Dear friends, I wish you all Happy Ram Navmi.
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Sunday, 25 March 2018
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STARLITE COMPONENTS LTD (517548) - STOCK OF THE WEEK
Dear Investor friends Today I am expressing my view on one Electric component/LED/CFL industry stock.
STARLITE COMPONENTS LTD (517548)
Starlite
Components incorporated in 1991, now it is one of the largest manufacturers of
CFLs in India. During this period the industry, technology and market has
evolved and Starlite has been evolving with it. The last 3 years have laid a
strong foundation and now the company is looking at expanding its product
range, increasing penetration in the market and strengthening the bottom line
of the company.
The lighting
industry has shown a very quick shift from fluorescent lighting to LED (Solid
State) lighting. As Starlite was waiting for this opportunity, it plans to make
the most of it and capture a significant share of the market. The Indian
lighting industry continues to show strong signs of growth. It has been growing
at a CAGR of 59%, growing from Rs. 8,500 Cr in 2010 to Rs. 13,500 Cr in 2013.lt
is expected to cross Rs. 21,600 Cr. in the year 2020.
PRODUCTS
Following are
the few products of the company.
The government
initiatives are increasing and the opportunities are opening for the industry
faster than most projections had anticipated. However, the percentage usage of
lighting continues to be a high 18% of the total power consumption in our
country (much higher than the developed countries, which account for 12-15%) so
with the current Government the demand for LED products is expected to continue
and Starlite is gearing up to make the most of this opportunity.
CUSTOMERS
Starlite has
also added new customers to its portfolio &now has a strong and diverse
customer base, which is a very positive sign for the Company from stability
& growth point of view. The addition of new products and increase in
volumes is the reason behind the strong top line growth in the current year.
Apart from
manufacturing of Lights company is also engaged with solutions for the whole lighting
of the buildings, amenity etc.
Apart from
manufacturing of Lights company is also engaged with solutions for the whole lighting
of the buildings, amenity etc.
Apart from
manufacturing of Lights company is also engaged with solutions for the whole lighting
of the buildings, amenity etc.
Lighting Design & Consultancy Services with a wide range of
excellent products for professional applications, Starlite also provides to its
customers, additional services like Lighting Design Support & Suggestions.
We can provide solutions for projects, based on need, requirement &/or
standards applicable. We can provide design solution various application
including:
1.Buildings
2.Showroom
3.RetailOutlets
4.Residences
5. Road & Street Lighting
INDUSTRY OUTLOOK
The Indian Lighting industry is progressing faster than expected in the
adoption of energy efficient lighting products to reduce India’s lighting power
consumption & bring it closer to that of more developed countries. There is
tremendous demand of domestic capacity for LED manufacturing &testing. The
government should make the required funding and infrastructure available so
that we can capitalize on such an opportunity. This could give a fundamentally
strong and positive boost to the country’s economy.
Starlite continues to focus on
increasing its manufacturing capacities and product base to meet the increasing
demand from various sectors & customers. The Company is targeting some
large government projects, which could help the company surpass its targets and
improve its top and bottom line.
PLEASE NOTE: THIS IS NOT A REASERCH
REPORT AND NOT ANY RECOMMENDATION REPORT.
Company website: Click here
FINANCIALS AND OUTLOOK
Company shares are trading in BSE.
Promoter holding: 51.67 % as on Dec qtr.
Company posted 25.4 Cr top line in Dec
Qtr.
Net profit is 2.14 Cr bottom-line in Dec
Qtr.
Operating margins were improved.
QOQ both Topline and Bottom-line has
significantly improved.
Stock is trading at Rs 55
Company is mainly engaged in the
business of manufacturing of LED and CFL lamps and lighting solutions. LED
lighting sector growing very fast as the awareness of this is becoming more and
more due to its costs and benefits. Govt initiatives towards usage of LED/CFL bulbs
in rural and urban area is a huge positive for the company.
By considering above, and performance of
the company over QOQ in both topline & bottom-line has shown the strength
of the company.
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”
