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.
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”
