The
Company : Kabra Extrustiontechnik (KET) is the flagship company of Kolsite
group and one of the largest players in the plastic extrusion machinery known
for its innovative offerings. KET specializes in providing plastic extrusion
machinery for manufacturing pipes and films. It has two manufacturing locations
in Daman.
The company since 1962, has done more
than 14,000 installations worldwide and presence in more than 85 countries in
Americas, Middle East, Asia and Africa, KET enjoys leadership position in the
extrusion market with Coveted 2 star Export House Status. Company has set benchmarks in plastics extrusion industry
by modern R & D techniques and various processes to cater the market
requirements for low power consumption, high output, maintenance free and user
friendly plastics extrusion plants.KET received Two Consecutive National Awards for
Technology Innovation in year 2015 & 2016 respectively. KET as a
company through constant R&D and Innovation has introduced several products
and solutions for the “First” time in the plastic extrusion industry since 1970.
The number of such “First” stands at 57 till 2010 and many more
thereafter.
Collaborations
: KET is having Global Collaborations with the leading companies in
plastic industry, as : Battenfeld-Cincinnati
(Germany-Austria-USA), Penta S.r.l. (Italy), Greiner (Austria), Unicor (Germany),
Extron Mecanor (Finland)
Market
Solutions offered by KET serving the ever growing :
Agriculture
(Plasticulture) : Plasticulture
represents use of applications of plastics in Agriculture, Horticulture, Water
management & related areas. A variety of plastics materials and end
products are deployed in Plasticulture applications - for water conservation,
irrigation efficiency, crop and environment protection, as well as end product
storage and transportation.
Infrastructure
: Infrastructure is
one of the key focus areas of growth. Plastics pipes & profiles play a
major role in the fields of Housing, Industrial & Public Infrastructure,
Sanitation, Water Reticulation, Irrigation, Desalination & Effluent
Treatment, Micro-ducts (Fibre optics) & conduits.
Packaging
: Flexible packaging
offers solutions for diverse applications in various user sectors including
staples and food products, beverages, pharmaceuticals, personal care &
household products, cigarettes & tobacco products and a wide range of
industrial applications.
Telecom
: For
telecommunications, cables can be installed in water, in air or underground.
The ducts in which the fibre optic cables are installed are usually made of
polyethylene. KET manufactures high speed telecom micro-duct lines and high
performance bundled sheathing lines to produce micro-duct for 3G & 4G data
communication.
Valuation
: KET, an R&D and Innovation driven, closely held dividend
paying (continuous since last 10 years) company where Indian promoters hold 56%
stake (Zero Pledge) & Battenfeld Extrusion (Germany & USA)holds 14%
stake, with global presence and well accepted products across continents and
serving growth sector such as Agriculture, Infra & Construction, Packaging
& Telecom is available at a market cap of just 466 Cr, with sales of 270 Cr
for FY17 and Net Profit of 27.6 Cr, giving EPS of Rs 8.68 per share is
available at a PE of 16.8 which is bargain than Industry PE of 29.5 and Book value
of 58. For FY 18 & 19, KET is likely to deliver topline growth of 10% and
bottom line growth of 15%, giving an EPS for FY 18 & 19 at Rs 14.5 and 12.6,
at current market price the share is available at an attractive forward PE of
just 12.6 times, thus giving investment opportunity for long term growth.