It is market leader in industrial packaging with more than 75% share in the market.The company has made tie up with Mauser-Werk, GmbH of Germany, which is one of the largest producer intermediate bulk containers, plastic, steel and fibre drums in Europe and US.The company could produce innovative polymer based products like anti spray devices, plastic fuel tanks, OT safe Masks, High Pressure pipes, Pre- fabricated shelters and sound barriers etc.
The company has also forayed into telecom battery business with acquisition of Hyderabad based NED Energy and successfully launched UPS and automotive batteries. It has made several acquisitions in Europe, Taiwan and Egypt. The company has successfully produced prototype composite cylinders approved as per European standards, for which commercial production has started in June 2011.
The market capitalisation of the company is Rs. 1472.18 crores having PE ratio of 16.32 against industry average of 6.08. The higher PE of the company does not deter further growth as the company is innovating new products and applications regularly.It is also acquiring other companies which can improve their market share and in certain cases it is entering into JV with some companies to manufacture and supply the goods globally.It is one of the companies which are medium and long term bets for investment.
The financials of the company is very strong and can be seen from revenue growth from Rs.535.23crores in FY2008 to Rs.821.89 crores in FY2011. Accordingly the net profit of the company has also increased from Rs.63.52 crores to Rs. 90.14 crores during the same period. EPS of the company has also increased from Rs.2.78 in FY2009 to Rs.4.31 in FY2011 .
The current market price of the stock is Rs.69.75 as on 01.08.2011 on NSE and the top mutual funds in the country have also expressed their interest in including the shares of the company in their portfolio regularly. They have acquired 22,834,937 shares of the company under different schemes during the quarter ending 30.06.2011.
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