HINDUSTAN ADHESIVES - GROWING BIG

Today I am expressing my view on plastic product related company.

HINDUSTAN ADHESIVES LTD (514428)

This is Bagla group company, mainly in the business of Packaging Tapes,Convenience Tapes,Security Tapes and Pololyfin Shrink films.

Established in 1988, Bagla Group ventured into manufacturing products for the fast growing Packaging Industry with establishing Hindustan Adhesives Limited - A Specialty Adhesive Coating Company with the then latest technology of Acrylic emulsion based coating and Hot Melt Adhesive coatings.

The Company is the only integrated producer of Adhesive Tapes having the specialized Double Bubble Film technology for producing specialized BOPP Adhesive Tapes with both Acrylic and Hot-Melt technology. It also has multiple printing equipments, slitting and spooling facilities to make many value added import substitute products for both the domestic and international markets. The Company also produces many types of specialty tapes like Filament Tapes, Carry Handle Tapes, Tear Tapes, Tamper evident Tapes and many more!

Company has adopted Double bubble process Technology for shrink fims.

Advantages:

1. The Double Bubble film has a very High tensile strength allowing it to carry heavier loads
2. The Double Bubble film has a balanced orientation giving the film equal strengths in all directions.
3. The Double Bubble film has excellent clarity and optical properties thereby allowing 100% visibility of the packaged product!
4. The Double Bubble film can be efficiently customized with recipe controls for quick change over to give every customer their own personalized product!

Shrink Machines,mainly model of Pratika is one of the good shrink machines from the company.

Company posted 18 Cr in the Dec qtr with 15% operating margin & 0.34Cr bottom line.

Promotor holding is 64% in the company.Stock is trading in the BSE @ Rs 75 levels.As the packaging industries are growing fast due to the e-commerce & online shopping business, Hind adhesives has potential to grow.

Company is trading at low PE around 10 as compared to its peers.

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”