Excellent mid-cap stock - Sintex Industries

SINTEX INDUSTRIES LTD is medium cap stock with very good potential for growth and is useful for medium term investment.The company belongs to bharat Vijay Goup and is based in North Gujarat and are in busines of manufacturing textile goods, plastic containers , tanks and other moulded products. The current market price of the scrip is Rs.183.90. The company has located its plants at Bangalore, Howrah in west bengal, tamilnadu ,daman, himachal pradesh and at Kalol in gujarat to supply the products to the nearest markets as cost of transportation is very high for their products.The financials for he company for last 4 years are as below:

figures in rs crores                         FY -11               FY-10          FY-09           FY-08

                                                     (unaudited)

Income                                              2618.85            2015.16         1891.13       1655.70

Net Profit                                           357.56              273.70        266.71         216.33

Share Capital                                       27.10              27.10          27.10         27.10

 Resrerves & Surplus                         2212.58        1855.02        1600.63     1436.35

Total Debt                                      -not available-  4056.59      3566.09      3048.58

Market capitalisation of the company is Rs.5020.30 crores and PE ratio is 14.04. The CAGR of income and profit is also attractive. The company is acquiring companies which will contribute to their growth due to which the debt is also high. It is diversifying into various areas including manufacture of turbines and also acquired an automotive component unit. Hence they have ensured that if one segment fails to deliver the desired performance due to unforseen circumstances, the growth of the company should not be affected.

Thus the company will do well in near future and the stock is attractive for mid term pick and most of the brokerage houses recommend the stock to purchase afer every decline for decent gains.