BUY. CMP Target Price JUNE 20 th Highlights. Result Update (PARENT BASIS): Q4 FY15

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1 BUY CMP Target Price WIM PLAST LTD Result Update (PARENT BASIS): Q4 FY15 JUNE 20 th ISIN: INE015B01018 Index Details Stock Data Sector Plastic Products BSE Code Face Value wk. High / Low (Rs.) / Volume (2wk. Avg.) 2202 Market Cap (Rs. in mn.) Annual Estimated Results (A*: Actual / E*: Estimated) YEARS FY15A FY16E FY17E Net Sales EBITDA Net Profit EPS P/E Shareholding Pattern (%) 1 Year Comparative Graph WIM PLAST LTD S&P BSE SENSEX Highlights Wim Plast Ltd one of the major players in plastic industry and a group company of Cello reported double digit growth in Sales for the 4 th quarter March results FY15. The Company s net sales grew by 29.15% y-o-y from Rs mn to Rs mn for the quarter ended 31 st March, For Q4 FY15, Net Profit grew by 47.14% to Rs mn as compared to Rs mn for Q4 FY14. EBDITA for the 4 th quarter stood at Rs mn, an increased by 42.78% y-o-y compared to Rs mn in the corresponding quarter of the previous year. Profit before Tax (PBT) also rose by 49.40% of Rs mn in Q4 FY15 compared to Rs mn in same period previous year. Other income increased from Rs mn to Rs mn in the March quarter of FY Earnings per Share for 4 th quarter FY15 stood at Rs compared to Earning per share of Rs in the corresponding quarter of the previous year. Net Sales grew by 24% to Rs million for the end of FY15 from Rs million for the end of FY14. The Company has recommended Final 100% i.e., Rs /- per share on face value of Rs /- each for the financial year ended on March 31, Net Sales and PAT of the company are expected to grow at a CAGR of 16% & 15% over 2014 to 2017E respectively. PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) WIM PLAST LTD SUPREME INDUSTRIES LTD ASTRAL POLY TECHNIK LTD FINOLEX INDUSTRIES LTD

2 Analysis & Recommendation - BUY Wim Plast Ltd reported 29.15% rise in Net sales YOY at Rs mn against Rs mn in corresponding quarter of the previous year. PAT or Net Profit for Q4 FY15 was up by 47.14% to Rs mn as compared to Rs mn for Q4 FY14. EBDITA for the 4 th quarter stood at Rs mn, an increased by 42.78% y-o-y compared to Rs mn in the corresponding quarter of the previous year. Presently, Wim Plast Ltd has its Manufacturing Units and Sales Depot across the country with PAN India distribution network. The company produces variety of range of Plastic Furniture Products with lead of the Premium Range of Furniture and other Plastic Articles. The products of Plastic Extruded Sheets have multiple utility in Packaging, Construction decorative panels and other Industrial usages. With these rages of products and the distribution net the Company anticipates better growth in the coming years. Thus rise in finance costs is a possibility in the near future. Wim Plast with its sound fundamentals and strong portfolio of products will consolidate its position in the coming quarters also. We expect the company to post a CAGR of 16% and 15% in its top-line and bottom-line over 2014 to 2017E respectively. Thus we recommend BUY for the scrip with the target price of Rs for medium and long term. Company Profile Wim Plast Limited is one of the group companies of cello group. Wim Plasts Limited was incorporated on 7th of October, 1988 as a Private Limited Company. Registrar at Bombay, Maharashtra and latter it was converted into a Public Limited Company on 14th July CELLO begins its journey by manufacturing plastic household goods. Presently the company has manufacturing units at Daman, Baddi and Chennai also have Depots in Gujarat, Rajasthan, Andhra Pradesh, Haryana and Punjab and have strong consumer base through out the country. And recently the new additional Manufacturing Unit in Kolkata was started in February In the year 1994 Cello Group ventures stepped into manufacturing moulded furniture. Elegant, versatile and durable, cello furniture brings convenience and style to consumers at surprising economical price, made from special grade plastic and state-of-the-art moulds from Italy. Cello Furniture becomes a household name in short span of time for its range of products and quality. Cello Group entered the plastic moulded ball pen Writing Instruments market in the year 1995, cello exploded on the scene with cello Clear Pens with Swiss tips and German ink and changed forever the way pen ran on paper. The revolutionary new smear free, smooth flowing pen not just took the market by storm but marked a new era in writing instruments in India. Not too long after, the company unveiled two more models Prism and Crystal and with that started as a mere 3-machine Company, took wings. The Company s production techniques include Injection Moulding and Extrusion Technology. The Technological process is subject to up gradation from time to time and efforts are continuously made to absorb the latest Technology. This results in the upgradation of production process with improved results of operations. The Company does not have any Subsidiary Company.

3 QUARTERLY HIGHLIGHTS (PARENT BASIS) Q4 FY15: Net Sales rose in double digits by 29.15% from Rs mn to Rs mn in Q4 FY15. Net Profit grew by 47.14% from Rs mn to Rs mn in March quarter of FY15. EBDITA increased by 42.78% from Rs mn to Rs mn in Q4 FY15. Profit before Tax rose by 49.40% to Rs mn in Q4 FY15 from Rs mn in Q4 FY14. Rs. In Mn Mar-15 Mar-14 % Change Net Sales Net Profit EPS EBITDA Other Income Profit Before Tax Break up of Expenditure In Millions Q4 FY15 Q4 FY14 Chng % Cost of Materials Consumed Purchases of Traded Goods % % Employee Benefit Exp % Dep & Amortz Exp % Other Expenses %

4 FINANCIAL STATEMENTS & ESTIMATIONS (PARENT BASIS) (A*- Actual, E* -Estimations& Rs. In Millions) Balance Sheet as at March 31 st, E WIM PLAST LTD FY14A FY15A FY16E FY17E EQUITY AND LIABILITIES: Shareholders Funds: Share Capital Reserves and Surplus Net worth (a) Non-Current Liabilities: Deferred Tax Liabilities [Net] Other Long Term Liabilities Long Term Provisions Total Long term Liabilities (b) Current Liabilities: Short-term borrowings Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities (c) Total Liabilities (a+b+c) ASSETS: Non-Current Assets: Fixed Assets Long Term Loans and Advances Total Non Current Assets (d) Current Assets: Inventories Trade Receivables Cash and Bank Balances Short Term Loans and Advances Total Current Assets (e) Total Assets (d+e)

5 Annual Profit & Loss Statement for the period of 2014 to 2017E Value(Rs.in.mn) FY14A FY15A FY16E FY17E Description 12m 12m 12m 12m Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross profit Depreciation Profit Before Tax Tax Profit After Tax Equity capital Reserves Face value EPS Quarterly Profit & Loss Statement for the period of 30 SEPT, 2014 to 30 JUNE, 2015E Value(Rs.in.mn) 30-Sep Dec Mar Jun-15E Description 3m 3m 3m 3m Net sales Other income Total Income Expenditure Operating profit Interest Gross profit Depreciation Profit Before Tax Tax Profit After Tax Equity capital Face value EPS

6 Ratio Analysis Particulars FY14A FY15A FY16E FY17E EPS (Rs.) EBITDA Margin (%) 18.20% 17.14% 17.33% 17.47% PBT Margin (%) 15.08% 14.63% 14.97% 15.17% PAT Margin (%) 10.97% 10.48% 10.74% 10.86% P/E Ratio (x) ROE (%) 21.55% 21.60% 21.35% 20.84% ROCE (%) 41.73% 40.41% 39.08% 37.84% EV/EBITDA (x) Book Value (Rs.) P/BV Charts

7 OUTLOOK AND CONCLUSION At the current market price of Rs , the stock P/E ratio is at x FY16E and x FY17E respectively. Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs and Rs respectively. Net Income and PAT of the company are expected to grow at a CAGR of 16% and 15% over 2014 to 2017E respectively. On the basis of EV/EBITDA (x), the stock trades at x for FY16E and x for FY17E. Price to Book Value of the stock is expected to be at 5.10 x and 4.43 x for FY16E and FY17E respectively. We recommend BUY in this particular scrip with a target price of Rs for Medium to Long term investment. INDUSTRY OVERVIEW The Indian plastics industry made a promising beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been made and the industry has grown and diversified rapidly. Currently, the Indian plastics industry is spread across the country, employing about 4 million people and over 2,000 exporters. It operates more than 30,000 processing units, of which 85 per cent to 90 per cent are small and medium enterprises (SMEs). Steady Growth in Exports India is one of the most promising exporters of plastics among developing countries. The Indian plastics industry produces and exports a wide range of raw materials, plastic moulded extruded goods, polyester films, laminates, moulded/ soft luggage items, writing instruments, plastic woven sacks and bags, PVC leather cloth and sheeting, packaging, consumer goods, sanitary fittings, electrical accessories, laboratory/ medical surgical ware and travel ware, among other products. Key Markets and Export Destinations In , exports of Indian plastics stood at around US$ 7, million, compared to US$ 7, million in Indian plastics exports have grown at a rate of per cent in , compared to the previous financial year. China is the major importer of plastic products from India which was estimated at around US$ 869 million in , followed by USA at US$ million and UAE at US$ million.

8 Products from the Indian plastics industry are exported to more than 150 countries; major trading partners being China, the US, the UAE, Turkey, Italy, the UK, Indonesia, Germany, Vietnam, Bangladesh, Nigeria, Pakistan, South Africa, Brazil, Singapore, Saudi Arabia, Nepal, Egypt, Sri Lanka and the Netherlands. Plastics Export Promotion Council The Plastics Export Promotion Council (PLEXCONCIL) is the apex government body for the promotion of exports by the Indian plastics industry. The members of the council comprise large/medium/small-scale manufacturers and exporters. It facilitates exporters through various export promotion activities such as participating in international trade fairs, exploring newer markets, organising buyer seller meets both in India and overseas, and other need based activities. Disclaimer: This document is prepared by our research analysts and it does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable but we do not represent that it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Firstcall Research and/ or its affiliates and/or employees will not be liable for the recipients investment decision based on this document.

9 Firstcall India Equity Research: C.V.S.L.Kameswari Pharma & Diversified U. Janaki Rao Capital Goods B. Anil Kumar Auto, IT & FMCG M. Vinayak Rao Diversified G. Amarender Diversified Firstcall Research Provides Industry Research on all the Sectors and Equity Research on Major Companies forming part of Listed and Unlisted Segments For Further Details Contact: Tel.: / / Telefax: / info@firstobjectindia.com