MAHALAXMI RUBTECH LIMITED (514450) - PORTFOLIO STOCK

Today I am expressing my view on on one Technical Textile stock.

MAHALAXMI RUBTECH LIMITED (514450)

Mahalaxmi RubTech (MRT) is a part of the Mahalaxmi Group of Industries, a corporate conglomerate active in the manufacture & export of Textiles, Dyes, Pigments, Auxiliaries and Synthetic Rubber / PU-Coated Fabrics.

The Mahalaxmi Group has founded its business on a corporate philosophy of blending conventional and modern technologies, to produce ideal manufacturing solutions. And its industrial vision is truly transnational – in technology, perspectives, networking, and service ideas.

Mahalaxmi Rubtech Limited is headquartered in Ahmedabad, India. It has the technological expertise and the manufacturing capacity to produce blankets of lengths up to 426 feet, and widths up to 3,700 mm.

PRODUCTS

1. OFFSET PRINTING BLANKETS

IMPRINT range of Offset Printing Blankets are specifically designed by integrating the three technologies required to manufacture offset printing blankets i.e. textile technology. rubber technology and process technology. under one roof. Since we have years of experience in the manufacture of textile printing blankets & rubber coated fabrics. we are able to provide offset printing blankets that are exceptional in quality alongwith consistency and durability that is incomparable.

IMPRINT Offset Printing Blankets are manufactured using latest production techniques at our advanced manufacturing facility. Our on-house fabric weaving facility and enormous experience in the textile industry gives us a competitive edge.

Not only do Company make their own fabric that is specially designed, engineered and created with innovative fabric constructions but also manufacture the rubber compounds needed. Company have also developed unique processing techniques used in the manufacture of Offset Printing Blankets. Thus, ensuring that the printing performance is dependable and uniformly consistent.

2. TEXTILE PRINTING BLANKETS

Mahalaxmi Rubtech Limited (MRT) is a manufacturer-exporter of truly world class Rubber Textile Printing Blankets and Coated Fabrics.With a track record spanning 13 years and thousands of high-performance Blankets, MRT today enjoys a significant presence and high clientele loyalty in markets around the world.

The industrial philosophy behind MRT's IMPRESSIONS range of Printing Blankets is in fact a wish list of every Textile Printer. These Blankets meet his every need, pre-empt his every problem, and value-add his product quality in every sense of the term.

3. RUBBER COATED FABRICS

MRT coats fabrics of sizes up to 3,700 mm, and its world class technology and integrated processes ensure optimum cost-effectiveness for the consumer. Its plants feature the most stringent quality-testing laboratories and processing facilities for Elastomer (Rubber) Coated Fabrics in India, and the company backs it up with techno-consultancy.

MRT plants have the capacity to coat fabrics with a vast range of Elastomers -Chlorobutyl, EPDM, Fluoroelastomer, Hypalon (Du Pont), Naural Rubber, Neoprene, Nitrile, Silicone, Urethane,etc. These coatings can be executed on Base Fabrics such as Aramids, Cotton, Glass Fibre, Nylon, Polyester and Silica Fibre.

Main applications includes

Air Seals

Bellows

Diaphragms

Drop Cloth

Expansion Joints

Fireproof Blankets

Flexible Ductings

Gaskets

Hovercraft Skirts

Welding Curtains

4. HYDRAULIC SEALS

MRT offers a comprehensive array of Sealing technology solutions to the global Fuid Power industry, spanning a vast range of Hydraulic applications.

The most important characteristic of MRT Hydraulic Seals is their capacity to adapt spontaneously and automatically to the working conditions, maintaining a constant sealing efficiency, minimum wear& friction.

1. Dust Seal

2. Rod Seal

3. O-Ring

4. Piston Seal

5. Wear Ring

5. AIR CELL

The Air Cell (Flexible Separator) is fitted inside a conservator tank, isolating insulating oil from the atmosphere, and thus preventing contamination of gas and/or moisture from coming into contact with the transformer oil due to oxidation and hydrolysis. The bag is vented to the transformer through flange type mounting such that it inflates or deflates to accommodate oil volume displacements due to changes in the transformer temperature.

The Air Cells are manufactured using time tested combination of Nylon (Polyamide) fabric and thick coating of Elastomers i.e. Acrylonitrile Butadiene Rubber (NBR), Polychloroprene (CR) and Hypalon (CSM). The rubber compounds are so formulated, so as to minimize separator degradation and resist leakage of air through membranes thus reducing the amount of air in the transformer oil. Over a period of time this air / gases can reduce dielectric strength and thereby accelerate the aging of the insulation system.

6. TECHNICAL TEXTILES

MRT serve high-value Technical Textiles in World-class automatic Rapier looms. The Production Plant is spread over more than 10,000 square meters with production capacity in excess of 6 million linear Meters per annum.

The Production is vertically integrated and equipped with Twisting, warping and weaving. It is also possible to offer value addition to fabrics such as heat-seating, singeing, brushing, washing, dyeing, and water/fire Retardant treatment. MRT also have ability to special treatment of stretching fibers. The process is used to decrease crimp in warp direction and subsequently to increase the module of the fibers.

Company website : Clickhere

OUTLOOK

Company shares are trading in BSE. Promoter holding in company 62.04 %. (Increased in March qtr from 57.07%)

Company posted 56.88 Cr top line in March qtr.

(QoQ increased 24.8 %)

Net profit is 0.85 Cr in the March qtr.

(QoQ increased 130 %)

YOY topline increased to 20 % (202.65 Cr vs 168.74 Cr)

YOY Net profit increased to 6% (3.29 Cr vs 3.08 Cr)

Book Value Rs 54.5

Stock is trading low PE 17.8 as compared to major peers.

Stock is trading at Rs 58.55.

Stock is trading nearly its Book value. Promoters have increased their stake in the company by issuing a warrants. This is huge positive and trust for the promoters for the company.  Company is dealing with Diversified products in the Technical textiles segment which is having good potential to grow which has been witnessed in the recent qtr performance. This stock will give multiple fold returns to investors in days to come.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”