Tuesday, July 12, 2016

TAINWALA CHEMICALS & PLASTICS (INDIA) LTD :- HIDDEN GEM

Dear friends,


  Today we are looking into one stock from Plastic Products sector, but this stock have huge unlock value for investors.

TAINWALA CHEMICALS & PLASTICS (INDIA) LTD

The Tainwala group has diverse production as well as marketing activities in its fold. The core competence of the group lies in plastics processing and marketing. The group has interests in fast moving consumer goods, consumer durables, industrial products, packaging and real estate.

  


          Tainwala Chemicals & Plastics Ltd. (India)

 

      The company started out by manufacturing household consumer utility products like ‘wet wipes’ and ‘mosquito repellants’. These products were launched under foreign technical collaborations with world leaders in their field like Storalene AB, Sweden and Sumitomo Corporation, Japan .

  • The company diversified into the plastics sheet extrusion in 1990. The company entered into a technical collaboration with Cincinnati Milacron, Austria for the manufacture of PVC Sheets .

  • In 1993 the company joined hands with another company Amut Spa, Italy for the expansion of its plastic sheet extrusion business.

  • The company's business of consumer products was subsidiarised into a new company, Tainwala Personal Care Products Limited in the year 1994, in order that better focus could be provided to the marketing of the products.

  • Company's primary activity today is plastic sheet and profile extrusion.

  

Samsonite South Asia Pvt. Ltd.

  • Samsonite South Asia Pvt. Ltd. was promoted by the Tainwala Group in a joint venture with Samsonite Corporation Limited, U.S.A. 40 % of the companies equity is held by the Tainwala Group, ( TAINWALA CHEMICAL HOLDS 10 % ),whereas the balance 60 % is held by Samsonite Corporation U.S.A. the company started operations in March 1997 .

  • The company, since inception has followed the stringent standards set by Samsonite worldwide in all areas beginning with plant layout, equipment selection, product selection and commercial production. The plant is situated at Nasik, about 120 kms. from Mumbai.

  • The plant is ISO 9000 and ISO 14000 certified. 80% of the companies production is exported worldwide including countries in North America, Europe, Asia, Africa and the Middle-East.

   

           SAMSONITE SOUTH ASIA"S expected 2016  topline around 1000 cr and bottom line around 100 cr, it comes around value of 280 cr for Tainwala chemicals ( presently holding good 3069873 shares of SAMSONITE SOUTH ASIA ). Also Tainwala chemical holds  " PERIWINKLE FASHIONS" shares.

(Tokyo-listed global lingerie brand Wacoal is entering India through a joint venture with Periwinkle Fashions. The new venture will be named Wacoal India, with Wacoal International Hong Kong).

 

    Tainwala chemical is receiving around 20 cr of dividends from their investments in mutual funds and other unlisted entity. Promoter holding 67 % of the company, Book value of the company around 47 with EPS of 4.4. Debit free company with 35 cr free reserve and 280 cr value in investments ,stock trading just 50 cr market cap is very interesting !!!!.  Unlock value of company is very huge, so investor have more patience can buy this stock @ current price and buy more in correction (if any) for multiple return in coming year. Stock trading both NSE and BSE @ 54 level.

 

Before buying any stock take advice from certified person.

 

Disclosure :- I am holding this company shares.

 

 

 





   

5 comments:

  1. Thanks again sirji. U r recommending sectors which have north side future and mostly growing stocks from said sector. सादर प्रणाम आपको

    ReplyDelete
  2. Is it the same Samsonite, which deals in luggage

    ReplyDelete
  3. Is it the same Samsonite, which deals in luggage

    ReplyDelete
  4. Is Tainwala a compelling BUY at this price? It is down to 46 now or still need to wait for some more correction ?

    ReplyDelete