SAM INDUSTRIES LTD (532005) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on one Industrial goods company.

SAM INDUSTRIES LTD (532005)

Sam Industries is a Madhya Pradesh located company incorporated in 1994. Initially till 2012 company was mainly engaged in Soya bean processing unit in Madhya Pradesh.

Now company is diversified its portfolio into Welding and Real Estate business. With vertically integrated production facilities, Sam Industries continuously strives to maintain and improve its products by ensuring that the entire process from selection of raw material through the production process and up to the delivery of the final products undergoes stringent quality tests. This is also supported by a strong Research and Development department and state-of-the-art manufacturing facilities.

Company is mainly engaged in manufacturing of different types of Welding Electrodes. Sam Industries Limited, is known for superb quality Welding Consumables. The company is primarily engaged in the manufacturing and supply of export quality Welding Consumables ranging from Welding Electrodes to Welding Wires.

Company’s product range includes:

Manual Metal Arc Electrodes

Solid Wires for TIG welding

Solid wires for MIG/MAG welding

Flux Cored Wires (FCAW)

Metal Cored Wires (MCW)

Wire/flux combinations for Submerged Arc (SAW)

Sam industry have Quality Management Systems for design, development and manufacturing certified by various agencies. Products are manufactured to conform with the current issues of BS, BS EN, and AWS-ASME and DIN standards where applicable. Full test certificates are supplied with every order. All test laboratories used for external, mechanical and specialist testing are NAMAS approved.

Company diversified into Real estate also it is picking up as the sector is mostly standstill now. Main business revenue from Welding consumables only.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 74.83% as on sept qtr. (Increased from last qtr.)

Company posted 2.97 Cr top line in sept Qtr.

Net profit is 0.47 Cr bottom-line in sept Qtr.

Book value: RS 36.05

Debt free Company.

Stock is trading at Rs 19

PE is low as compared to industry and also from peers.

Company stocks are trading lower than the book value. Promoters have increased their stake in the company, knowing the strong business outlook. Debt free company.

PE is low and stock is trading significantly below book value, hence the stock will catch up the momentum and fetch investors good returns in a days to come.

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”