FRONTIER SPRINGS LTD (522195) - VALUE STOCK

Today I am expressing view on one Automotive sector stock.

FRONTIER SPRINGS LTD (522195)

Established in 1981, Frontier Springs Ltd. started with the production of Leaf Springs and Laminated Bearing Springs for Automobiles and Railways. Steadily as the railways modernized, so did Frontier and within a few years had expanded company's plant to accommodate the high demand for Coil Springs for wagons, coaches, and locomotives for the Indian Railways and many more clients.

Frontier team can design springs using design software by Institute of Spring Technology, Sheffield as per the specifications given by the clients, they been preferred manufacturers for the following springs with the Indian Railways

• Springs for LHB Coaches
• Suspension Coil Springs for Freight Stock
• Suspension Coil Springs for Coaching Stock
• Suspension Coil Springs for Diesel and Electrical Locomotives (EMD, WAG 9, WAG 7, etc.)
• CLH and VLH Coil Springs for Power Sector (BHEL)
• 
  
• Frontier Springs Ltd. comprises three different units all working in synergy to fulfill the demands of clients and also developing new products periodically. 
• 1. Spring Division - In Kanpur, Uttar Pradesh and Paonta Sahib, Himachal Pradesh
• 2. Forging Division - In Kanpur, Uttar Pradesh
• 3. Colour coated roofing sheet Division - In Paonta Sahib, Himachal Pradesh

MAJOR CLIENTS:

• Indian Railways

• Chittranjan Locomotive Works
• Diesel Locomotive Works
• Rail Coach Factory
• Integrated Coach Factory
• Bharat Earth Movers Limited
• Vehicle Factory, Jabalpur(Defence)
• Bharat Heavy Electricals Limited (BHEL)
• Texmaco Limited
• Simplex Casting Limited
• Crompton Greeves Limited
• National Thermal Power Corporation
• Besco Ltd.

1. Spring Division.

Frontier is manufacture of Hot Coil Springs supplying to Heavy Engg. Industries, O.E. Manufacturers in India & Abroad in order to obtain better space utilization, more fatigue and weight reduction, different type of Coil Springs are manufactured at Frontier. 

Range of Coil Springs varies from 10 mm wire dia to 65 mm wire dia with maximum free height upto 1000mm. 

Variable Load Rate as well as fixed Load Rate Coil Springs are manufactured by high quality Chrome moly and Chrome Silicon Steel Rods duly crack detected and Epoxy Powder Coated.

2. Forging division

Frontier manufacturers many forged parts used in railways.

3.Colour coated roofing sheet division 

This is mainly for Indian railway wagons.

Research and Developement

The high level of quality attached to all the products is the result of careful planning and scrupulous testing of the process and an integrated quality assurance system.

Severe directives regarding the methods, procedures bound by strict regulation, qualified testing and above all the dedication by top management to pursuing quality assurance objectives ensure that the customer is supplied with a gauranteed and certified product.

Company posted 12.5Cr top line in the Dec qtr with 11% OPM and 0.5 Cr bottom line. Company trading at very low 10.5 PE where as industry PE is 24.Promoter holding in the company is 51%.

Govt spending and more focus on Railways and defence sector is huge positive for the stock.

Stock is trading in BSE at Rs 53.

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”