About The Company
Shilp Gravures Ltd established in 1993 is a leader in elector-mechanical engraving, with a market share of exceeding 40% for flexible packaging industry in India.
The company is headed by the technocrat Patel's, Headquartered in Ahmedabad the company also has offices in Mumbai,Delhi & Chennai.
The company is engaged in the manufacturing of gravure cylinders which are used for roto-gravure printing, Roto-gravure printing is vastly used by flexible packaging sector.
It's also used in various applications beside flex packaging including pvc flooring, speciality coatings and etc.
The company also has a flexo plate processing unit equipped with DuPont Cyrel 2001P one of worlds finest digital plate processor producing plates of up to 42x60 inch / 106x152cm - The first to produce this size which is the largest available in South Asia.
The company uses technology provided by ESKO and AGFADOTRIX for pre-press that helps designing and creating rapid repeats of matching designs.
The company has strong 300+ clientele which includes giant companies/brands like "HUL, Britannia, Amul, Nestle, Cadbury, Tata Tea, Pepsi, Haldiram, Lehar Foods, Reliance, P&G, Colgate, ITC, Mcdowell's etc".
FINANCIAL ANALYSIS
This company is the market leader and only directly listed player in this high-entry barrier industry.
Trading around Rs 111 with a market cap of under 70 crores.
Current P/E is around 22 considering the half yearly nos and promoter holding is strong at 60.39%.
EQUITY CAPITAL 6.15 Cr
RESERVES 40.69 Cr
CASH 10 Cr (IN BOOKS)
DEBT 19 Cr
SALES 61 Cr
PROFIT MARGIN 15%
EPS Rs.5.05 PER SHARE
The company as seen above is consistently paying dividend track record.
The packaged food industry is the 5th Largest sector in India. The Indian packaged food industry is worth $ 39.7 billion and is expected to more than double by 2025. India presently is ranked 5th in the world and 2nd in Asia and with per capita consumption of 24 kg per year the market is yet to boom and is only at the early stage. India is also the 4th largest market for beverages in Asia with a consumption of 22 bn litre of drinks (soft/hard).
With the new Food Safety & Standard Regulations focusing on the quality of packaging, It is set to boost the sales of reliable flexible packaging.
With the New Govt. at centre, Weakening inflation and Make In India plans there are hopes that soon there will be a rise in the disposable income among young Indians which will boost the sales of packaged foods.
While packaging stocks are over the moon already India's largest and only listed player in it's packaging related industry "SHILP GRAVURES LTD"
Not to forget that SHILP's clientele includes one of India's largest FMCG player.
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Note: The volumes in SHILP are very thin and buy on DIPS. OUR TARGET Rs 150 SHORT TERM ....... Rs.250 MEDIUM 2 LONG TERM
