Sintex Industries (SNTX.BO, Buy, PT Rs240, 66% upside) UBS: India Mid-Caps TOP PICKS - September 2011

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• A key beneficiary of the government’s non-cyclical and
growing social spending (Building products segment: 50%
of FY11 EBITDA)
• Custom moulding (35% of FY11 EBITDA) to benefit from
industrial recovery
• Good execution ability, in-house manufacturing capability,
experience, cost control, significant scale; Acquisitions
provides exposure to new segments - wind energy and
aerospace
• Stock re-rating potential - improving balance sheet,
divestment of unrelated investments, a large monolithic
construction order book, positive FCF
• Investors concerns allayed by: a.) order-book visibility b.) no
un-related diversification c.) investments in only captive
power
• Shareholding: Promoter 35%
• Valuation: SOTP valuation. Implied FY13E PE of 11.3x

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