Monday, August 3, 2015

ASIAN GRANITO INDIA LTD (532888) :- TILES FOR PORTFOLIO

Dear readers,

   Today we are looking in to micro cap stock for medium term portfolio investors,

 


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    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 the stock.

 


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. 

 

 LINK TO  COMPANY WEB HERE

 

Disclosure :- Me and my family holding this stock.

7 comments:

  1. To add; dolly khanna holding 1.73% stake in this company.

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  2. Excellent research sir , this stock can give multi fold returns. Thanks for finding such a gem for us .

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  3. Patience will be key here..V,G has given a good pick ..result will be next trigger for price movement..value investor dolly Khanna holds a good chunk

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