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Brief
Information about Company (Investor Point of view):
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CMP : 120/-
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Equity Capital
& Face Value : 45,82,200/- Shares
of Rs 10/-Each
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Promoter ‘Holding : 42.41%
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Market Cap (Cr) :
55 Cr
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Listed on :
BSE
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Turnover & Profit : 105.06Cr
& 5.43 Cr (2014-15)
76.44 Cr
& 5.93 Cr
( as on 31.12.15)
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Debt Status
: 12.29 Cr as on 30.9.2015
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P/E
: Stock P/E 8 Industry P/E 20.85
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52 Week High/Low : 167/97.50
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Book value
(Rs) : 102.30
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About Company:
Magna Electro Casting
Limited. Incorporated as a public limited co in the year 1993, engaged in the
manufacturing and supplying ferrous components in small and medium volumes to
users worldwide.
Magna Specializes in the manufacture
of ductile iron and Gray Iron casting in the weight range of 300 grams to a
maximum of 2000 Kilograms. Magna also adds value by heat treatment, surface
treatments and machining so that the product are ready to assemble.
Magna has established
warehouse in the USA, this facility along with bi-weekly container shipments, allows
company to cater to low volume requirements. Magna has extensive experience in
the supply of safety requirement components in the casting and fully machined
forms.
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Product Type
Casting
Machined Components
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Valves
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Refrigeration
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Rail Road Elbow, Flange
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Printing Frames, Brackets, Cross
Beam
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Hydraulics
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Relief Valve, Base Plate
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Automotive Calipers, Carrier, Bearing
Cap
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Off Highway Drive
Disk, Pulley, Adjusting Rings
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Windmills Hub
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Hydraulics Air
Manifold, Cover Upper
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Magna has two wind Electric Generators with a
total installed capacity of 2400 KW. This two generators are capable of
generating 60-70% of the total annual power requirements of Magna. Magna has
also plan to install more win electric generators in the future to became self-sufficient
in power requirements which enable the company to reduce huge cost towards
power and electricity consumption. Magna has obtained various Quality Certificates
for maintaining and providing quality product to its customers.
Financial:
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2015-16 (Up to Dec)
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2014-15
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Sales
(In Cr)
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76.44
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105.06
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PAT (In Cr)
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5.93
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5.43
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EPS (Rs.)
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12.92
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11.85
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OPM
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16.76%
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14.38%
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Key Points:
- Book Value of the Company is Rs 102.30
- Least Leverage Company ( Having Debt of Rs 12 Cr only FY1-15-16 )
- Company has a good return on equity (ROE) track
record : 3Years ROE 14.80%
- Company has been maintaining a healthy dividend
payout 18%
- Credit rating of the company reaffirmed by CARE
on 8.1.2016 : Long Term Rating as CARE BBB+, Short Term Rating CARE A2
- Company Shares trading at a very attractive
valuation with limited downside risk
- Small Size Equity capital of the company,
Promoters Holding is 42.41%, HNIs and close families are holding about
28.19 % and 29.40% are with public
- Company having excellent setup in Coimbatore, 10 acres of Land, may be about 2.50 lacs square feet of total building.
Future Prospectus
& Strength
Recently
Company has commissioned of CATA 2 system for its furan Nobake Continuous Mixer
which regulates mold setting times by dozing catalyst during the mixing
process. This benefits the company on reducing mold scrap and mold related
rejection and increases mold strength which ensure on time delivery to
customers.
Installation
of various newly machine since last one year for improvement of product quality
and increase of production may bring a robust growth in coming years.
Conclusion:
· Company is
introducing various new products in market and in international market and
these are highly accepted. It will bring robust growth both in topline and
bottom-line.
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Good Valuation and investor friendly management
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Least Leveraged company
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Small Size of
equity and Consistent dividend paying
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A Safe bet
for long term investors with a price target of Rs 180-210 in 6-12 month.
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