Dear Investors, Today I am expressing my view on one Industrial machinery segment stock.
CENLUB INDUSTRIES LTD (522251)
Cenlub Industries Limited
(CIL) is engaged in the manufacture of centralized lubrication systems for
machinery, plant and various manufacturing industries. The Company was
incorporated in 1977 as a proprietorship firm named Cenlub Engineers. Company
has become public under the Companies Act, 1956 by Registrar of Companies, Delhi
& Haryana in the year 1992.
Lubrication is a prime
requirement for all machines, equipment’s or plants as it adds to the life and
efficiency of the machine by reducing wear and tear of its parts. The
lubricating oil forms a film between the moving parts which results in lesser
friction and correspondingly less heat generation in the machine, thereby
keeping the working temperature of machine parts within safe operating limits.
Wear and tear of parts is thus greatly reduced resulting in fewer breakdowns,
greater machine utility, lower maintenance cost and longer machine life.
CENLUB is synonymous with CENTRALISED LUBRICATION answering
to all problems related to friction in machines, plants and equipments.
The Company has three independent
manufacturing units. Company is having its manufacturing plants in Faridabad, Bangalore
and Rajkot.
Apart from the three plants,
CIL is having 17 offices all over India to take care of Sales and Service i.e.
Aurangabad, Ahmedabad, Bangalore, Bhuvaneshwar, Dhanbad, Chandigarh, Chennai,
Coimbatore, Faridabad, Hyderabad, Jamshedpur, Kolkata, Mumbai, Pune, Rourkela,
Rajkot and Visakhapatnam.
PRODUCTS
Company manufactures number of
equipment’s in the field of lubrication. Following are the some of them.
Single Shot Centralised
Lubrication System for MACHINE/MACHINE TOOLS is an efficient and safe method
for a predetermined amount of oil to be delivered at various lubrication points
of a Machine/Equipment from a centralised source. It is a TOTAL LOSS SYSTEM and
does not require any return line for collection of used OIL.
Manual
Pumps
Motorised
Pump
Metering Cartridges
Manifolds
Fittings & Tubings
Controllers & Timers
Manual Pump: Company is having
mainy 8 variety of this type of products for various applications and duty. It
is generally used in any manufacturing industries and they are hand operated. It
has a reservoir to fill the lubricant each model is having different capacities
of the lubricant storage.
  
Motorised Pump: This is
electrically driven and automated lubrication system. Which does not require
human intervention regularly. Here also different models are being manufactured
by CIL for different applications.
   
Apart from this company
assembles the accessories which are required for these system which mainly includes,
Cartridges, manifolds, fittings and controllers.
Dual Line Lubrication system:
This is much more mechanized way of lubricating the equipment’s. This has
mainly two types Loop type and End type and having seven different models in
it.
Company is serving to the following industries and their major clients are as follows.
MACHINE TOOLS
Practically all the machine tool manufacturers,
particularly CNC machine tool manufacturers have adopted our system as Original
Equipment, some of them are Batliboi, HMT, Windsor ACE Systems etc.
STEEL PLANTS
CIL supplying Centralised Lubrication System to
various steel plants and have proven record for the same. Some of major
customers are - SAIL, JINDAL ,TISCO, ELECTROSTEEL, MUKUND and many more
SPONGE IRON PLANTS
Recently there is a boom in Sponge Iron Plants and all
manufacturers are born for CIL products. Company fully equipped with to meet the
lubrication requirement of this segment. Some of major customers are -
JINDAL, ANKIT METALS & POWER, NRSPONGE and many more.
CEMENT PLANTS
CIL supplying lubrication systems to various Cement
Plants and have proven record for the same. Some of major customers are:-
ACC, JK, SAGAR CEMENT, SHREE CEMENT, ZUARI, GUJ AMBUJA and many renowned cement
industries.
SUGAR PLANTS
CIL is the original equipment supplier to Sugar
Plants in India as well as abroad and some of them are:- AP SUGAR, BAJAJ
HINDUSTAN, MAWANA SUGAR, DALMIA SUGAR and many more.
POWER PLANTS : CIL serves power plants also major customers are COAL INDIA, NTPC, TAMIL NADU STATE ELECTRICITY etc. PAPER PLANTS
CIL supplying Lubrication System to various Paper
Plants, and some of major customers are ANDHRA PAPER, STAR PAPER MILLS, MOHIT
papers etc.
MISCELLANEOUS: CIL products
are extensively used in MARUTI, BOSCH etc.
EXPORT
Initially for two decades the company was busy in
catering to the Indian market and prior to the inception of the company,
basically lubrication units were imported. Having catered efficiently the
Indian market, the company started contributing to the world market. Now the
company is exporting its products to many countries.
Company website: Clickhere
FINANCIALS AND OUTLOOK
Company shares are trading in BSE. Promoter
holding in company 43.13%
Company posted 11.73 Cr top line in
March qtr.
Net profit is 1 Cr in the March qtr.
Company pasted 35.5 Cr Top line on
yearly basis as compared to 31.3 Cr previous year (13.4 % increase YOY basis) -
consolidated
Profit has jumped to 1.74 Cr from 1 Cr
(74 % increase YOY basis) - consolidated
Stock is trading low PE (12) as compared
to industry PE (28).
EPS 4.69
Company is having reducing debt, Debt to
equity is 0.7
Stock is trading at Rs 59.
Company has shown good performance on
YOY basis, operating margins were improved compared to last qtr. Company stock is trading PE is low as compared to industry.
Company’s products are having a huge
demand in all major manufacturing sector. New products are having more demand
in Sponge iron industries are boost for the stock. Stock will rerate to its
industrial peers and industrial segment. Export business is also doing well and
continue to do well in future also. By considering above facts and performances
stock will definitely bring more returns to investors in coming days.
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”
| |
