TARGET ACHIEVED (121%) - SPECTRA INDUSTRIES LIMITED
DATE: 13/06/2017
  • COMPANY NAME : TARGET ACHIEVED (121%) - SPECTRA INDUSTRIES LIMITED
  • Description :

     

    Dear Reader,

    Today 29/12/2017, Spectra Industry has touched 42 Rs and was recommended to buy at 19 Rs on 13th June 2017 for the target of 40 Rs.

     

    within 6 months it is giving 121%return......Fantastic return

     

    Book the profit as my given target 40 Rs achieved today.

     

    Happy investing!!

    Kamlesh

    ===========================

    Recommendation: Buy

    Hold 1 Year

    Target: 40 Rs.

     

    CMP: 19.08 Rs.

    BSE Code: 513687

    Market Capital: 14 Cr.

    Face Value: 10

    52 Week Low / High: 11.5/22.5

    Book Value: 19

    Price/Book Value: 1.04

    Promoter Pledge: Nil

    Dividend Yield (%): 0.0%

     

    Company's Overview:

      • Spectra Industries Limited was incorporated as a Public Limited company on 23rd July, 1992 in the State of Maharashtra and obtained a certificate of commencement of business on 14th August, 1992 and is operating through its own premises located at Malad West, Mumbai.
      • The Company had set up a Commercial Press Shop at Murbad (near Kalyan, 80 kms from Mumbai) having infrastructure for processing large automobile sheet metal components such as, all skin panels like roof panel, bonnet, dicky, doors, wheel fenders, bumpers, petrol tanks etc.
      • These automobile parts were manufactured for various automobile companies especially FIAT but due to closure of plant of FIAT in India the company’s manufacturing activities were reduced considerably.
    • During the year 2010, the company has taken up the dealership business of Mahindra Navistar Automotive Limited.
    • The Company has established a proprietary unit “Spectra Automotive” to cater needs of sales, service and spares of

    Light Commercial Vehicles in the range of 4 tones gvw to 6 tonnes gvw

    Heavy Commercial Vehicles like goods vehicles and

    buses in the range of 25 tonnes gvw to 49 tonnes gvw in the territory of entire Mumbai, Navi Mumbai, Thane and Raigad district.

    • It includes Construction tippers, Haulage vehicles and Tractor trailors.
    • The Company has set up a workshop at Mira Road and Nerul, and soon starting another workshop at Ajiwali, Panvel, Navi Mumbai.

     

    Current Business 

    • The company is currently continuing with Automobile parts manufacturing activities on a small scale and supplementing its income by doing trading business in various items like chemicals, food grains, steel, coal and various other commodities.
    • The company has secured dealership of Mahindra Navistar Automotives Limited and has already started sales and service workshop at Mira Road, Thane and another such establishment at Panvel, Navi Mumbai which is on completion stage and will start soon.
    • With brand name of Navistar and Mahindra Group and rich experience of Promoters in the business the company is confident to perform well in future.

     

    Dealership

    Mahindra Navistar

    Heavy Commercial Vehicle & Light Commercial Vehicle (Exclusive dealer for Entire Mumbai, Thane and Raigad District).

     

    Trading Business in

    Steel

    Chemicals

    Organic & Inorganic Commodities

    Coal

     

    Manufacturing

    Brake Shoe

     

    Spectra Industries Limited Shareholding Pattern:

     

    Spectra Share holding Pattern

    Description

    Percent of Share (%)

    Promoters

    55.735

    Public

    44.265

    Total

    100

     

     

    Focus on - Financial Results March 2017:

     

    Spectra Industries Limited

     

    Quarter Ended

    Year Ended

    Particulars

    31.03.2017

    31.03.2016

    31.03.2017

    31.03.2016

    Revenue from Operations

    5251.72

    2336.27

    13082.28

    12143.94

    Other Income

    163.54

    55.71

    550.45

    141.94

    Total Revenue

    5415.26

    2391.98

    13632.73

    12285.88

    EBITDA

    103.62

    161.47

    368.45

    223.76

    PBT

    62.6

    100.72

    173.07

    44.96

    PAT

    14.64

    78.92

    125.11

    23.16

    EPS

    0.21

    1.11

    1.77

    0.33

     

     

     

    Investment Rational:

    1. Spectra is trading near Book value and below Net sale (184 Rs) of the 2016-2017 year.
    2. Spectra industry PAT jumped to 125.11 Cr compare to previous year 23.16 due to other income increased.
    3. Spectra industry EBITDA jumped to 368 Cr compare to previous year 223.76
    4. The company has secured dealership of Mahindra Navistar Automotive Limited and sales and service workshop at Panvel, Navi Mumbai which is on completion stage and will start soon. This will create positive impact on profit margin.
    5. Due to Indian economy is grooming, Auto industry will boost up and Spectra will get benefit of it for a long time.
    6. Last 5 Year CAGR (Compounding annual growth rate) Sales Growth rate is 22%.

     

    Recommendation:

    • Stock CMP is 19 Rs. and stock is trading at P/E 11 & TTM EPS 1.17, based on all above investment points, I am suspecting stock may touch rs.40 within a 1 years’ time horizon.

     

    Please note:

    • Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report. 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” Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.

     

     

     

     

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