Dear Reader,
Today 29/12/2017, Spectra Industry has touched 42 Rs and was recommended to buy at 19 Rs on 13th June 2017 for the target of 40 Rs.
within 6 months it is giving 121% return......Fantastic return
Book the profit as my given target 40 Rs achieved today.
Happy investing!!
Kamlesh
================================
Short Term – Auto Ancillary Sector
Recommendation: Buy
Hold 1 Year Target: 40 Rs.
Date: 13/06/2017
SPECTRA INDUSTRIES LIMITED
By Kamlesh
Bavrva
CMP: 19.08 Rs.
BSE Code: 513687
Market Capital: 14
Cr.
Face Value: 10
52 Week Low / High:
11.5/22.5
Book Value: 19
Price/Book Value:
1.04
Promoter Pledge: Nil
Part – 1 Company Overview:
v Spectra Industries Limited was incorporated as a Public Limited company on 23rd
July, 1992 in the State of Maharashtra and obtained a certificate of
commencement of business on 14th August, 1992 and is operating through its own
premises located at Malad West, Mumbai.
v The Company had set up a Commercial Press
Shop at Murbad (near Kalyan, 80 kms from Mumbai) having infrastructure for
processing large automobile sheet metal components such as, all skin panels
like roof panel, bonnet, dicky, doors, wheel fenders, bumpers, petrol tanks etc.
v These automobile parts were manufactured for
various automobile companies especially FIAT but due to closure of plant of
FIAT in India the company’s manufacturing activities were reduced considerably.
v During the year 2010, the company has taken
up the dealership business of Mahindra
Navistar Automotive Limited.
v The Company has established a
proprietary unit “Spectra Automotive” to cater needs of sales, service and
spares of
o
Light
Commercial Vehicles in the
range of 4 tones gvw to 6 tonnes gvw
o Heavy Commercial Vehicles like goods vehicles and
o buses in the
range of 25 tonnes gvw to 49 tonnes gvw in the territory of entire Mumbai, Navi
Mumbai, Thane and Raigad district.
v It includes Construction tippers, Haulage
vehicles and Tractor trailors.
v The Company has set up a workshop at Mira
Road and Nerul, and soon starting another workshop at Ajiwali, Panvel, Navi
Mumbai.
Current Business
The company is
currently continuing with Automobile parts manufacturing activities on a small scale and
supplementing its income by doing trading business in various items like
chemicals, food grains, steel, coal and various other commodities.
The company has
secured dealership of Mahindra Navistar Automotives Limited and has already
started sales and service workshop at Mira Road, Thane and another such
establishment at Panvel, Navi Mumbai which is on completion stage and will
start soon.
With brand name of
Navistar and Mahindra Group and rich experience of Promoters in the business
the company is confident to perform well in future.
Dealership
Mahindra Navistar
Heavy Commercial Vehicle & Light Commercial Vehicle
(Exclusive dealer for Entire Mumbai, Thane and Raigad District).
Trading Business in
Steel
Chemicals
Organic &
Inorganic Commodities
Coal
Manufacturing
Brake Shoe
Spectra Industries Limited Shareholding Pattern:
Spectra Share holding Pattern
|
|
Description
|
Percent
of Share (%)
|
Promoters
|
55.735
|
Public
|
44.265
|
Total
|
100
|
Focus on - Financial Results March 2017:
Spectra Industries Limited
|
||||
Quarter Ended
|
Year Ended
|
|||
Particulars
|
31.03.2017
|
31.03.2016
|
31.03.2017
|
31.03.2016
|
Revenue from Operations
|
5251.72
|
2336.27
|
13082.28
|
12143.94
|
Other Income
|
163.54
|
55.71
|
550.45
|
141.94
|
Total Revenue
|
5415.26
|
2391.98
|
13632.73
|
12285.88
|
EBITDA
|
103.62
|
161.47
|
368.45
|
223.76
|
PBT
|
62.6
|
100.72
|
173.07
|
44.96
|
PAT
|
14.64
|
78.92
|
125.11
|
23.16
|
EPS
|
0.21
|
1.11
|
1.77
|
0.33
|
1. Spectra
is trading near Book value and below Net sale/Share (184 Rs) of the 2016-2017 year.
2. Spectra
industry PAT jumped to 125.11 Cr compare to previous year 23.16 due to other
income increased.
3. Spectra
industry EBITDA jumped to 368 Cr compare to previous year 223.76
4. The
company has secured dealership of Mahindra Navistar Automotive Limited and sales
and service workshop at Panvel, Navi Mumbai which is on completion stage and
will start soon. This will create positive impact on profit margin.
5. Due
to Indian economy is grooming, Auto industry will boost up and Spectra will get
benefit of it for a long time.
6. Last
5 Year CAGR (Compounding annual growth rate) Sales Growth rate is 22%.
Recommendation:
v Stock
CMP is 19 Rs. and stock is trading at P/E 11 & TTM EPS 1.17, based on all
above investment points, I am suspecting stock may touch rs.40 within a 1
years’ time horizon.
Please
note:
v Note: The articles
are not research reports but assimilation of information available on public
domain and it should not be treated as a research report.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.
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