SOME MORE DEATILS from another website:
Ganesh Polytex Ltd (
http://www.ganeshpolytex.in -
www.ganeshpolytex.in ) is based out of Kanpur and are manufacturers of Recycled/Specialty polyester staple fibre (Fiberfil) and polyester yarn.
This was recommended by Ashish Chugh in Jan 2010 and he himself had got in at a price of Rs. 37.50 around the same time -
http://www.moneycontrol.com/news/stocksviews/ganesh-poly-looks-undervaluedashish-chugh_433622.html -
http://www.moneycontrol.com/news/stocksviews/ganesh-poly-looks-undervaluedashish-chugh_433622.html .
In March 2010 they increased the capacity from to 39,600 TPA to 57,600 TPA for fiberfill and have become largest player in this space. Next is Reliance which has a capacity of 42,000 TPA at plant located in Hazira.
The polyster yarn has capcacity of 2400 TPA which is not planned for any increase in capacity in future.
The future grwoth drivers are increase in capacity of fiberfill to 72,000 TPA by FY12. They are also planning to start a regenerated POY(partially oriented yarn) plant of 18000 TPA by FY12.
They are raising Rs. 12 cr. for expansion -
http://www.moneycontrol.com/news/bu...r-for-co-expansion-ganesh-polytex_449051.html -
http://www.moneycontrol.com/news/bu...r-for-co-expansion-ganesh-polytex_449051.html .
What makes is this interesting is the way the raw materials for fiberfills and regenerated POY are procured - this apparently comes from waste plastic bottles(on googling found another private co. in Bangalore which uses PET bottles to be used in road construction which is also quiet intersting). The raw material is available plenty and cheaply. Arora Fibres is another listed entity in the space but the capacity is much lower.
Fiberfill has various uses in textile industry and also to fill stuffed toys, pillows, quilts etc. and yarn is used in garments, upholstery etc.
The risk is there due to exports as mentioned in their FY09 AR and dollar unstabilty - the exports contributed around 26% in FY09.
Here are the financials:
CMP 50.8
MCap 66
P/E 7.30
P/BV 1.81
EV/ EVBIDTA 3.88
ROCE
FY09 14.2
FY08 15.1
FY07 14.2
FY06 15.7
FY05 16.4
RONW
FY09 17.6
FY08 19.4
FY07 10.9
FY06 11.1
FY05 1.0
Net Sales
FY10 198.88
FY09 135.37
FY08 105.43
FY07 62.68
FY06 52.00
FY05 50.66
FY04 77.11
MCap/Sales
0.33
Net profit
FY10 9.00
FY09 4.34
FY08 3.75
FY07 1.89
FY06 1.46
FY05 0.08
FY04 1.24
Margins
FY05 0.15%
FY06 2.81%
FY07 2.99%
FY08 3.54%
FY09 3.20%