Hindustan Tin Works is one of the leading can manufacturing companies in India. With over 5 decades in existence, this company provides a wide range of metal packaging solutions.
For more info check, http://hindustantin.biz
NUMBERS - THE LATEST
Market cap: 82 crores CMP on Day07 Feb2017: Rs 79 BV: 120
Revenue FY16: 297 cr Net profit FY16: 14 crore FV: 10
POSITIVES
1. Hindustan Tin Works achieved a PAT of 14 crores in FY2016. Out of that 9 crore came from the sale of investments.
2. Company has a solid balance sheet with cash on books at 13 CR and long term debt of 28 crores.
3. HTW increased its export sales from 68 to 72 crores.
4. Company has a joint Venture with London listed Rexam.
INTERESTING INFO
1. Hindustan Tin Works participated in a trade fair held at Dubai in Nov 2016. Going in the right direction to grow exports.
2. Stemcor AG, a British metal company, holds a 9.6% stake in the company. United India Insurance and Religare Finvest are other large share holders.
3. Company credit rating by ICRA is A2+ for short term and A- for long term
4. Some of the brands / products for which HTW makes containers are Nestle Milkmaid, Delmonte pinapple slices, Protinex, Sambandh ghee, Cherry blossom and Asian paints.
NEGATIVES - POSSIBLE RISKS
1. Slow recovery in the global and local economy could be a negative for this company.
MY TAKE
Hindustan Tin Works is a high quality company. A leader in its business area. Metal can consumption in India is very low. Compared to the consumption scale of USA at 160 for India it is near to 1. So one can imagine the future potential. Added to that, metal cans are re-recyclable unlike plastic.
Company is deeply undervalued. With a CMP far lower than the book price, and a single digit PE, this stock has a long way to go. With a well established customer base, professionally and technically capable company, HTW could reward its investors in a big way.
HTW is an obvious potential multibagger!!
Disclosure: I own shares in Hindustan Tin Works
For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.
For more info check, http://hindustantin.biz
NUMBERS - THE LATEST
Market cap: 82 crores CMP on Day07 Feb2017: Rs 79 BV: 120
Revenue FY16: 297 cr Net profit FY16: 14 crore FV: 10
POSITIVES
1. Hindustan Tin Works achieved a PAT of 14 crores in FY2016. Out of that 9 crore came from the sale of investments.
2. Company has a solid balance sheet with cash on books at 13 CR and long term debt of 28 crores.
3. HTW increased its export sales from 68 to 72 crores.
4. Company has a joint Venture with London listed Rexam.
INTERESTING INFO
1. Hindustan Tin Works participated in a trade fair held at Dubai in Nov 2016. Going in the right direction to grow exports.
2. Stemcor AG, a British metal company, holds a 9.6% stake in the company. United India Insurance and Religare Finvest are other large share holders.
3. Company credit rating by ICRA is A2+ for short term and A- for long term
4. Some of the brands / products for which HTW makes containers are Nestle Milkmaid, Delmonte pinapple slices, Protinex, Sambandh ghee, Cherry blossom and Asian paints.
NEGATIVES - POSSIBLE RISKS
1. Slow recovery in the global and local economy could be a negative for this company.
MY TAKE
Hindustan Tin Works is a high quality company. A leader in its business area. Metal can consumption in India is very low. Compared to the consumption scale of USA at 160 for India it is near to 1. So one can imagine the future potential. Added to that, metal cans are re-recyclable unlike plastic.
Company is deeply undervalued. With a CMP far lower than the book price, and a single digit PE, this stock has a long way to go. With a well established customer base, professionally and technically capable company, HTW could reward its investors in a big way.
HTW is an obvious potential multibagger!!
Disclosure: I own shares in Hindustan Tin Works
For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.
Any data available on their exports vs domestic sales break up? What about cost of raw materials are they crude oil dependant?
ReplyDeleteDear Sir, thank you once agin for your new recommendation. Sir, i have noticed few things while checking the BS, 1) debtor days have been rising 2) FY 16, there was appreciable contribution from other income to earnings which may not be available in future 3) Divident pay out has not increased correspondingly with respect to increase in earnings.4) short term borrowing is abt 5 times the cash available. As you mentioned in your earlier reply, i do agree this is working capital but isnt it too high compared to cash available or Net profit,I mean this will continue to exist in BS for long time to come.
ReplyDeleteAs per my view there is no negative in HTW
ReplyDeleteSir can you analyse Meghmani Organics? It can a good multibagger.
ReplyDeleteHello sir ur analysis is superb
ReplyDeleteCan u check blue chip tax
Can we buy @ CMP?
ReplyDeleteResults are pretty bad...eps is down by 50%, share price is going to nose dive.
ReplyDelete.. Should we sell and buy at lower levels?