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Research Report
INDUSTRY PROFILE
INDUSTRY STRUCTURE & DEVELOPMENT : Consumption of Tinplate in India at approx 0.30-0.40 kg / capita is much lower compared to 8 to 12kg / capita in many developed nations. Even a similar developing economy like China, consumes 1 kg / capita. With expectation of economic growth, the company estimates that the packaging industry in India is also poised for growth and hence,it is expected that tinplate demand will also grow, provided of course the indigenous players undertake robust development efforts. However, The Company believes that there is rampant use of sub- standard imported tinplates and repetitive use of cans for multiple uses though hygiene and existing laws require only fresh tin cans to be used. The Government gazetted a Steel Quality Control Order in February 2009 but later dropped its implementation. The customs duty for import of tinplate into India continues to remain at a very low level of 5% and in fact for a brief period in 2008 it was even made zero. The business has also been impacted by the changes in the business environment during past 3-4 years. INDUSTRY OUTLOOK : The resilient outlook of the metallurgical industry in India has attracted many foreign investments. There is higher consumption of metals in the Asia/Pacific region, especially China and India. This is due to per capita consumption rising towards U.S./European levels. The overall industry structure is rather concentrated, with a few producers representing a high proportion of sales. There are vastly improved balance sheets with solid liquidity, which is starting to create some merger and acquisition activity. which could theoretically double metals demand in these regions in the longer-term.
HIGHLIGHTS
TCIL is today the largest indigenous producer of tin coated and tin free steel sheets in India, enjoying 35-40% market share and undoubtedly the industry leader for 85 years. Management Services Division of TCIL has been certified under ISO/IEC 27001:2005 standard by BSI Management Systems, ISO/IEC 27001:2005 standard provides controls for managing information security. The Tin Plate Company of India Limited (TCIL), Jamshedpur won the prestigious CII-EXIM Bank Prize for business excellence for the year 2008. The Prize was given during the inaugural session of the CII's 16th Quality Summit held at Bangalore on 6th November, 2008. The Prize and the Citation were received by Mr. B.L. Raina, Managing Director TCIL and Mr. Ranjit Sinha, Chief Divisional Manager (Business Excellence). TCIL bagged the J N Tata Total Quality Award - Over all best Associate Company. TCIL was the first to set up a combination line capable of producing both Electrolytic Tin Plate (ETP) and Tin Free Steel (TFS) in India. The company exports about 20-25% of its production directly to end-users (can-makers) and its products are well accepted in the markets of SE Asia, Middle East and some developed countries in Europe. Tin Plate Company of India Limited is the first Company in Jamshedpur which has the distinction of being certified to the Integrated Management System Assessment series (ISO-9001:2008, ISO-14001:2004 & OHSAS-18001:2007).
Research Report
FINANCIALS OF TIN PLATE INDIA LTD
Trailing 4th Quarter Results-June 2008/2009 Amount in Crores
Particulars
Net Sales Other Income Total Income Expenditure Operating Profit Depreciation Tax Fringe Benefit Tax Interest Net Profit/Loss Reserves (March) Equity (March) Earnings Per Share (EPS) Cash Earning Per Share (CEPS) Face Value (Rs.) PE Ratio PC Ratio Price as on 11/12/2009 Dividend% & Yield in 2009 Dividend% & Yield in 2008
2009
738.91 9.52 754.69 596.44 158.25 33. 27 -3.73 0.32 32.83 61.92 46.04 71.98 8.60 13. 22 10 7.63 4.96 65.65 12.50% &1.90 0.00 % & 0.00
2008
489.31 7.61 498.44 429.36 69.08 22. 95 4.4 0.57 13.03 14.22 30.80 28.92 4.91 12.85
%Change
51.0 25.1 51.4 38.9 129.1 45.0 -183.8 -43.9 152.0 335.4 49.48 148.89 -
Networth
(Rs .Cr)
OPM (Rs.Cr)
NP (Rs.Cr)
CP (Rs.Cr)
EPS (Rs)
ROCE (%)
RONW (%)
Dividend (%)
10.54 16.08 6. 53 1. 36 6. 52 -
Research Report
MARKET DATA
Industry Market Cap (as on 11/12/2009) 52 week high/low T. T. Q. BSE/ NSE (as on 11/12/2009) BSE code & Group NSE code Reuters Code Bloomberg Code Face Value Free traded (No of Shares) Listing Capital Employed in Mar.2009 & 2008 Current Ratio in Mar. 2009 & 2008 Debt Equity Ratio in Mar.2009&2008 Inventory Turnover Ratio in Mar.2009 & 2008 PBIDTM (%) Ratio in Mar.2009 & 2008 APATM(%)Ratio in Mar.2009 & 2008 Net worth in Mar.2009 & 2008 Latest Book Value (Rs) Beta ISIN Code Metal - Others 472.58 68.90/14.51 459404 504966 & B TINPLATE TINP.BO TPC IN 10 19257790 NSE,BSE 459.27 & 383.77 0.59 & 0.56 1.35 & 1 23.7 & 14.6 17.71 & 11.03 5.31 & 1 74.96 & 59.72 37.40 0.53 INE422C01014
Promoter 34% Public 32% Foreign 0% Institutions 10%
TOP TEN SCRIP RECOMMENDED BY RESEARCH COMMITTEE FROM DEC. 2008 Vs. BSE.500 COMPARISON:
RANK. NO 1 2 3 4 5 6 7 8 9 10 COMPANY NAME RECOM PRICE 10 163 20 116 275 48 49 230 320 923 RECOM DATE BSE 500 HIGH AFTER RECOM DATE 03/11/2009 03/11/2009 05/10/2009 02/06/2009 18/11/2009 03/11/2009 01/12/2009 01/12/2009 01/12/2009 03/11/2009 HIGH AFTER RECOM 49.4 778 71.4 360 849 144 143 665 884 2500 BSE. 500 BSE.500 GAIN/ % LOSS (%) Changes 96.18 108.19 74.658 84.845 84.55 93.83 106.64 67.79 94.67 100.03 394.00 377.40 257.00 210.345 208.72 200 191.83 189.13 176.25 170.85
ESSEL PROPACK LTD JINDAL STEEL & POWER GUJARAT NRE COKE LTD PANTALOON RETAIL KOTAK MAHINDRA BANK HINDALCO IND LTD ALLAHABAD BANK TATA MOTORS STERLITE IND LTD SBI
01/12/2008 06/03/2009 02/04/2009 03/03/2009 30/01/2009 21/11/2008 23/01/2009 13/04/2009 23/03/2009 13/03/2009
3223 3037 3737 3081 3426 3262 3205 3947 3402 3161
6323 6323 6527 5695 6658 6323 6623 6623 6623 6323
STATEMENT OF CAUTION: INVESTORS ARE ADVISED TO EXERCISE CAUTION AND INVEST IN PHASED MANNER.
Research Report
FULL YEAR: CONSOLIDATED RESULTS : TIN PLATE INDIA LTD
Full Year 200903 Gross Sales Excise Duty Net Sales Other Operating Income Other Income Total Income Total Expenditure PBIDT Interest PBDT Depreciation Tax Fringe Benefit Tax Deferred Tax Reported Profit After Tax Extra-ordinary Items Adjusted Profit After Extra-ordinary item EPS (Unit Curr.) EPS (Adj) (Unit Curr.) Calculated EPS (Unit Curr.) Calculated EPS (Adj) (Unit Curr.) Calculated EPS (Ann.) (Unit Curr.) Calculated EPS (Adj) (Ann.) (Unit Curr.) Book Value (Unit Curr.) Dividend (%) Equity Reserve & Surplus Face Value Public Shareholding (No Of. Shares) Public Shareholding (% in Equity) Pledged/Encumbered No. of Shares Pledged/Encumbered - % in Total Promoters Holding Pledged/Encumbered - % in Total Equity Non Encumbered No. of Shares Non Encumbered - % in Total Promoters Holding Non Encumbered - % in Total Equity PBIDTM(%) PBDTM(%) PATM(%) 664.56 4.27 660.29 1.63 9.43 671.35 555.53 115.82 25.09 90.73 28.06 0 0.63 27.24 34.8 0 34.8 6.76 5.39 12.03 9.59 12.03 9.59 0 13 28.92 46.04 10 19482790 68 0 0 0 9311111 100 32.33 17.54 13.74 5.27 Full Year 200803 VAR [%] FullYear 402.32 3.48 398.84 2.54 10.19 411.57 368.26 43.31 12.64 30.67 22.6 0.84 0.5 2.79 3.94 0 3.94 1.36 1.08 1.36 1.09 1.36 1.09 0 0 28.92 30.8 10 19756889 67 0 0 0 9248911 100 32.12 10.86 7.69 0.99 65.2 22.7 65.6 -35.8 -7.5 63.1 50.9 167.4 98.5 195.8 24.2 0 26 876.3 783.2 0 783.2 397.1 399.1 784.6 779.8 784.6 779.8 0 0 49.5 -
Research Report
TECHNICAL ANALYSIS TINPLATE :Tinplate share price after making a high of Rs 69 had a big fall to Rs 15 in March 09 since then recovered to Rs 69 double top; if share price crosses Rs 70 then first target would be Rs 88. Second target will be Rs100. Tinplate share price has Long term trend (200DMA) at Rs 40.70, Medium term trend (50 DMA) at Rs 59. One can accumulate the share on the dip or buy at break out, above Rs 70 with a stop loss of Rs 59.
Script Current Price High Price in Jan 2007 Long Term Trend (200DMA) Medium Term Trend (50DMA) First Target Tinplate Rs 67 Rs 69 Rs 40.70 Rs 59 Rs 88 and next will be Rs 110
Readers Please note that, hourly chart of Nifty will be covered in place of daily Nifty chart with comments.
Research Report
TECHNICAL ANALYSIS
NIFTY :Nifty opened during week at 5108 & traded between 5051 to 5182 a variation of 131 points i.e, 2.59%. Nifty is having a resistance around 5180, with the support around 4800. Nifty has to break any of these levels to show direction so far market has been resilient expected to break 5180 to reach next level of 5300 to 5400 points.
Index Nifty Open Traded between Variation Nifty support Nifty Resistance Nifty 5108 5051 to 5182 131 points i.e.2.59 % 4800 points 5180 Points
Readers Please note that, hourly chart of Nifty will be covered in place of daily Nifty chart with comments.
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