Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
glass (bottles) manufacturer in India with a market share of 55%. Container
glass market in India is growing at 12%p.a. driven by demand from end user
industries like liquor, F&B and pharmaceutical products. HNGI caters to
40%-80% of glass bottle requirement for its customers, which coupled with
duopolistic nature of the industry allows for pricing power.
Strong growth for Indian glass container market: Rising urbanization,
increasing usage of branded products and expansion of modern retail
formats are driving 12% growth in USD1B glass containers market in India.
Key end users include liquor (60%), pharmaceuticals (20%), food (10%)
and carbonated drinks (5%).
HNGI is market leader with 55% share, selling to fast growing end user
industries: Its key customers include companies like UB Group, Nestle,
Unilever, Nestle, Pepsi, Coca Cola, Dabur, Cipla and GSK. - procuring
between 40%-80% of their glass bottle requirements in India from HNGI.
The market has duopolistic characteristics, which allows for pricing power.
Capacity expansion, entry in float glass to drive growth: HNGI is in the
process of expanding its capacity from current 3,250TPD to 5,650TPD by
FY15 in order to cater to increasing demand. It has also recently entered the
float glass market, through its associate company HNGFL in which it has
47.4% interest. HNGFL operates a 600TPD plant has rapidly gained market
share in the clear glass segment (21% pan India, 30% in west India).
Valuations and stock performance: Based on Bloomberg consensus
estimates, HNGI is trading at 6.5x FY12E P/E and 4.6x FY13E P/E. On a
P/BV basis, it is trading at 1.1x FY12E and 0.9x FY13E v/s FY12E ROE of
14%. The stock has outperformed the Sensex by 2.8% over past 3m, but
underperformed by 3.2% over a 12m period.
NOTE: THIS DOCUMENT IS INTENDED AS INFORMATION ONLY AND NOT AS
A RECOMMENDATION FOR ANY STOCK. IT CONTAINS FACTUAL
INFORMATION, OBTAINED BY THE ANALYST DURING MEETINGS WITH
MANAGEMENT. J.P. MORGAN DOES NOT COVER THIS COMPANY AND HAS
NO RATING ON THE STOCK.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
glass (bottles) manufacturer in India with a market share of 55%. Container
glass market in India is growing at 12%p.a. driven by demand from end user
industries like liquor, F&B and pharmaceutical products. HNGI caters to
40%-80% of glass bottle requirement for its customers, which coupled with
duopolistic nature of the industry allows for pricing power.
Strong growth for Indian glass container market: Rising urbanization,
increasing usage of branded products and expansion of modern retail
formats are driving 12% growth in USD1B glass containers market in India.
Key end users include liquor (60%), pharmaceuticals (20%), food (10%)
and carbonated drinks (5%).
HNGI is market leader with 55% share, selling to fast growing end user
industries: Its key customers include companies like UB Group, Nestle,
Unilever, Nestle, Pepsi, Coca Cola, Dabur, Cipla and GSK. - procuring
between 40%-80% of their glass bottle requirements in India from HNGI.
The market has duopolistic characteristics, which allows for pricing power.
Capacity expansion, entry in float glass to drive growth: HNGI is in the
process of expanding its capacity from current 3,250TPD to 5,650TPD by
FY15 in order to cater to increasing demand. It has also recently entered the
float glass market, through its associate company HNGFL in which it has
47.4% interest. HNGFL operates a 600TPD plant has rapidly gained market
share in the clear glass segment (21% pan India, 30% in west India).
Valuations and stock performance: Based on Bloomberg consensus
estimates, HNGI is trading at 6.5x FY12E P/E and 4.6x FY13E P/E. On a
P/BV basis, it is trading at 1.1x FY12E and 0.9x FY13E v/s FY12E ROE of
14%. The stock has outperformed the Sensex by 2.8% over past 3m, but
underperformed by 3.2% over a 12m period.
NOTE: THIS DOCUMENT IS INTENDED AS INFORMATION ONLY AND NOT AS
A RECOMMENDATION FOR ANY STOCK. IT CONTAINS FACTUAL
INFORMATION, OBTAINED BY THE ANALYST DURING MEETINGS WITH
MANAGEMENT. J.P. MORGAN DOES NOT COVER THIS COMPANY AND HAS
NO RATING ON THE STOCK.
No comments:
Post a Comment