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Stocks

Sintex: Q3 2011 EPS Up 55%

Sintex has shown great Q3 results. Revenues are up 41% and EPS is up 55%. At 170, the stock quotes at a P/E of 11 on the trailing 12 month EPS of 15.88.

Sintex Rs Cr. Except EPS data Copyright © Market Vision      
  Dec-10 Sep-10 Jun-10 Mar-10 Dec-09 Sep-09 Jun-09 Mar-09
Revenue 1,183.84 920.61 907.96 1,083.20 835.51 711.23 651.69 830.62
Other Income 2.17 2.45 2.68 0.00 12.31 4.17 10.71 22.38
Total Income 1,186.01 923.06 910.64 1,083.20 847.82 715.40 662.40 853.00
Expenditure 1,026.73 787.20 809.60 935.46 756.46 622.05 611.63 705.77
Net Profit 112.81 100.16 79.06 138.73 72.45 58.26 60.59 115.10
Profit Growth 55.71% 71.92% 30.48% 20.53% 1.02% -30.50% 7.30% 21.71%
Revenue Growth 41.69% 29.44% 39.32% 30.41% 4.62% -1.20% -8.83% -10.54%
EPS 4.16 3.70 2.91 5.12 2.68 2.36 2.22 4.21
EPS Gr.YoY% 55.51% 56.57% 30.65% 21.62% 2.29% -23.62% 6.64% 4.99%
TTM EPS 15.88 14.40 13.06 12.38 11.47 11.41 12.14 12.00
TTM EPS Growth 38.47% 26.18% 7.59% 3.15% -2.81% -3.11% 14.30% 20.06%

Trailing 12 month EPS is back in growth mode – over 38% this quarter, and looking strong.

Mint says that the Sintex stock, which has fallen about 22% in a month, has been impacted by a slowdown in govt. orders. They have three lines of business – textiles, building material like in pre-fab housing/monolithic structures, and custom moulding with all three showing a reasonable rise. And we know it largely for the big black water tanks you see on rooftops!

I like this stock for the understated scale – they’re into telecom shelters, moulds for cars, pre-fab housing, textiles, etc., and have touched the 1,000 cr. per quarter revenue. Additionally, they acquire on a regular basis, and don’t have crazy amounts of debt (just 30 cr. a quarter as interest). It’s a momentum play though, and it moves in a volatile way.

There is a lot of activity in terms of promoter pledging and unpledging of shares, though I wouldn’t call it a major concern. Shareholding Pattern:

  • Promoters: 35% – they’ve upped their stake 1% or so in Dec.
  • FIIs: 35%
  • Mutual Funds and Insurance: 11%
  • Public: 19%

Technically the stock is weak, having lost so much recently.

Disclosure: I hold this stock, stop loss of about 150.

  • himanshu says:

    >all said and done.

    this week (from monday onwards) if sintex closes above 179.3 (that is current closed weeks high) then it will be up otherwise going down . Its 13 week e m a (expontial) is still above 26 w e m a signifying primary uptrend but is very near to a bearish cross.

    Hence as an investor or trader at such level i would have been sitting tight waiting for 179.3 to be crossed on closing otherwise i would have never traded against the trend!

    once 13-26 w e ma reverse cross happens , the condition of stock becomes helpless as the operators reverse stance and start going opposite to u. a good example is lichsgfin (very reasonable pe pb and roe etc etc but going down) , hdil (since march 2010) despited mumbai reality making new highs, aban ( since march 2010) despite oil going beyond 90 and so on and so forth.

    making money is simple and investin is pure macroeconmics , if interested , send a blank mail or write to me at hemangoyal@gmail.com . Iwill add u to my friends list with occasional mails i am impressed by your free and frank opinions some time posted here.

    meanwhile if nifty doesnot close beyond 5907 next week , stay away . As having no position is a position itself.

    for reliance – any close above 1070 will be beneficial, till then stay away or short near 1070 intraday (higher shorts will have minimum stoplosses) .

    regards.,