SIMMONDS MARSHALL LTD (507998) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on one Auto ancillary stock.

SIMMONDS MARSHALL LTD (507998)

Simmonds Marshall Limited is an India-based company. The Company is engaged in the business of manufacturing of nyloc self locking nuts (industrial fasteners). Its products include cleveloc self-locking nut, nyloc self-locking nut, u-nuts and wheel nuts, cap nuts, castle nuts, hose fitting nuts, flange nuts, cage nuts and weld nuts.

Simmonds Marshall Limited was incorporated in 1960 as a Private Limited Company in technical and financial collaboration with Firth Cleveland Fastenings Ltd., U.K. holding 51% of the equity of the company. In 1986, the company went public.

The Company caters to the automotive and industrial sectors and supplies to all the automobile manufacturers in India, as well as original equipment (OE) suppliers. The Company offers products to General Motors, Fiat, Honda, Caterpillar, Suzuki, Dana and New Holland.

PRODUCTS

Company products mainly fall under nuts and fasteners category. Over a vast experience in this field company manufactures following products.

1.    Cleveloc & All Metal Self Locking Nuts

2.    Nylon Insert Self Locking Nuts

3.    U-Nuts

4.    Wheel Nuts

5.    Dome Cap Nuts

6.    Castle & Slotted Nuts

7.    Hose Pipe Fitting Nuts

8.    Flange Nuts

9.    Cage Nuts

10. Weld Nuts

11.  Bolts & Studs

Most of the products are used in Automobile industries. These nuts incorporate a special moulded Nylon Insert, the internal diameter of which is smaller by a predetermined degree than the bolt thread.

The Nyloc nut is locked and made completely vibration proof by two independent forces:

The close contact and friction set up and maintained between the entire length of the working face of the threads, due to the encircling “Wedge” effect of the Nylon insert.

The Nylon insert being highly compressed “grips” the bolt threads with a sustained and considerable inward pressure.

CUSTOMERS

Company has a strong customer base from reputed automobile industries. Following are the few major customers of the company.

PLEASE NOTE: THIS IS NOT A REASERCH REPORT AND NOT ANY RECOMMENDATION REPORT.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 56.67 % as on Dec qtr.

Company posted 46.17 Cr top line in Dec Qtr.

Net profit is 2.87 Cr bottom-line in Dec Qtr.

Operating margins were improved.

Regular dividend paying company.

Debt to equity ratio: 0.60

Stock is trading at Rs 110

Company is mainly engaged in the business auto ancillary products to major Automobile industries. As this sector is evergreen and considering the high demand for this sector in future is a huge positive for the company.

By considering above, and performance of the company over QOQ in both topline & bottom lines have shown significant growth. Company is growing constantly over the years.

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”