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Monday, August 3, 2015
ASIAN GRANITO INDIA LTD (532888) :- TILES FOR PORTFOLIO
Today we are looking in to micro cap stock for medium term portfolio investors,
Asian Granito (Asian Tiles )India Limited has been among the fastest growing Indian
tile companies with a ten-year CAGR in revenues of 30 per cent. Engaged
in marketing tiles, engineered stone and natural marble and providing
interior flooring solutions.The company was established in 2000 by Mr.
Kamlesh Patel and Mr. Mukesh Patel as a tile manufacturing company. The
Company is India’s fastest growing ceramic, vitrified tile, marble and
quartz manufacturer and among the 50 most profitable global ceramic tile
companies. Products: Ceramic wall, ceramic floor and vitrified tiles •
Digital polished glazed vitrified tiles and digital wall tiles • Marble
and quartz The Company is headquartered in Ahmedabad, with manufacturing
facilities spread across 320,000 square metres at Himmatnagar (Gujarat)
and Idar (Gujarat). Asian Granito pioneered the manufacture of
vitrified tiles in India a decade ago. Asian Granito manufactures
different tile sizes and over 1,200+ different design patterns. The
Company’s total tile production capacity stood at 81,000 square metres
per day including outsourcing at the close of 2013-14. Within just 11
years, Asian Granito has raised its production volume eight times.
Nearly 97 per cent of revenues were derived from within India.The
Company has a pan-India marketing and distribution network, employing
over 2,800 dealers and sub-dealers.
The real estate clients Adani
group, Lodha group, Godrej group, Tata group, Ansal Api, Dlf Masters,
Unitech, Shobha Developers, Brigade Group, Sls Developers, Rohan
Housing, Kle Society, Prestige Group, Sriram Properties, Keerthi
Estates, Skyline Builders, Muthoot Developers and Kent Construction. The
Company was one of the first in its sector to enter into a joint
venture with an Italian tile company, for outsourcing raw material. The
Company accounts for 45 per cent of the market for engineered stone in
India today; it reported revenues worth H130 crore during last FY.
I expect India’s tile sector to grow considerably during the current
financial year.Tthe introduction of GST in India, could, benefiting
tile manufacturers. The organised segment of our sector is likely to
outperform its erstwhile average for another reason – the introduction
of GST is likely to bring a number of unorganised tile producers into
the country’s tax net for the very first time, increasing their
production costs and narrowing their pricing advantage vis-a-vis
tax-paid branded tile product.Gujarat manufacturers have established a
global cost leadership in the area of wall tile manufacture.All these
could add long term value to the stock.However,the stock is not actively
trading at the exchanges.Hence one should not buy much quantity in to
EQUITY :22.58 CR Book Value Rs:130.5/- P/E(trailing) 16.5. Company
has low interest coverage ratio(last 3 years average interest expenses
around 21 cr)
Stock trading both NSE & BSE( EXCHANGE SYMBOL ASIANTILES ) @ 114 level, investors can buy this stock for medium to long term portfolio, this one stock may give low risk high return in your portfolio.