Starting out with just one small polymer extrusion plant, today Emmbi Industries has grown to one of the India's largest specialty polymer processing company. In a journey of 2 decades, the company has transformed from a small operation with less than 10 members to a company that has over 180 customers in around 50 countries across the world.
For more info check, http://www.wovensackindia.com/
NUMBERS - THE LATEST
Market cap: 124 crores CMP on Day26 Jan2016: Rs 70.20 BV: 35.86
Revenue FY15: 192 cr Net profit FY15: 6 CR FV: 10
POSITIVES
1. Stable and consistent revenue growth over a decade.
FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding.
INTERESTING INFO
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years.
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.
NEGATIVES - POSSIBLE RISKS
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.
MY TAKE
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time.
Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.
At a market cap of 124 crores, this company with great future prospects, is available cheap.
An excellent potential multibagger!!
Disclosure: I own shares in Emmbi Industries.
For consultation(commercial) and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
For more info check, http://www.wovensackindia.com/
NUMBERS - THE LATEST
Market cap: 124 crores CMP on Day26 Jan2016: Rs 70.20 BV: 35.86
Revenue FY15: 192 cr Net profit FY15: 6 CR FV: 10
POSITIVES
1. Stable and consistent revenue growth over a decade.
FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding.
INTERESTING INFO
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years.
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.
NEGATIVES - POSSIBLE RISKS
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.
MY TAKE
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time.
Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.
At a market cap of 124 crores, this company with great future prospects, is available cheap.
An excellent potential multibagger!!
Disclosure: I own shares in Emmbi Industries.
For consultation(commercial) and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
