Sintex has shown great Q3 results. Revenues are up 41% and EPS is up 55%. At 170, the stock quotes at a P/E of 11 on the trailing 12 month EPS of 15.88.
| Sintex | Rs Cr. Except EPS data | Copyright © Market Vision | ||||||
| Dec-10 | Sep-10 | Jun-10 | Mar-10 | Dec-09 | Sep-09 | Jun-09 | Mar-09 | |
| Revenue | 1,183.84 | 920.61 | 907.96 | 1,083.20 | 835.51 | 711.23 | 651.69 | 830.62 |
| Other Income | 2.17 | 2.45 | 2.68 | 0.00 | 12.31 | 4.17 | 10.71 | 22.38 |
| Total Income | 1,186.01 | 923.06 | 910.64 | 1,083.20 | 847.82 | 715.40 | 662.40 | 853.00 |
| Expenditure | 1,026.73 | 787.20 | 809.60 | 935.46 | 756.46 | 622.05 | 611.63 | 705.77 |
| Net Profit | 112.81 | 100.16 | 79.06 | 138.73 | 72.45 | 58.26 | 60.59 | 115.10 |
| Profit Growth | 55.71% | 71.92% | 30.48% | 20.53% | 1.02% | -30.50% | 7.30% | 21.71% |
| Revenue Growth | 41.69% | 29.44% | 39.32% | 30.41% | 4.62% | -1.20% | -8.83% | -10.54% |
| EPS | 4.16 | 3.70 | 2.91 | 5.12 | 2.68 | 2.36 | 2.22 | 4.21 |
| EPS Gr.YoY% | 55.51% | 56.57% | 30.65% | 21.62% | 2.29% | -23.62% | 6.64% | 4.99% |
| TTM EPS | 15.88 | 14.40 | 13.06 | 12.38 | 11.47 | 11.41 | 12.14 | 12.00 |
| TTM EPS Growth | 38.47% | 26.18% | 7.59% | 3.15% | -2.81% | -3.11% | 14.30% | 20.06% |
Trailing 12 month EPS is back in growth mode – over 38% this quarter, and looking strong.
Mint says that the Sintex stock, which has fallen about 22% in a month, has been impacted by a slowdown in govt. orders. They have three lines of business – textiles, building material like in pre-fab housing/monolithic structures, and custom moulding with all three showing a reasonable rise. And we know it largely for the big black water tanks you see on rooftops!
I like this stock for the understated scale – they’re into telecom shelters, moulds for cars, pre-fab housing, textiles, etc., and have touched the 1,000 cr. per quarter revenue. Additionally, they acquire on a regular basis, and don’t have crazy amounts of debt (just 30 cr. a quarter as interest). It’s a momentum play though, and it moves in a volatile way.
There is a lot of activity in terms of promoter pledging and unpledging of shares, though I wouldn’t call it a major concern. Shareholding Pattern:
- Promoters: 35% – they’ve upped their stake 1% or so in Dec.
- FIIs: 35%
- Mutual Funds and Insurance: 11%
- Public: 19%
Technically the stock is weak, having lost so much recently.
Disclosure: I hold this stock, stop loss of about 150.
