Fundamentally analyzed Small and Mid Sized listed Companies on BSE and NSE. Please study or get an advise from your Certified Financial Planner or Advisor before investing into Equities.
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RAJOO ENGINEERS LTD
(BSE 522257 FV RS.1) RS. 17 – A Global player in Plastic Extrusion Machinery
Engineers Ltd (REL), founded in 1986 as a private limited entity engaged in
a business of manufacturing Plastic Extrusion Machines. In the last 29 years,
the company has blossomed to become one
of the most respected name in the Extrusion Machine Manufacuring industry. The
company boasts of having commissioned over 2000 installations till date in
india and across over 56 plus countries including Germany, Spain & UK which
speaks for the acceptance of company’s products by the most stringent and
developed markets of the world. Over 50% of company’s products are exported
and Over 60% of the business of the company comes from repeat orders, which
indicates the satisfaction levels of the existing customers.
Products : The company today is a Market Leader
in Blow Film Lines, Sheet Lines and Thermoformers (in the Indian sub-continent
as well as amongst its peers in Asian sub continent.) Other products includes PP Non woven fabric making machine, Foam
Extrusion Systems (Chemical & Physical), Pipe Plants & Drip Irrigation.
Application : The machinery manufactured by the
company, has applications across various Industries, such as : Flexible
Packaging, Agriculture, Infrastructure, Automobiles, Food & Beverages,
Pharmaceutical, White Goods, Stationery & Printing.
Collaboration : For
expanding its product line, company has technical collaboration with :
COMMODORE INC, U.S.A. for manufacture of XPS Sheet line and
WONDERPACK, a leader in Thermoforming Industry, was merged with
Rajoo Engineers Ltd
HOSOKAWA ALPINE AG, GERMANY one of the most reputed company
in Blown Film Technology
A JV with BAUSANO & FIGLI S.P.A. of ITALY a global leader
in Pipe manufacturing technology & Drip Irrigation Solutions.
A JV with MEAF Machines B.V, Netherlands for manufacturing
world class Sheet Extrusion Equipments and Thermoforming Machinery to address
growing demand for Semi-flexible packaging system.
The company carries many record for developing / bringing
latest technology first time in the country and in the world, for which the
company & its founders have received many Awards for business leadership,
innovation in technology and contribution to plastic & polymer industry.
Recently company launched a product which consumes 40% less Power.
Business Strategy : To mark its overseas presence and
showcase the products, the company has participated in 10 exhibitions last year,
out of which 6 were overseas, the company has got excellent exposure and good
response, hence next target for the company is to participate in 15 such
exhibitions related to plastic industry both local and overseas.
Outlook : With Increasing demand for plastic
products due to Consumerism, Mall Culture and Improving Hygiene habits, plastic
industry is having good times with increase in profitability due to fall in
with weak Crude Oil Price, which is allowing it to invest more into capital
goods for expansion & addition of new product lines, which in turn benefits
Rajoo Engineers Ltd, as it is one of the leading suppliers of machinery to
plastic industry. Plus company to get huge benefit due to its venture into
Plastic Pipes and Drip Irrigation Solutions the demand for which is huge from
within the country and overseas as water crisis is becoming a Global
Phenomenon, Here in India Drip Irrigation is supported by central government’s
“More Crop, Per Drop” policy.
Valuation : An Award winning company for its
Innovation & Advance Technology, which is truly a global player into niche
segment of Plastic Extrusion Machinery, with technical collaboration with
global leaders, and a Debt Free company is available at a P/E of just 17 times (Industry
P/E 30) TTM Eps of Rs 0.96 per share. Recent released IIP data states huge
increase in manufacturing of plastic extrusion machinery, which suggest better
days for the company, and stock is yet to catch up with the current rally, hence
investors should study this stock for long term investment purpose. Delivery
data on BSE from Jul 2015 till date is above 85% which suggest good
accumulation by Smart investors.