracote, that includes silicone-coated films (PET/PP); Saralam, including extrusion-coated film products, and Saraprint, which is polyester films for the digital print media sector. 

The products manufactured by Polyplex Corporation are used for packaging of flexible pouches, peelable seals and lids, industrial and specialties such as labels, lamination films and medical test strips, electrical supplies, imaging, video tape, etc. 

Looking at the quarterly trends on a consolidated basis, for the first quarter of FY20, the company reported net sales of Rs. 1,117.09 crore, an increase of 4.88 per cent as against the net sales of Rs. 1,065.04 crore for the same quarter of FY19. Its PBT also increased by 27.97 per cent for the first quarter of the current fiscal year and was Rs. 191.11 crore as compared to Rs. 149.34 crore for the first quarter of the previous fiscal year. The company gained a net profit of Rs. 154.22 crore in the first quarter of FY20, an increase by 33.66 per cent to the net profit of Rs. 115.38 crore gained in the first quarter of FY19. On the annual front, net sales for FY19 were Rs. 4,569.89 crore, which is an increase by 27.36 per cent when compared to Rs. 3,588.04 crore for FY18. For FY19, the PBT increased by 109.22 per cent to be Rs. 656.73 crore compared to Rs. 313.9 crore for FY18. The net profit for FY19 was reported at Rs. 583.66 crore, an increase of 105.43 per cent when compared to net profit of Rs. 284.12 crore for the previous financial year. The company has greenfield (BOPET) and brownfield (BOPP) projects lined up. For FY18-19, Polyplex Corporation declared an interim dividend and final dividend of Rs. 31 and Rs. 10 respectively per equity share of Rs. 10 each. Therefore, we recommend a BUY to the investor-readers of our magazine.

Vivimed Labs Limited is a pharmaceutical and chemical products company. The company’s main business segments include speciality chemicals and pharmaceuticals. The healthcare vertical of Vivimed Labs has its business operations in custom manufacturing of active pharmaceutical ingredients (APIs) and formulations for generics-manufacturing companies. Additionally, the company markets formulations for various therapeutic segments under its own brand name in India and generics in regulated markets. The specialty chemicals segment of the company produces active ingredients for a range of home, personal care, and industrial products. It also manufactures ingredients for diverse downstream uses in the photochromic, imaging chemicals, anti-microbial and pharmaceutical applications. Its products, which include sun and skin care, personal care, naturals and industrial chemicals, etc., are primarily manufactured at the Bidar facility. Other manufacturing units are located at Bonthapally, Jeedimetla, Haridwar, Kashipur, etc. 

Looking at the quarterly trends on a consolidated basis, for the first quarter of FY20, the company reported net sales of Rs. 344.2 crore, a decrease of 4 per cent as against the net sales of Rs. 358.54 crore for the same quarter of the previous fiscal. PBT also decreased by 66.22 per cent for the first quarter of FY19 and was Rs. 13.3 crore as compared to Rs. 39.4 crore for the first quarter of FY19. For the first quarter of FY19, the net profit decreased by 64.36 per cent to Rs. 10.14 crore when compared to Rs. 28.45 crore in the first quarter of the previous fiscal. 

On the annual front, in FY19, the company reported net sales of Rs. 1,315.17 crore, an increase of 10.92 per cent over net sales of Rs. 1,185.66 crore reported in the previous fiscal year. For FY19, the PBT stood at Rs. 66.04 crore, which is a decrease of 22.95 per cent compared to Rs. 85.71 crore for FY18. In FY19, the company reported a decrease in net profit by 26.4 per cent to Rs. 57.36 crore from Rs. 77.94 crore posted in the previous fiscal. Based on our analysis, we recommend our investor-readers to EXIT.

Windsor Machines Limited is a manufacturer of plastic processing machinery which includes pipe extrusion, blow film extrusion and injection moulding machines mainly. The company’s business segments include extrusion machinery division and injection moulding machinery. The injection moulding products include Excel series and KL series whereas the pipe extrusion line products include Agile series and Rapid 60. The products of blown film extrusion lines include a seven-layer blown film extrusion line. Other products of the company include twin screw pipe extruder, single screw pipe extrusion lines, inline drip-irrigation solution, multilayer IBC co-extrusion blown film lines, multilayer non-IBC co-extrusion blown film lines, etc. The company has its business operations in India as well as on foreign shores. 

On the consolidated financial front, for the first quarter of fiscal year 2020, the topline of the company was reported at Rs. 76.43 crore, marking an increase of 11.38 per cent compared to net sales of Rs. 68.62 crore reported in the corresponding quarter of the previous fiscal. The profit before tax decreased by 4.44 per cent and came in at at Rs. 1.29 crore as against Rs. 1.35 crore posted in Q1FY19. In the first quarter of the current fiscal year, the company posted a net profit of Rs. 11.42 crore as against Rs. 0.03 crore posted in the same quarter of the previous fiscal year. 

On the annual front, net sales reflected a fall of 12.25 per cent in FY19 to Rs. 349.5 crore as against Rs. 398.3 crore posted in FY18. The PBIDT of the company in FY19 decreased substantially by 65 per cent and was posted at Rs. 12.24 crore as against Rs. 35.77 crore in FY18. In terms of bottomline in FY19, the company posted a net loss of Rs. 3.03 crore as against a net profit of Rs. 12.05 crore posted in FY18. The company has declared rather disappointing financials over the year. The share on a YTD basis has fallen by over 50 per cent and does not look attractive enough to buy at the given valuations. On account of this scenario, we recommend our investor-readers to AVOID the stock.

Tinplate Company of India Limited (TCIL) is a producer of tin-coated and tin-free sheets. The company manufactures various grades of electrolytic tinplates, tin-free steel sheets and full hard cold rolled sheets (FHCR) which are used for metal packaging. Its product range includes electrolytic tinplate (ETP) line and cold rolling mill (CRM) products. Products in the electrolytic tinplate line include single reduced tinplates, open top sanitary cans (OTSC), tin-free steel, and double reduced tinplate sheets. The CRM products include hot rolled pickled coils, full hard coils and temper rolled or double reduced coils. The company has its facilities located at Jamshedpur in Jharkhand and has around 11 offices across India. It also has a distribution network with approximately 20 stocking points. 

From the financial point of view, net sales of the company for Q1FY20 were Rs. 520.01 crore as compared to the net sales of Q1FY19 of Rs. 521.4 crore. So there is a 0.27 per cent decrease in net sales of Q1FY20 than that of Q1FY19. For Q1FY20 the PBT stood at Rs. 15.6 crore which is an increase of 7.59 per cent than that of Rs. 14.5 crore for Q1FY19. For Q1FY20 the company recorded a net profit of Rs. 8.78 crore, a 7.09 per cent decrease in the profit than that of Rs. 9.45 crore gained in the same quarter of the previous fiscal year. 

On the annual front, for FY19 the company recorded net sales of Rs. 2,359.3 crore which is a 47.31 per cent increase when compared to the net sales of Rs. 1,601.61 crore for FY18. The PBT for FY19 stood at Rs. 91.77 crore as against Rs. 115.21 crore FY18. For FY19 there can be seen a decrease of 20.35 per cent in PBT as compared to FY18. Also, the net profit is recorded at Rs. 57.99 crore for FY19 which is a decrease of 20.74 per cent compared to the net profit of Rs. 73.16 crore for FY18. With the government having recently reduced corporate tax to around 25 per cent from 35 per cent, it is expected that this will have a positive effect on the company’s operations and revenues. Thus we recommend a HOLD to our investor-readers.

(Closing price as of Sept 25, 2019)