Tinplate Company of India Ltd ( 504966 ) closes at ₹282.90 with a Gail of +1.10 % on on 14-September-2021 with formation of a Small Red Candle on Daily Price Chart.
About the Company : The Tinplate Company of India Limited (TCIL) is an India-based producer of tin coated and tin free sheets. The Company manufactures various grades of electrolytic tinplates, tin-free steel sheets and full hard cold rolled sheets (FHCR) used for metal packaging. The Company's product range includes Electrolytic Tinplate (ETP) line and Cold Rolling Mill (CRM) products. The Electrolytic Tinplate line products include single reduced tinplates, Open Top Sanitary Cans (OTSC), tin free steel and double reduced tinplate sheets. The CRM products include hot rolled pickled coils, full hard coils and temper rolled/double reduced (Dr) coils. The Company's works is located at Jamshedpur, Jharkhand and has over 11 offices in India and a distribution network with approximately 20 stocking points.
Sector Update : Positive
Refinitiv Average Score : 9
Financials : Tinplate Company of India Ltd has posted Net Sales / Revenue of ₹2281.00Cr & Net Profit ₹98.00 Cr in FY2021 and expected to post Net Sales / Revenue of ₹2768.00 Cr & Net Profit of ₹174.00 Cr in FY2022 .
Cash Conversion Cycle has improved
to 19Days in FY2021 from 44days in FY2020, which resulted in Net Cash Flow
turning Positive of ₹73.00 Cr. ROCE is
17% and EPS will improve from 9.38 in FY2021 to 16.61 in FY2022.
Valuations :
The Company is now Trading at X1.70 of its valuations of
FY2021 earnings with ~70% Premium and X1.04 of its FY2022 earnings with ~0.04% Premium.
Margin
of Safety (1Yr Bond Yield: Value>1 ) is now
0.90 which makes is attractive after ~10% dip in price.
The Equity Value Per Share ( Enterprise Value Method ) is ₹262
Early Trend:
1. Steel producers are ramping up capacity in
tinplate with an increase in out-of-home consumption and implementation of
quality control measures.
2. The
industry has been growing at a CAGR of 5-6 per cent. But with
institutionalizing of retail, growth could be much higher in future.
3. Effective
July 17, 2021, the government has enforced Steel & Steel Products’ (Quality
Control) Order, mandating usage of prime grades of BIS certified tinplate.
4. Domestic
prices are currently lower than international prices. Even though it may not
make commercial sense to import right now.
If We factor its FY2022 earnings/valuations, its Price
arrives at ₹457.00
Disclaimer : We are / may going to take exposure shortly.
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