Sunday, March 7, 2021

ITL Industries Ltd : Hurry to catch-up the fair value

ITL Industries Ltd closes   at ₹122.75 with  a  Gain   of  +2.20%   on    05-March-2021  with formation of  a  Green Candle    on Daily  Price Chart.

About the Company : ITL Industries Limited is an India-based company, which is engaged in manufacturing of band saw machines, computerized numerical control (CNC) tube mills, and machine tools and sale/purchase of hydraulic items, among others. The principal business activities of the Company include machine manufacturing, and trading of cutting tools and hydraulics, among others. The Company's segments include machine manufacturing and trading activities. The Company's product portfolio includes High Speed Metal Cutting Band Saw Machine; Automatic Metal Cutting Band Saw Machine; High Speed Vertical Band Saw Machine; High Speed Circular Sawing Machines; Tube Mill; ON-Line Fly Cutt Off; Band Saw Blades; Mitre Cutting Band Saw Machine; Special Purpose Horizontal Bandsaw Metal Sawing Machines; Condensor Vessel/Heat Exchanger End Cutting Machine, and Aluminum Billet Cutting Bandsaw Machine for Extrusion Industry.

Sector Update : The tiles sector will see momentum in the near term with revival of the Industrial & Auto sector.

Strength : Gradual recovery in the domestic in the construction, auto & industrial sector will act as catalyst for this company in Mid-Long term.

Financials : The Company has posted Net Sales of ₹ 79.00Cr and Net Profit of ₹4.00Cr with Net Profit Margin of5% in FY2020 and Net Sales of ₹76.00Cr with Net Profit of ₹3.00Cr with 4% of Net Profit margin.

Valuations  : The Company is now Trading at X 0.90  of its  valuations ( last 4Quaters earnings considered here) with ~10% Discount  and at X0.84 of its FY 2021, which is now almost  ~16%  Discount  to its value and  X 0.80 of its FY 2022 earning with a Discount  of ~20% and X0.75 of its FY2023 earning with ~25%  Discount to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.7, which  makes it attractive. The Best Price at X1 EPV to Past Reference(5Yrs) is ₹123 & Equity Value Per Share ( Enterprise Value Method ) is  ₹117.80 .

Disclaimer : We are / may going to take exposure shortly.

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