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Wednesday, June 24, 2015

Styrolution ABS (India) Limited CMP(570.00)

Styrolution ABS (India) Limited







Styrolution ABS (India) Limited (SAI) is the leader and number one producer of ABSOLAC (ABS) in India. ABS is a plastic resin produced from Acrylonitrile, Butadiene & Styrene, used for manufacturing of home appliances, automobiles, consumer durables and business machines. The company is also a leading manufacturer of ABSOLAN (SAN) which is a polymerized plastic resin produced from Styrene & Acrylonitrile, and mainly used for products such as lightings, stationeries, novelties, refrigerators and cosmetic packing. With 40 years of pioneering experience SAI has been the most preferred supplier to our esteemed customers. We take immense effort in analyzing and understanding our customer's requirements to offer innovative solutions that enhances quality of their products. Our commitment to offer best-in-class products and customized solutions has put us in number one position. 

 Styrolution, is the global leader in Styrenics. With combined pro forma sales of 5.8 billion EUR in 2013, it is the number one supplier of styrene monomers, polystyrene and copolymers, and the number two supplier of ABS (acrylonitrile butadiene styrene) across the globe. With over 80 years of solid experience Styrolution provides styrenic applications for many everyday products across a range of industries, including automotive, electrical/electronics, building and construction, household appliances, toys/sports/leisure, packaging, healthcare and diagnostics. With best-in-class production technology, advanced R&D skills and strong IP and patents positions, Styrolution is perfectly equipped to ensure the highest level of quality, efficiency and innovation.






Infrastructure

Nandesari Plant:


Nandesari Plant is located in GIDC Industrial Estate Nandesari. Gujarat, India. This plant manufactures ABSOLAC (Acrylonytrile Butadiene Styrene). The plant was started with an installed capacity of 2000 Tones/ annum in 1978. The Plant is now doing exceedingly well. This year the production of ABS has remained at the level of 50000.

Katol Plant:
Started in 1993, this is a fully automated plantwhich produces the ABSOLAN plastic resins.



Moxi Plant:

Situated near Vadodara, the Moxi plant is a tribute to the ever growing demand of high quality thermoplastic resins required for the modern age consumer products. Safety and quality are deeply inculcated in our culture which drives us to keep thinking new ways of enhancing our capabilities to provide even better products to our customers. That is why an ultra-modern state-of-the-art research and development centeris a signature of our commitment to the future expectations of our customer.

products:

Absolac (ABS):
Absolac (ABS) is plastic resin produced from Acrylonitrile, Butadiene & Styrene. It is a widely used intermediary product. Its applications ranges from home appliances to Automobile and consumer durables to business machines. 


Absolan (SAN):
Absolan (SAN) is also a polymerized plastic resin which is produced from Styrene & Acrylonitrile. It has its main applications in the Lightings, Stationeries and novelties, Refrigerators and cosmetic packing 


Outlook and Valuation: "With the Automobile and Household industry expected to report healthy growth, which will drive the demand for Styrolution products, we expect the company to post a revenue CAGR of 12.8% (adjusted for FY2015E) over FY2015E-17E to Rs 1,508cr in FY2017E. The EBITDA is expected to grow at a CAGR of 49.2% over FY2015E-17E to Rs 143cr while margins are expected to rebound to higher single digit levels of 9.5% in FY2017E. The net profit is expected to register a CAGR of 71.1% over the same period to Rs 78cr in FY2017E. We recommend an Accumulate rating on the stock, with a target price of Rs 758, assigning a P/E multiple of 17x to its FY2017E EPS of Rs 44.6", says Angel Broking research report

Read more at: http://www.moneycontrol.com/news/recommendations/accumulate-styrolution-abs-targetrs-758-angel_1314360.html?utm_source=ref_article

Outlook and Valuation: "With the Automobile and Household industry expected to report healthy growth, which will drive the demand for Styrolution products, we expect the company to post a revenue CAGR of 12.8% (adjusted for FY2015E) over FY2015E-17E to Rs 1,508cr in FY2017E. The EBITDA is expected to grow at a CAGR of 49.2% over FY2015E-17E to Rs 143cr while margins are expected to rebound to higher single digit levels of 9.5% in FY2017E. The net profit is expected to register a CAGR of 71.1% over the same period to Rs 78cr in FY2017E. 

We recommend an Accumulate rating on the stock, with a target price of Rs 758, assigning a P/E multiple of 17x to its FY2017E EPS of Rs 44.6", says Angel Broking research report

10 years chart

Styrolution ABS (India) Ltd Technical Analysis Chart | 4-Traders


Outlook and Valuation: "With the Automobile and Household industry expected to report healthy growth, which will drive the demand for Styrolution products, we expect the company to post a revenue CAGR of 12.8% (adjusted for FY2015E) over FY2015E-17E to Rs 1,508cr in FY2017E. The EBITDA is expected to grow at a CAGR of 49.2% over FY2015E-17E to Rs 143cr while margins are expected to rebound to higher single digit levels of 9.5% in FY2017E. The net profit is expected to register a CAGR of 71.1% over the same period to Rs 78cr in FY2017E. We recommend an Accumulate rating on the stock, with a target price of Rs 758, assigning a P/E multiple of 17x to its FY2017E EPS of Rs 44.6", says Angel Broking research report.

Read more at: http://www.moneycontrol.com/news/recommendations/accumulate-styrolution-abs-targetrs-758-angel_1314360.html?utm_source=ref_article

Outlook and Valuation: "With the Automobile and Household industry expected to report healthy growth, which will drive the demand for Styrolution products, we expect the company to post a revenue CAGR of 12.8% (adjusted for FY2015E) over FY2015E-17E to Rs 1,508cr in FY2017E. The EBITDA is expected to grow at a CAGR of 49.2% over FY2015E-17E to Rs 143cr while margins are expected to rebound to higher single digit levels of 9.5% in FY2017E. The net profit is expected to register a CAGR of 71.1% over the same period to Rs 78cr in FY2017E. We recommend an Accumulate rating on the stock, with a target price of Rs 758, assigning a P/E multiple of 17x to its FY2017E EPS of Rs 44.6", says Angel Broking research report.

Read more at: http://www.moneycontrol.com/news/recommendations/accumulate-styrolution-abs-targetrs-758-angel_1314360.html?utm_source=ref_article

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