Hindustan Tin Works-Packaging Good

Fortune
BSE CODE 530315

Packaging Industry is poised for an exciting future in the days ahead. The
Government's incentive to agriculture industry for targeting world markets will see
the growth of this allied industry. Hindustan Tin Works is the leader in the can
industry with consistent performance over the years.

Hindustan Tin Works Limited produces a wide range of Cans and provides quality-
packing solutions to Dairy Products, Edible Oils, Tea, Coffee, Motor Oils,
Medicines, Pesticides, Chemical and Paint Industries. It is one of the largest
manufacturer of lithographed metal containers in India.

The cans produced by Hindustan Tin Works are recyclable and are environmental
friendly. The manufacturing facility at Bhigan Haryana is equipped with
sophisticated machinery from UK, Switzerland, Germany, USA, Taiwan, Italy and
Japan. The production capacity at Hindustan Tin Works ranges from 80 to 300
cans per minute. The annual capacity is in excess of 20,000 tons of tinplate.

The Quality Management system of the company has been certified to conform to
International Quality Management System Standard ISO 9001 2000 .The
Company has placed emphasis on In house Research and Development of new
products, which has paid rich dividends over the years.

Nestle, Heinz, Hindustan Lever, Wockhardt, Gujarat Dairy, Britannia, Tata Coffee,
DS Group, Vadilal, Pepsi , Coca-Cola, Britannia, Amul, Tata Coffee, Haldiram and
Asian Paints are some of the notable clients of the company.

The product range of the company includes various types of tin containers
suitable for packing baby foods, edible oils, paints, pure ghee, lubricants, coffee,
processed foods, pesticides etc.

The company's Quality efforts have been well appreciated and it has won the
Cans of the year award in 2003,certificate of export excellence in 2002,Gold
award for best can company in 1997 and General award in 1996.

Financial Performance of the Company

The total sales of the company for financial year 2003-2004 were Rs.130.66
crores The Profit before tax (after interest and depreciation charges) was Rs.2.61
crores and the profit after tax Rs. 1.60 crores. While the sales showed an increase
of 12.53 percent the net profit remained steady. The Company has been
successful in reducing interest cost considerably by Rs. 54.49 lacs.

For the half year ended 30 Sept 2004 the company has posted heartening results
with sales increasing by 31.08 percent, while net profit increased by over 58.49
percent compared to the corresponding period in the previous financial year. EPS
for 2004-2005 on annualized works out to 6.22.The turnover from flexible
packaging division contributed to Rs54 lacs . The company has exceeded the net
profit figures of the previous financial year in the first half itself and is expected to
repeat the same in the second half.

Future Prospects

The company has been successful in making inroads in the area of flexible
packaging by leasing out facilities at M/s Nutech Packaging Limited, Industrial
Area, and Ghaziabad for manufacture of flexible packaging. The company plans
to go in for a Greenfield project soon.

Plans are also on the anvil to undertake tin packaging for non-food products such
as paints, shoe polish and other polishes.

The Hindustan Tin Plate share is trading at Rs 26 .The Company has posted
impressive performance over the years. The company has a low equity of 5.43
crores and has been paying consistent dividends over the years. The book value
of the share is 59.78 as on 30 March 2004.

The company is expected to continue its growth momentum due to the bright
prospects for the packaging industry as well diversification in to the flexible
packaging sector.

Many companies in the Printing and packaging sector are quoting at a higher
forward P/E valuation. Some examples are Kaira Can (P/E 39.55, price Rs 239),
oriental container (P/E 8.3, price Rs 42) Shetron (P/E 22.15, price Rs 23) etc. In
comparison Hindustan Tin Works which has made a profit of 1.68 crores with an
Annualized EPS of 6.22 is trading at Rs 26. The forward P/E at the current price is
around 4.66 against a normal industry P/E valuation for tin products
manufacturing companies which is around 12.

The stock merits consideration for investment.

 HTMT: To adopt
both organic &
inorganic growth
strategy
Hinduja TMT has decided to adopt a
hybrid strategy for growth comprising
of both organic and inorganic growth
within and outside the country.

As part of its organic growth strategy

and to enhance its global delivery
model, the company has recently
decided to open a BPO centre in
Mauritius. Apart from using this centre
for executing additional claim
processing business for its most
referenced and satisfied US based
healthcare insurance client, it would
also act as a business continuity
planning centre for the company's
Indian BPO operations, Hinduja TMT
said. A presence in Mauritius would
also enable the company offer French
based BPO services for potential
customers in France given the
availability of French speaking skills in
Mauritius and will it also help the
company overcome cross country
related issues, it added.

Meanwhile, the inorganic growth

strategy of the company is already
well underway with recently
completed buy out of 100% stake in
'Source One Communications Inc.
USA' (SOC) & controlling interest in
Customer Contact Centre Inc,
Philippines (c3). The two acquisitions
added about 1400 additional seats in
3 locations outside India and 22 new
marquee clients in 6 new verticals, the
company said.

Going forward, the company is

101%, Don’t care for Sensex &
NF
Just think it over :Sensex. . . . . . . has NO
Sense & NO SEX. . . . . . . then also so
volatile ??
RDX for Day, Swing & Short
term Investors !!
Dear Traders, What u had lost yesterday (By
trading blindly) . . We can try to compensate
yours loses. . . . . . . . . !!
At 9:55, Just Grab this MNC
stock. . . . !!
(U buy Today, We know. . . . . . Everybody else will buy
in coming days)

Panasonic AVC Networks :

532176
This BABY is traded @ NSE as : PAVCI
SMN Team says. . . . Buy 25000-50000 or
1 lac shares & Forget.
*Have a close eye on 14. 25. . . above
this level it will zoom to 19, 20 level.
*If Today closes above 16. 50 level. . . then
watch a huge triangle breakout and Target of
Rs. 37 not ruled out in coming days.
One side Upper-freeze session will start if u will
read. . . . . . . . . . . . . . . . . . !!
Fundamentally yours. . . . . . . . !!
EQUITY :
Rs. 50 Crore (5crore shares)
Indian Promoters :5. 21%
Matsushita Electric Industrial Company Ltd :
55%
Salora International Ltd :9. 72% (When they
can buy and hold this stock, Do u think u are more
intelligent then these people)
Indian Public : only 13% !!
First grab this stock @ 9:55, and after it
hits upper-freeze visit :
http://www.nationalpanasonicindia.com (It will
take 30-60 minutes to read complete site)
INFOSYS : Yesterday low & 2125 are trend
decider for this stock. For Today's trading,
above 2041 it will zoom to 2064, 2071 &
there after expect a level of 2094, 2100.
Support exist at 2027, 2010.
TCS : In panic, Buy this stock !!Nothing
else. . . . . . . . Stock will zoom to 1500, 1700
level in coming days.
For Today's trading, Buy with stop of 1315,
1300 level. On upper-side crossover above
1332 will take to 1350, 1360 or 1375 level.
RELIANCE : For this month of Jan '05, Have a
close eye on 541 !!Two close above this level will
take to 569, 580 or 599 level. Support exist at
513 level.
Day before yesterday it was mentioned :Stock
was not able to cross 548 and yesterday again it
was written to go short. . . . from 528 it crashed
to 516 in intraday trade.
In decline, Buy this stock :NOTHING ELSE
Block deal of 1crore shares will be there @ open
offer price on Monday.
*Now if this type of NEWS, we can write boldly
then think, How much money our OLC might be
earning.
For Today's trading. . . . . . Above 532 it will
zoom to 537, 539 & there after expect a
level of 548 in hours only.