Financial Weekly

SMART 29th November 2020 to 5 th

December 2020 17
INVESTMENT

SMART
BUY OF THE WEEK
Dark Horse
Dark Horse-1
T & I GLOBAL LTD
(522294) (95.40) (Face Value Rs.10)
T & I GLOBAL LIMITED (TIGL) is a leading manufacturer and exporter of Tea Processing
Machinery with the expertise to supply customized processing equipment for CTC, Orthodox
& Green Tea. TIGL has two full fledged manufacturing facilities in India - at Kolkata the
capital city of West Bengal, and at Coimbatore, the industrial city of Tamil Nadu. TIGL is the
only Tea Machinery Manufacturing Company which has a 1000 acre Tea Estate in North
Bengal. TIGL is the only Tea Machinery Manufacturing company which produces 8,00,000
Kgs of Tea (Black CTC & Green Tea per annum).
With an equity capital of Rs.5.07 crore and reserves of Rs.50.81 crore, TIGL's share book
value works out to Rs.110. The promoters hold 53.30% of the equity capital, which leaves
46.70% stake with the investing public. Promoters have increased their stake by 1.56%
during January 2020 to June 2020.
For Q2FY21, its net profit stood to Rs.3.78 crore on sales of Rs.24.76 crore fetching an
EPS of Rs.7.47. For H1FY21, its net profit stood to Rs.8.45 crore on sales of Rs.51.13 crore
fetching an EPS of Rs.16.68.
Currently, the stock trades at a P/E of 4.3x.
Investors can accumulate this stock with a stop loss of Rs.76. It may
give very good returns in medium to long term.

Cont....
Financial Weekly

SMART 29th November 2020 to 5 th

December 2020 18
INVESTMENT

Dark Horse-2
SHILP GRAVURES LTD
(513709) (80.80) (Face Value Rs.10)
Incorporated in 1989, Ahmedabad
based Shilp Gravures Limited manufac-
Particulars 3 Months Ended
Q2FY21 Q2FY20 % Var.
tures and sells engraved copper rollers in
Sales 19.70 18.85 4.5
India. It operates through two segments,
PBT 4.48 0.34 1218
Engraved Copper Roller and Wind Mill.
PAT 4.20 0.28 1400
The company offers gravure cylinders,
including electro-mechanically and mechanically engraved, chemically etched, and laser
rollers; and flexo plate processing, base shell, pre-press, and embossing products for use in
flexible packaging, anilox rollers, PVC flooring, decorative laminates, specialty coatings,
artificial leather, gift wrapper, security printing, transfer printing, fine text, label, ceramic
anilox roller, embossing, and flexo colage applications. It also generates energy through
wind mills.
The Company has equity of just Rs.6.15 crore while company has huge reserve of around
Rs.61.24 crore. Promoters hold 60.80% while investing public hold 39.20% stake in the
company. Its share book value works out to Rs.110 and the price to book value ratio stands
at just 0.72x.
During Q2FY21, net profit soared 1400% to Rs.4.20 crore from Rs.0.28 crore in Q2FY20
on sales of Rs.19.70 crore fetching an EPS of Rs.6.83.
Its recent high rate was Rs.179 which was formed April 2018. Stock almost corrected
55% from its recent high. At CMP, SGL trades at PE ratio of just 12.5x earnings.
Investors can accumulate this stock with a stop loss of Rs.60. It may give
very good returns in medium to long term.

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