Malabar Building Products-Hameed-29jul2k5
(May not be useful for day-traders.)
Malabar Building Products-A Roof for All
BSE 507874, Buy (Not applicable for day-traders.)
EPS Fiscal 2005: 12, Projected EPS 06: Rs 14
Current PE: 8; On Projected Earnings Fiscal 06: 11.5
Market Capitalisation; Rs 20 crore. Targeted Appreciation : 50 per cent
Short Term Trigger: Merger announcement with Hyderabad Industries
Thrissur based small cap Malabar Building Products Limited (MBPL) is a leading manufacturer of A.C. Roofing Sheets and Accessories. Promoted by Hyderabad Industries Limited (Current Equity ownership 48.1 per cent or 10,06,930 shares), is one of the pioneers in the A.C. Roofing Sheets segment in India. MBPL commenced its operations by establishing a modern Roofing Sheet plant during the year 1986 at Mulagunnathukavu, near Thrissur, Kerala, India.The Company has its Registered Office at Thrissur and the Marketing Office at Cochin. The Marketing Network consists of 10 Sales Depots and over 300 Authorised Dealers in the Southern States of India viz. Kerala, Tamil Nadu, Andhra Pradesh, Pondicherry and Karnataka. Apart from Roofing Sheets, MBPL also markets AEROCON Partition Panels, Building Blocks and C.F. Flat sheets.
Quality Player
'Malabar' roofing sheets are manufactured in an automated plant with the finest raw materials available. All products manufactured by MBPL confirm to BIS specifications. They undergo stringent quality tests at every stage of production. The consistency in quality and availablility has made 'Malabar' roofing sheets one of the most reputed products among builders and architects. These are being widely used in various construction projects like Industrial structures, commercial buildings and for domestic roofing all over South India for the past two decades.
'Malabar' Roofing Sheets can withstand rigours of extreme weather conditions without losing any of their special attributes like dimensional stability, resistance to fire and moisture. They are termite-proof, hence hardly need any maintenance.
A dabble into diversification
Malabar is mainly involved in the manufacturing and marketing of building materials like Aerocon panels, AC roofing sheets, and ARTZ sanitaryware. It has also diverisified in to the manufacturing of solid surfacing materials and cultured marble products, with a Rs 3 crore facility at Alwaye, Kerala that can produce about 200 tonne of materials per annum.
The company has also entered into a marketing alliance with the $1-billion Wilsonart International of the US to offer "Eurostone" decorative surfacing material in the country. In addition to selling the products, Malabar Building Products also provides a wide range of customer support and design services to ensure perfect installation. The company is also opening "Eurostone showrooms" in Bangalore, Hyderabad, Chennai and Kochi for educating the architects and customers.
Eurostone is available in an array of 24 colours, unlike the limited range of marble and granite which can be co-ordinated or contrasted with the colour scheme of the environment. It can be polished to high gloss or matt finish to resemble rawstone. One of the main advantages of this material is that it is completely renewable.
Wilsonart International is the largest manufacturer of solid surfacing, decorative laminates, and laminates flooring in North America and a world leader in decorative surfacing. The company manufacturers and distributes surfacing options in more than 100 countries.
Strong on financials
For the year ended March 2005, Malabar reported Revenues of Rs 31 crore (Rs 27 crore), with after tax profits of Rs 2.51 crore (Rs 2.51 crore)-an effective EPS of Rs 12 on a small equity of Rs 2 crore. With fiscal 2006 revenues projected at Rs 35 crore, and an after tax profit of Rs 3 crore, the stock remains a BUY.
The biggest trigger is the very large possibility of Malabar being merged with Hyderababd Industries during the fiscal 2006, with the swap ratio highly in favour of Malabar shareholders. So effectively Malabar will become a tracking stock for Hyderabad Industries.
Malabar Building Products-A Roof for All
BSE 507874, Buy (Not applicable for day-traders.)
EPS Fiscal 2005: 12, Projected EPS 06: Rs 14
Current PE: 8; On Projected Earnings Fiscal 06: 11.5
Market Capitalisation; Rs 20 crore. Targeted Appreciation : 50 per cent
Short Term Trigger: Merger announcement with Hyderabad Industries
Thrissur based small cap Malabar Building Products Limited (MBPL) is a leading manufacturer of A.C. Roofing Sheets and Accessories. Promoted by Hyderabad Industries Limited (Current Equity ownership 48.1 per cent or 10,06,930 shares), is one of the pioneers in the A.C. Roofing Sheets segment in India. MBPL commenced its operations by establishing a modern Roofing Sheet plant during the year 1986 at Mulagunnathukavu, near Thrissur, Kerala, India.The Company has its Registered Office at Thrissur and the Marketing Office at Cochin. The Marketing Network consists of 10 Sales Depots and over 300 Authorised Dealers in the Southern States of India viz. Kerala, Tamil Nadu, Andhra Pradesh, Pondicherry and Karnataka. Apart from Roofing Sheets, MBPL also markets AEROCON Partition Panels, Building Blocks and C.F. Flat sheets.
Quality Player
'Malabar' roofing sheets are manufactured in an automated plant with the finest raw materials available. All products manufactured by MBPL confirm to BIS specifications. They undergo stringent quality tests at every stage of production. The consistency in quality and availablility has made 'Malabar' roofing sheets one of the most reputed products among builders and architects. These are being widely used in various construction projects like Industrial structures, commercial buildings and for domestic roofing all over South India for the past two decades.
'Malabar' Roofing Sheets can withstand rigours of extreme weather conditions without losing any of their special attributes like dimensional stability, resistance to fire and moisture. They are termite-proof, hence hardly need any maintenance.
A dabble into diversification
Malabar is mainly involved in the manufacturing and marketing of building materials like Aerocon panels, AC roofing sheets, and ARTZ sanitaryware. It has also diverisified in to the manufacturing of solid surfacing materials and cultured marble products, with a Rs 3 crore facility at Alwaye, Kerala that can produce about 200 tonne of materials per annum.
The company has also entered into a marketing alliance with the $1-billion Wilsonart International of the US to offer "Eurostone" decorative surfacing material in the country. In addition to selling the products, Malabar Building Products also provides a wide range of customer support and design services to ensure perfect installation. The company is also opening "Eurostone showrooms" in Bangalore, Hyderabad, Chennai and Kochi for educating the architects and customers.
Eurostone is available in an array of 24 colours, unlike the limited range of marble and granite which can be co-ordinated or contrasted with the colour scheme of the environment. It can be polished to high gloss or matt finish to resemble rawstone. One of the main advantages of this material is that it is completely renewable.
Wilsonart International is the largest manufacturer of solid surfacing, decorative laminates, and laminates flooring in North America and a world leader in decorative surfacing. The company manufacturers and distributes surfacing options in more than 100 countries.
Strong on financials
For the year ended March 2005, Malabar reported Revenues of Rs 31 crore (Rs 27 crore), with after tax profits of Rs 2.51 crore (Rs 2.51 crore)-an effective EPS of Rs 12 on a small equity of Rs 2 crore. With fiscal 2006 revenues projected at Rs 35 crore, and an after tax profit of Rs 3 crore, the stock remains a BUY.
The biggest trigger is the very large possibility of Malabar being merged with Hyderababd Industries during the fiscal 2006, with the swap ratio highly in favour of Malabar shareholders. So effectively Malabar will become a tracking stock for Hyderabad Industries.
posted by gd26ram at
5:31 AM
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