Srikalahasthi
Pipes Ltd closes at ₹148.35 with a Gain of +5.0 %
on 01-June- 2020 with formation of
a Green Candle
on Daily Price Chart.
About the Company : Srikalahasthi Pipes Limited is
engaged in the manufacture and supply of ductile iron (DI) pipe. The Company offers
public utility services for water infrastructure development. It also produces
low ash metallurgical (LAM) coke, sinter liquid metal and power for captive
consumption in its integrated complex. In addition, it manufactures and
supplies cement and pig iron. Its DI pipes are supplied to various water
boards, municipal corporations, military engineer services, railways and
contractors across the country for their water infrastructure projects. It
offers DI pipes in a range of coatings and linings, including internal lining,
which consists of cement mortar lining with Portland Slag cement or Sulfate
resisting cement; external coating, which consists of metallic zinc coating
with finishing layer of Bituminous Coating, and other linings and coatings,
such as High Alumina Cement mortar lining, and Epoxy Coating and Polyethylene
Sleeves.
The
company has posted Net Sales
of Rs.1662.90 Cr & Net Profit of Rs.187.67 in FY2020 and
expected to Post Net Sales of Rs.1931.00
Cr & Net Profit of Rs.219.90 Cr in FY2021 .
Valuations : The Company is now
Trading at X 0.22 of its Value. We have valued the company with its full Financial
year 2020 earnings ( PAT ) with a
Discount of ~78% and X 0.19 of its FY21 earnings with a Discount of ~81 % .
Margin of Safety (1Yr Bond Yield: Value>1 ) is now 7.5 ; which
indicates Huge Under Valued stock
Disclaimer : We are / may going to take exposure
shortly.
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