Uni Abex Alloy Products Ltd.

Uni Abex Alloy Products Ltd. produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys. Manufacturing quality alloy products is its prime focus. As a leader in alloy steel castings, Uni Abex has made a significant contribution to various industries in the last three decades.

PIONEERING ACHIEVEMENTS

1976 : Reformer tubes for a fertilizer plant in India. 1983 : Bimetallic Run Out Transport Roll for an integrated steel plant in India. 1989 : Air Injection Tubes as per Lurgi design for a large sponge iron plant in India. 1989 : 50Cr-50Ni-Nb alloy components for Indian Navy for service against Fuel-Ash corrosion. 1991 : Critical components by Vertical Centrifugal Casting process for a Decanter manufacturer in Europe. 1992 : Glendon coils for a pig iron plant using Mini Blast Furnace in India. 2001 : 35Cr-50Ni-Nb alloy components for a Hot Briquette Iron Plant in India for resistance against metal dusting. 2003 : Duplex Stainless Steel alloy components by Vertical Centrifugal Casting process for a decanter manufacturer in Europe. 2006 : Developed TX-63 for Air Injector tube for high temperature application upto 1010°C.

Product range
	Refinery, Petrochemical & Fertilizer industry		Sponge Iron industry		Decanter Manufacturers
	Reformer tubes/ Catalyst tubes Harp Assemblies Hot Collectors/ Headers		Air Injection Tubes Feed Tubes Heat Protection Tubes		Bowl Cylinders Bowl Cones Conveyor Cylinders Hubs
	Iron & Steel industry		Galvanizing Plants		Metal Gasket Manufacturers
	Glendon Coils ROT Rolls Normalizing Furnace Rolls		Sink Rolls Stabilizer Rolls Entry Seal Roll		Ring Segments
	Furnace Manufacturers		Valve Manufacturers
	Radiant Tubes / Hearth Rollers Water Cooled Rolls		Cages / Seat Rings / Balls

RESULTS :- RS IN CR

NET	March 2009	December 2008	September 2008

Sales	19.13	13.87	15.38
Profit	4.53	2.23	2.48

Financial Snapshot (Rs.in millions)
Mkt. Cap	275.91
P/E *	3.92
Div	0.00
EPS (TTM) *	35.63
Book Value	105.76
Debt Equity Ratio	0.90
Return On Networth	26.55
Current Ratio	2.35
Quick Ratio	1.26

* Calculated on adjusted profit after extra-ordinary items

JOINT VENTURE WITH MANOR INDUSTRIES, FRANCE

Our Company along with Neterwala Group of Companies has formed a Joint
Venture Company (JVC) with Manoir Industries SAS, France in respect of
marketing and manufacture of reformer tubes and allied products
business for the petrochemical industries. The new Company to be named
"Manoir Petro India Ltd." will be a 60:40 JVC between Manoir Industries
and Uni Abex Alloy Products Ltd. / Neterwala Group of Companies. Our
Company will hold 20% shares in the New JV Company and the remaining
20% will be held by Neterwala Group of Companies.

Manoir Industries, France is a manufacturing company with a broad
capability in specific sectors of Chemical, Petrochemical and Refinery
markets and operates 6 foundries and 5 forging plants throughout the
world. They are the second largest producers of radiant tubes, midrex
tubes, reformer tubes, steam cracking coils and reformers for large gas
producers in the world and currently do business worth about Rs. 30
Crores in India with year on year growth. With 10 manufacturing
facilities (8 in France, 1 in Belgium 1 in UK) and joint ventures in
China and now India, they employ over 3,000 personnel and produce more
than 6000 metric tonnes per annum of centrifugally cast tubes and
static cast components in heat- resistant alloys and is worlds largest
supplier of furnace components to petrochemical, refineries,
fertilizer, direct iron reduction and galvanizing industries. The
Company should benefit considerably through this association in the
coming years.

Main highlights of the JV are:

1.  Uni Abex has entered Into a commercial rights agreement where by
Unl Abex will receive a lumpsum amount from Manoir of 425,000 Euros.

2.  In Phase-I extending over a period of three years, Unl Abex will
get guaranteed volume of orders for reformer tubes and allied products
business for the petrochemical industries failing which proportionate
margins have also been guaranteed. During this initial stage, JVC will
market Reformer Tubes and allied products and our company will receive
orders placed by JVC and Manoir (France).

3.  In Phase-ll which should commence within a period of three years,
JVC will set its own fabrication shop with advanced technology and know
how of Manoir and purchase cast tubes from Uni Abex.

4.  In Phase-Ill after successful implementation of Phase-ll resulting
in reasonable profitability and positive cash flow, JVC will set up a
full fledged Casting facility. At this stage Uni Abex would no longer
produce components / castings in competition with the JVC.

Given the fact that in the past two years, Uni Abex cumulative business
in the Petrochemical segment field was a paltry sum of Rs. 5.68 crores,
it was felt that Uni Abex would have much to gain in forming the JV
with Manor, the world leader in cast parts for the Petrochemical
Industry

note : it has small equity so don't buy for speculation buy for long term investment.

STOCK MARKET

POSITIVE FACRTORS IN THE MARKET
1) biggest factor is liquidity. There seems to be quite a bit of
liquidity in the market which is keeping it from falling and pushing
it higher.
2) Much better than expected Q1 results. The early results show an
encouraging trend. India Inc. has done a much better job in managing
their finances, especially costs. Let’s see if this trend continues for
the remaining companies.
3) A re-rating on the valuations looks likely. It seems the market is
betting on this.
4) Expectations of a big push on reforms and disinvestment. Let’s hope
the government delivers on this.
5) Moderate crude prices.
6) Benign interest rates for the time being.
7) India being a primarily a domestic consumption story, there is a
feeling that it should be de-coupled from developed markets.

NEGITIVE FACTORS IN THE MARKET
1) Valuation is quiet rich. Sensex is at more than 18 times trailing
12m earnings.
2) The bounce of almost 85% from lows has been quiet rapid.
Individually many stocks have tripled or more. Any big correction can
be violent.
3) Interest rates though currently are probably going to inch upwards
in the second half.
4) Possible downgrade of the country due to HIGH FISCAL DEFICIT in the
near future.
5) US and Europe downturn to continue for a prolonged time (maybe well
into 2010). US unemployment rate expected to cross 11% (which is
probably as high as the Great Economic Depression of 1930s) in 2010.
6) The government is burdened by huge expectation on reforms and
disinvestment. Any slippage on this front will be a big negative.
7) Government and PSU borrowing to suck out a lot of liquidity from
the markets. Will India Inc. be left with left with enough liquidity
for their capex programs. A rough calculation leads to a shortfall of
Rs. 70000-80000 crore for India Inc. ECB norms need to be relaxed for
bridging this shortfall.
8) Effect of India signing global emission norms on Indian industry to
be evaluated.
9) Deficient MONSOON can really spook the market. This needs to be
closely watched.
10) Is Adani Power IPO a pointer to market peaking out for the near
term a la Reliance Power IPO? On the face of it the IPO looks
expensive, though not as stretched as Reliance Power IPO.

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