KRITI INDUSTRIES (INDIA) LTD (526423) - STOCK OF THE WEEK

Dear Friends, Today We are discussing about one Technical Plastic product company.

KRITI INDUSTRIES (INDIA) LTD (526423)

Kriti Industries (I) Limited (KIIL) is a flagship company of Kriti group an ISO 9000 company. KIIL was originally incorporated in 1990 as a as a private limited company. Initially company was formed as  Kriti Plastics Private Limited, subsequently converted into Public Limited Company.  

Company is having brand name of KASTA in their product.

KIIL at present possesses 18 extrusion lines for PVC pipes, 14 extrusion lines for HDPE & Drip, 20 Injection moulding machines and state of art facilities.  The Company has expanded its range of products from small diameter pipes to 630 mm diameter in all classes and ratings. It also has facilities for producing a variety of PVC/HDPE fittings. KIIL has been experiencing substantial growth in PVC fittings segment.

KIIL manufactures pipes for Potable Water Supply, irrigation purposes, building, constructions pipes etc. “Kasta” brand, which is well known in Central India. The major marketing areas are M.P. and adjoining districts of Maharashtra and Rajasthan, where majority of the Plastic Division’s sales take place.

PRODUCTS

Company product segment falls under following categories. Agriculture, Micro irrigation, Telecommunication and Building materials.

1.    Agriculture.

KASTA brand is well known in the central part of India. In this category company manufactures different grades of pipes & fittings. Kasta pipes have carved a niche and earned the trust of farmers across the nation for their durability, dependability and excellent flow characteristics.

2.    Micro irrigation.

This is the sector of decade, and booming segment of the company. As the scarcity of water and its management has become difficult, Micro irrigation system has changed the entire agriculture theme. Most of our agricultural areas strive for water & electricity. Eradicating these major problems Micro Irrigation System ensures better productivity in lesser time at minimal usage of electricity, water & fertilizers.

Company manufactures Sprinkler systems and drip irrigation system in this segment.The company has also entered in a big way into drip irrigation sector and with the growing agriculture sector, business prospects in this segment is very bright.

3.    Telecommunication.

This is the sector which is more active now and continue to be. Need for high quality casing to safely house and protect the miles of optical fiber and telecom power cables is very important. As this requires protection of Optical fibers, Company manufactures different range of products. Brand name for Telecom ducts are under name of KORESIL.

For laying optical fiber cables HDPE ducts are used now-a-days. The major buyers are Department of Telecommunications, Reliance Telecom, Bharti Telenet, Railways, Defence Department etc.

4.    Building materials.

This is the one sector which is growing rapidly nowadays. As the technology also grown in the construction segment CPVC and UPVC pipes are major products in this segment. Company also manufactures drainage pipes, Garden pipes and CPVC solvent cements.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 65.76%

Company posted 162.93 Cr top line in June Qtr.

Net profit is 3.12 Cr bottom-line in June Qtr.

Stock is trading at par PE compared to industry & its major peers.

Dividend paying company.

Stock is trading at Rs 38

Company is mainly engaged in the business manufacturing HDPE , CPVC and telecom ducts. Company operating in the segments like Micro irrigation and Telecom are growing rapidly nowadays. Govt push to agriculture and construction of low cost housing are big boost for the revenue for the company. Company growth is in a good track and reflected in the performance of the company top line growth over the qtrs.

Considering above and performance of the company stock will catch the momentum, rerate and will give handsome 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”