SHILP GRAVURES LIMITED (513709) - PORTFOLIO STOCK

Today I am expressing my view on one stock from industrial machinery/Flexible packaging segment stock

SHILP GRAVURES LIMITED (513709)

Shilp Gravures is India's pioneer and undisputed leader in Electro-Mechanical Engraving, with a substantial market share of the flexible packaging industry.

Electro-Mechanical Engraving is a precision technology, and Shilp Gravures has assimilated the world's best equipment and infrastructure available in the field at its plant.

The company has focused all its activities and quality pursuits around that core knowledge that at the end of it all, it is part of a marketing / branding exercise. So, Shilp Gravures plans every job from the creative stand point.

And that is the core mantra that has empowered Shilp's rapid growth, and given it the confidence to visualize a global activity charter for the immediate future

Shilp Gravures began operations in 1989 as an Engraving house with chemical etching facility.It had inherent cutting edge, having founded by a team of technocrats led by the visionary Ambar Patel.In 1993, Shilp put up state of art electromechanical engraving facility.In the years that followed Shilp upgraded its technology by investing in best of the machinery and software.

Shilp Gravures is India's pioneer and undisputed leader in Electro-Mechanical Engraving, with a substantial market share of the flexible packaging industry.

Electro-Mechanical Engraving is a precision technology, and Shilp Gravures has assimilated the world's best equipment and infrastructure available in the field at its plant.

The company has focused all its activities and quality pursuits around that core knowledge that at the end of it all, it is part of a marketing / branding exercise. So, Shilp Gravures plans every job from the creative stand point.

And that is the core mantra that has empowered Shilp's rapid growth, and given it the confidence to visualize a global activity charter for the immediate future.

COMPANY PRODUCTS

Company products fall mainly into 5 segments.

1. Gravure Cylinders

2. Flexo

3. Base Shell

4. Pre- Press

5. Embossing.

1. Gravure Cylinders.

Shilp offers first time in India following Gravure cylinde in one roof. There are four products in this category.

Electro-Mechanically engraved , Mechanically Engraved, Chemically Itched and Laser Technology.

Flexo Technology is one of the Premium products of Shilp.

Shilp flexo plate processing unit is equipped with DuPont Cyrel 2001P, one of the world’s finest digital plate processors producing plates of up to 42x60 inch / 106x152 cm – becoming the first to produce this size which is the largest available in South Asia. The machine itself is a complete inline processor with exposing, punching, processing, drying and cutting operations. 

Esko Suite 7 based work flow clubbed with the digital imager CDI ensures global quality output ideal for label and packaging industries. While an Esko BG 3800 image setter provides direct film output of 800 mm x 1100 mm (31.5 x 43.3 inch) size. a consultant also provides UV coating plates, embossing blocks, letterpress plates, etc.

Base Shell  is one of the traditional products of Shilp.

Shilp pursuit of excellence, desired quality levels of rollers could only be achieved if the raw material is of set parameters.

The quality of the steel rollers plays an important role in the subsequent processing and its performance on the printing machine From the quality of the cold extruded carbon steel seamless pipes to the hardness required.

Uncomparably, hi-tech & sturdy in-house infrastructure, includes hacksaw and bend saw metal cutting machines, lathe machines, cylindrical balancing machines, As well as high precision measuring instruments fir final quality check.

Pre Press

The designs in any digital format are colour-corrected on latest graphic software under high-end Pre-press shop from EskoArtwork, To ensure precision. This powerful combination of technology and expertise helps us to reproduce designs comparable to any around the globe.

Embossing

This segment contains embossed rollers.

APPLICATION OF THE COMPANY PRODUCTS ARE FOR FOLLOWING INDUSTRIES

Company Website :Click here

OVER VIEW

Company shares are trading in BSE.

Promoter holding in company 60.52 %( Increased from Dec Qtr)

Company posted 16.69 Cr top line in March qtr.

Operating Margin 16.51 % 

Net profit is 1.70 Cr in March qtr.

Stock is trading  low PE 11.8  as compared to industry PE of 26.

Dividend (%) last year 12 %

Reducing Debit company.

Stock is trading at Rs 124.

Stock is seems to be undervalued as compared to its peers. Company’s flexible packaging division is doing well as compared to previous qtr. As the allied customer group of the companies are growing in growth phase, this stock will show the same growth .Considering this, stock will give good returns to the investors in near future.

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”