Samkrg Pistons and Rings - Telefolio
Dr .MILLIND MADHANI
Friday Telefolio.com
6-8 minutes
Vol. No. : 23 Issue No. : 45 Friday, September 22, 2017
Well set
The company has well-diversified client base among two and three wheeler auto and industrial players, besides good presence in replacement and export markets
|
Samkrg Pistons and Rings |
|
520075 |
|
XC |
|
Not listed |
|
INE706B01012 |
|
SKRG@IN |
|
Rs 10 |
|
Rs 324/ 169 |
|
Rs 259 (as on 22 Sep 2017) |
Incorporated in 1988 and Promoted by S D M Roa, Samkrg Pistons and Rings (SPR)
manufactures and markets a wide array of engineered Pistons, Piston Pins,
Piston Rings & Circlips for the automotive markets and for industrial
usage. It manufactures pistons with different crown shapes with Asymmetric
& Symmetric profiles using eutectic and hyper eutectic and Aluminum Alloy
with Silicon Content in the required compositions and microstructure. Tin
coating, Molly coating, Graphite coating, Hard Anodizing and chrome plating are
done on pistons for improved performance as per the customer requirement.
The size varies from 35 to 130 mm long in special iron, malleable martensite iron, KV1 (nodular/ductile cast iron) IKA pistons. Similarly for Steel Rings the diameter ranges from 35mm to 120mm dia and Axial width range from 0.8mm to 3 mm. SPR also supplies piston rings with hard chrome plating, nitrated, min phosphated & ferrous coated in rectangular, wedge key stone shaped Napier with plain & barrel honed. Piston Pins are made in various alloy steels, heat treated and super finished ground in the range of 10 to 45 mm dia.
Of the total sales, around 55% of sales come from OEM automobiles and industrials clients, around 18-20% from exports and rest around 25-27% from after markets segment
R&D
SPR is constantly improving the technology to meet the Domestic & International emission norms (Euro III & Euro IV) and OEMs’ ever increasing demand of better quality and new developments to improve life cycle of their product
The company is aggressively pursuing new strategies with its in-house research and development facilities that will facilitate growth and leverage profitable customer relationships. The Company has been working continuously with its valued customers both in Domestic OEM’s and Replacement Market & Exports and with technical expertise both from Japanese & German Consultants.
The company is further working on manufacturing pistons used in gasoline and diesel Engines for Scooters, Motorcycles, Cars, Tractors, Light Commercial Vehicles, Stationary Engines and other special applications from 35 mm to 130 mm diameter.
Diversified list of customers
Domestic clients include Honda, Bajaj Auto, TVS, Kirloskar, Mahindra 2W, PIaggio, Honda Power products, Greaves cotton, Force Motors, Majestic Auto, Yamaha, LML, Tata Motors etc.
Internationally the company is exporting its products to 15 countries.
The Company has strong distribution network for aftermarket sales. In view of strong support of OEMs and because of established strong distribution net work, the company has been able to introduce value added products and ensure its in time reach to the customers.
Exports are rising
Company’s export sales are around 18-20% of total sales.
The Company is focusing exports to developed Countries like Europe, U.K, France, Germany, Spain, Brazil and Russia.
The Company has plans to increase exports to 25% of the total sales during the next 2 years.
GST impact on aftermarket affected June 17 quarter
For June 17 quarter, net sales was down by 4% to Rs 61.67 crore, OPM stood 170 basis points lower at 15% resulting in a 14% fall in OP to Rs 9.25 crore. Other income stood at Rs 15 lakh. Interest cost was down by 4% to Rs 0.43 crore and depreciation was flat at Rs 3 crore. Thus PBT stood at Rs 5.87 crore down by 18% YoY. After providing total tax of Rs 1.85 crore, PAT for the June 17 quarter stood at Rs 4.02 crore, down by 19% YoY.
For FY 17, net sales were up by 3% to Rs 251.59 crore. OPM stood at 16.1%, up 170 basis points, thus resulting in a 15% rise in OP to Rs 40.41 crore. Net profit was up 24% to Rs 19.45 crore.
Valuation
We expect the company to register net sales and PAT of Rs 267.83 crore and Rs 19.68 crore, giving an EPS of Rs 20 for FY 18 and sales and PAT of Rs 299.97 crore and Rs 23.08 crore, giving an EPS of Rs 23.5 for FY19. At current market price of Rs 259, the scrip trades at 11 times its FY 19 projected earnings.
|
|
1403(12) |
1503(12) |
1603(12) |
1703(12) |
1803(12P)& |
1903(12P)& |
|
Net Sales |
205.63 |
232.47 |
245.20 |
251.59 |
267.83 |
299.97 |
|
OPM (%) |
14.5% |
14.5% |
14.4% |
16.1% |
15.6% |
16.0% |
|
OP |
29.85 |
33.64 |
35.28 |
40.41 |
41.82 |
48.00 |
|
Other Income |
0.87 |
0.34 |
0.38 |
1.20 |
1.40 |
1.50 |
|
PBDIT |
30.72 |
33.98 |
35.66 |
41.61 |
43.22 |
49.50 |
|
Interest |
4.68 |
4.62 |
1.55 |
1.73 |
1.63 |
1.47 |
|
PBDT |
26.04 |
29.36 |
34.11 |
39.88 |
41.59 |
48.03 |
|
Depreciation |
10.45 |
11.57 |
11.71 |
12.86 |
13.25 |
14.58 |
|
PBT before EO |
15.59 |
17.79 |
22.40 |
27.02 |
28.34 |
33.45 |
|
EO |
0.00 |
0.00 |
0.00 |
0.32 |
0.10 |
0.00 |
|
PBT after EO |
15.59 |
17.79 |
22.40 |
26.70 |
28.24 |
33.45 |
|
Tax |
4.85 |
5.48 |
6.70 |
7.25 |
8.56 |
10.37 |
|
PAT |
10.74 |
12.31 |
15.700 |
19.45 |
19.68 |
23.08 |
|
EPS (Rs)* |
10.9 |
12.5 |
16.0 |
19.8 |
20.0 |
23.5 |
|
* Annualized on current equity of Rs 9.82 crore. Face
Value: Rs 10 |
||||||
|
|
1706(03)& |
1606(03)& |
Var. (%) |
1703(12) |
1603(12) |
Var. (%) |
|
Net Sales |
61.67 |
64.17 |
-4 |
251.59 |
245.20 |
3 |
|
OPM (%) |
15.0% |
16.7% |
|
16.1% |
14.4% |
|
|
OP |
9.25 |
10.71 |
-14 |
40.41 |
35.28 |
15 |
|
Other Income |
0.15 |
0.06 |
150 |
1.20 |
0.38 |
216 |
|
PBDIT |
9.40 |
10.77 |
-13 |
41.61 |
35.66 |
17 |
|
Interest |
0.43 |
0.45 |
-4 |
1.73 |
1.55 |
12 |
|
PBDT |
8.97 |
10.32 |
-13 |
39.88 |
34.11 |
17 |
|
Depreciation |
3.00 |
3.00 |
0 |
12.86 |
11.71 |
10 |
|
PBT before EO |
5.97 |
7.32 |
-18 |
27.02 |
22.40 |
21 |
|
EO |
0.10 |
0.07 |
0 |
0.32 |
0.00 |
0 |
|
PBT after EO |
5.87 |
7.25 |
-19 |
26.70 |
22.40 |
19 |
|
Tax |
1.85 |
2.28 |
-19 |
7.25 |
6.70 |
8 |
|
PAT |
4.02 |
4.97 |
-19 |
19.45 |
15.70 |
24 |
|
EPS (Rs)* |
# |
# |
|
19.8 |
16.0 |
|
|
* Annualized on current equity of Rs 9.82 crore. Face
Value: Rs 10 |
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