7 May 2015

4QFY15 Results Update | Sector: Others

Sintex Industries
BSE SENSEX
26, 559
Bloomberg

S&P CNX
8,057
SINT IN

Equity Shares (m)

424.7

M.Cap. (INR b) / (USD b)

44.2/0.7

52-Week Range (INR)

136 / 46

1, 6, 12 Rel. Per (%)

-8/10/102

Avg Val (INRm)/Vol 000

647/6693

Free float (%)

66.0

Financials & Valuation (INR b)

Y/E Mar

2015 2016E 2017E

Net sales

70.3

80.9

99.8

EBITDA

12.1

14.2

18.3

Adj. PAT

5.5
13.0

6.0
13.4

8.5
19.1

5.9

3.7

41.7

Adj EPS (INR)

EPS Gr. (%)
BV/Sh. (INR)

110.6 120.8 139.1

RoE (%)

13.4

11.9

14.7

RoCE (%)

12.0

11.2

13.8

6.6

7.0

7.0

P/E (x)

8.0

7.7

5.5

P/BV (x)

0.9

0.9

0.7

EV/EBITDA (x)

6.7

6.2

4.6

Div. Yield (%)

0.7

0.7

0.7

Payout (%)
Valuations

Estimate change
TP change
Rating change

7-11%

CMP: INR104

TP: INR155 (+49%)

Buy

All round beat in estimates; B2G benefits yet to percolate; FCCB concerns easing off
All round beat: Sintex Industries (SINT) 4QFY15 revenue grew 9.7% YoY to
INR21.8b (v/s estimate of INR20.8b). 2pp QoQ expansion in operating margins
translates into EBITDA of INR4b, +14.3% YoY (v/s estimate of INR3.6b). FY15 OPM
stood at 17.2% (+0.8pp YoY). PAT rose to INR2b (26% YoY) on the back of rise in
other income and lower depreciation and interest expense.
Segmental momentum intactB2G benefits yet percolate: Growth momentum
remained healthy in the performing segments viz. prefab (+19% YoY), textile (+40%
YoY) and custom moldings (+16% YoY). However, the benefits of governments
initiativesClean India campaign, toilet projects and mass housing, which are key
to further growth acceleration in prefab and revival in monolithic segment (which
posted lowest revenue since FY09)are yet to percolate.
Capability building continuously boosting prospects: SINT is continuously
enhancing preparedness for opportunities that are likely to come through
governments initiatives in rural area. It is the only company to get approvals for
prefabricated family-size biogas plants in Indiaa vertical that offers untapped
growth lever going forward. In 4QFY15, it bagged large orders for rural RO water
shelter enclosures and healthcare centers, which are new ventures with promising
growth prospect, from a couple of states.
Operations on track with best yet to come; correction offers entry opportunity:
SINTs business cycle is favorably poised with better macro outlook and the muchawaited boost in government spending in related verticals. We are raising FY16/17
EPS by 11%/7% to factor in higher growth in select segments. Our assumption has
upside risk from (a) new sources of revenue through Clean India campaign, and (b)
positive surprise from revival in monolithic business from a low base. FCCB dilution
remains an impediment in 1HFY16, albeit a significant conversion (~82%) is already
behind. After recent corrections, the stock trades at 5.5x FY17E EPS and 4.6x FY17E
EV/EBITDA. We value SINT at 6x FY17E EV/EBITDA, which translates into a fair
value of INR155/share (adjusted for FCCB dilution). Maintain Buy.

Sandipan Pal (Sandipan.Pal@MotilalOswal.com); +91 22 3982 5436

Investors are advised to refer through disclosures made at the end of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Sintex Industries

All round beat; FY15 OPM expands ~1pp YoY

Sintex Industries (SINT)s 4QFY15 revenue grew 9.7% YoY to INR21.76b (v/s est
of INR20.80b). Higher revenue was attributable to better performances in
traditional textile segment, and higher EPC revenue booked in 4Q.
2pp QoQ expansion in operating margins translates into EBITDA at INR4b,
+14.3% YoY (v/s est of INR3.6b). FY15 OPM stood at 17.2% (+0.8pp YoY).
Rise in other income to INR477m (INR95m in 4QFY14) coupled with lower
depreciation (INR711m v/s INR817m YoY) and interest expense (INR861m v/s
INR 1,058m YoY) lead to 26.6% YoY PAT growth to INR2.03b

Exhibit 1: Segmental revenue break-up (INR m)

Verticals
Textiles
Plastics
Building Materials
Prefab
Monolithic and EPC
Tanks
Composites
Domestic
Foreign
Total

1QFY14
1,108
10,131
4,672
2,048
1,869
755
5,459
1,872
3,587
11,281

2QFY14
1,306
12,324
6,444
3,031
2,663
750
5,880
2,351
3,529
13,649

3QFY14
1,516
12,234
5,815
3,215
1,950
650
6,419
2,690
3,729
13,750

4QFY14
1,530
18,340
10,440
3,440
6,060
940
7,900
3,680
4,220
19,870

1QFY15
1,535
11,880
5,670
2,600
2,370
700
6,210
2,530
3,680
13,415

2QFY15
1,710
15,030
8,100
3,960
3,310
830
6,930
2,910
4,020
16,740

3QFY15
1,860
16,400
7,590
4,130
2,610
850
8,810
3,040
5,770
18,260

4QFY15
2,135
19,530
10,400
4,110
5,210
1,080
9,130
4,220
4,910
21,665

FY14
5,460
53,029
27,371
11,734
12,542
3,095
25,658
10,593
15,065
58,645

FY15
7,240
62,840
31,760
14,800
13,500
3,460
31,080
12,700
18,380
70,080

Source: Company, MOSL

Momentum intact in Prefab, building capabilities to tap newer areas

Prefab segment continued its strong momentum with 19% YoY growth (28% in
3Q), along with margin expansion to 28% (v/s 26% QoQ).
Much awaited benefits of governments clean India mission is yet to percolate.
SINT, however, is continuously enhancing its preparedness through capability
building in various product segments. It stands as the only company to get
approvals for prefabricated family size biogas plants in India, which offers
untapped growth lever going forward.
In 4QFY15, it bagged large orders for Rural RO water shelter enclosures and
Healthcare centers from couple of states, which are new ventures with
promising growth prospect.

New capacity aids healthy growth in traditional textile

7 May 2015

Textile segment recorded strong sales growth of 40% YoY (v/s 33% in FY15)
driven by rise in utilization in added capacity; EBITDA margins were down 2.2pp
QoQ to 24%.
Tank segment improved on margins by 1.7pp QoQ to 13.5% (v/s 14% in 4QFY14)
amidst 15% YoY revenue growth to INR1.1b.
Infrastructure segment continues to remain subdued despite higher revenue
booking from EPC segment. Monolithic segment posted ~14% YoY de-growth in
4QFY15 (-33% YoY in FY15). Management focus remains selective on projects
with lesser risk of poor working capital.

Sintex Industries

Composites - benefits new assets and reviving segments percolating

On back of demand recovery in automobile segment along with rise in

penetration into commercial vehicle industry and key customers being engaged
with new technology, domestic composites recorded a 15% YoY revenue growth
with 2.7pp QoQ rise in margins to 22.1%.
Revenue from overseas composite business grew 16% YoY with 1.8pp
improvement in margins to 11.2%, largely led by QE easing on European front
despite depreciation of Euro being an overhang in 2HFY15
Management expects that strong utilization of facilities is key driver to
sustaining overseas growth. Further, penetration in aerospace and defence
sector, macro factors and measures by government would provide adequate
stimulus for enhanced growth of the segment.

Exhibit 2: Strength of operations continues in Prefab

Revenue (INR b)
19

20

17

20

23

23

Margin (%)
27 28

24

26

26

Exhibit 3: New capacity drove textile revenue

Revenue (INR b)

28
20

20

20

19

23

Margin (%)
23

30

25

28

26

20

Source: Company, MOSL

Exhibit 4: Gradual uptick in domestic composites

Revenue (INR b)
20

18

21
14

15

19

19

4QFY15

3QFY15

2QFY15

Source: Company, MOSL

Exhibit 5: Simonin scaled up overseas composites operations

Revenue (INR b)

Margin (%)
26
18

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

1QFY13

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

1.1 1.2 1.2 1.3 1.1 1.3 1.5 1.5 1.5 1.7 1.9 2.1

2QFY13

1.7 2.3 2.8 2.9 2.0 3.0 3.2 3.4 2.6 4.0 4.1 4.1
1QFY13

24

19

22

10

10

10

Margin (%)
9

11

11
9

Revenue (INR b)
19
16

19
14

14

16
15

Revenue (INR b)
11

14
10

12

10

11

10

11

4QFY15

Margin (%)
11

14
10

12

12

13

Source: Company, MOSL

7 May 2015

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

0.6 0.6 0.6 0.9 0.8 0.8 0.7 0.9 0.7 0.8 0.9 1.1

2QFY13

2.2 2.4 3.3 2.4 1.9 2.7 2.0 6.1 2.4 3.3 2.6 5.2

1QFY13

12

1QFY13

3QFY15

Exhibit 7: Tank segment steady

Margin (%)
19

2QFY15

Source: Company, MOSL

Source: Company, MOSL

Exhibit 6: Weakness in monolithic, EPC revenue higher

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

1QFY13

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2.9 2.9 3.7 3.5 3.6 3.5 3.7 4.2 3.7 4.0 5.8 4.9

2QFY13

2.2 2.4 2.6 3.3 1.9 2.4 2.7 3.7 2.5 2.9 3.0 4.2
1QFY13

20

Source: Company, MOSL

3

Sintex Industries

Other updates

Spinning mill expected to commence operations of first 0.1m spindles in

September with phased addition to complete installation of 0.32m by March
2016. Utilization is expected to stand at 20-30% for FY16 and 80-100% FY17
onwards. Spinning has incurred a capex of INR10b till date with INR8b to be
expensed over FY16.
Sintex has bagged large orders of Rural RO water shelter enclosures and
Healthcare centers which is expected to keep its robust growth momentum
ongoing
Almost US$120m of FCCB is converted till 4QFY15 with of US$17m left.
Management expects complete conversion by 1QFY16.

Valuation and views: Business recovery cycle on track

7 May 2015

SINTs business cycle is favorably poised with improvement in macro outlook

and likely uptick in government and private spending in related verticals.
The company will be a major beneficiary from governments strong focus on
wide range of infrastructure and social improvement plans viz. education,
healthcare, sanitation, housing etc.
SINTs most consistent business segment Prefab (20% sales mix and 27% CAGR
in FY12-15) should accelerate further with huge potential in public and private
spending in new set of social initiatives viz. CSR, Swachh Bharat Mission etc.
Revival in mass housing projects through better clarity on government plan in
upcoming union budget should aid required drive to subdued monolithic vertical
(11% sales mix and -12% CAGR over FY12-15).
Automobile segment after a subnormal 3-4 years should witness revival in both
passenger and commercial segments. This will drive growth in domestic
composites, while overseas business (25% sales mix and 16% CAGR over FY1215) has been gradually becoming consistent with stabilization of recent
acquisitions.
We are raising FY16/17 EPS by 11%/7% to factor in higher growth in traditional
textile and domestic composites. Our base case revenue/EBITDA CAGR over
FY15-17E is ~19%/22%, factors in (a) 19-20% growth in prefab and textile (in line
with management guidance), (b) 15-16% growth in domestic and overseas
composites (management guidance of ~20% in FY16), and (3) ~15% growth in
monolithic segment as phase of recovery.
Our assumption has upside risk from (a) new sources of revenue contribution in
prefab segment through clean India campaign, and (b) positive surprise from
revival in monolithic business from low base.
FCCB dilution remains an impediment albeit a significant conversion (~82%) is
behind. After recent corrections, the stock trades at 5.5x FY17E EPS, 4.6x FY17E
EV/EBITDA. We value SINT at 6x FY17E EV/EBITDA. This translates into fair value
of INR155/share (adjusted for balance FCCB dilution). Maintain Buy.

Sintex Industries
Exhibit 8: Trend in P/E

Exhibit 9: Trend in EV/EBITDA

P/E (x)
5 Yrs Avg(x)

35

15 Yrs Avg(x)
10 Yrs Avg(x)

28

9.5

21

7.5
10.0

14

Peak(x)

Avg(x)

6.6
5.1

3.5

7.2

Min(x)
10.6

5.5

7.7

7.8

EV/EBDITA(x)

11.5

2.4
May-15

Mar-14

Jan-13

Nov-11

Sep-10

Jul-09

Apr-08

Feb-07

Dec-05

Oct-04

Aug-03

Jun-02

Jan-00

May-15

Mar-14

Jan-13

Nov-11

Sep-10

Jul-09

Jun-08

Apr-07

Feb-06

Dec-04

Oct-03

Aug-02

Jun-01

Apr-00

Exhibit 10: We estimates Consistent growth in revenue

over FY15-17 (%)

Apr-01

1.5

Exhibit 11: along with gradual improvement in margins

19%
18%

15

20

15

23

FY17E

14

FY16E

36

FY15

FY14

35

FY13

18%

17%

16%

18%
17% 17%

16%

18%

16%

Source :Company, MOSL

FY17E

FY16E

FY15

FY14

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY12

FY11

FY10

FY09

-1

Source :Company, MOSL

Exhibit 12: Sales growth (%) across segment

7 May 2015

-33

-6

20
16
12

16
22
22
12

FY17E

21

FY16E

14
12
12
12

FY15
12

15
15

FY14

-11

-19

12

20
10

FY13

20
26
20
20

FY12

33
16
8

While Prefab is likely to

maintain healthy growth
with high government focus
on social initiatives,
additional boost will come
from (a) scale up in textile
segment, (c) recovery in
monolithic and domestic
composites, and (d)
stabilization of overseas
business

Textiles

Prefab

Monolithic

Tanks

Domestic
Composites

Foreign
Composites

Source: Company, MOSL

Sintex Industries

Exhibit 13: Capex to keep FCFE negative in FY16 (INR b)

Exhibit 14: Return ratios to improve FY17 onwards (%)

4.1
0.0

Source: Company, MOSL

7 May 2015

14

14

11

13

14
11

12

15
FY17E

21

12

FY16E

16

11

FY14

10

10

FY13

11

FY15E

15

FY12

19
FY09

19
FY08

20

-12.4
FY17E

FY14

FY13

FY12

FY11

FY10

FY09

FY08

FY07

-10.9

FY07

-6.9

-9.8

13

-4.9

FY16E

-5.9

FY15E

-4.7 -5.2

14

FY11

-1.2

FY10

15

Source: Company, MOSL

Sintex Industries
Exhibit 15: Key operating matrix and assumptions
Sales Growth (%)
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic Composites
Foreign Composites
Sales Growth (%)
Total EBITDA Margin (%)
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign
Sales Mix
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign
EBITDA Mix
Textiles
Plastics
Building Materials
Prefab
Monolithic
Tanks
Composites
Domestic
Foreign

FY07

FY08
95
10
126
69
39
0
18
267
84
0

FY09
35
7
40
23
1
115
-9
59
5
113

FY10
7
-7
9
15
-16
59
15
5
15
-1

FY11
36
26
38
51
14
86
22
25
25
25

FY12
-1
8
-2
-7
12
-19
12
4
21
-6

FY13
14
0
16
11
35
-8
22
22
29
16

FY14
15
16
15
22
20
-11
14
9
0
16

FY15
20
33
19
16
26
-33
12
21
20
22

FY16E
15
20
9
-1
20
15
12
20
16
22

FY17E
23
10
9
6
20
15
12
12
12
12

19
28.8
16.0
15.2
16.7
0.0
9.8
17.9
17.9
0.0

18
27.6
16.1
17.2
18.6
19.0
9.0
14.8
22.2
7.3

17
27.8
15.5
18.1
20.1
18.0
9.0
12.5
14.8
11.4

16
20.0
15.9
17.1
16.6
19.0
10.1
14.8
20.2
11.7

18
24.0
17.5
19.0
20.5
19.5
11.0
15.0
21.0
11.6

16
23.0
15.4
15.7
20.0
15.0
10.0
15.0
19.2
11.9

16
21.0
15.2
17.2
19.0
17.5
10.0
13.2
19.0
8.5

17
24.2
16.3
19.1
25.4
17.8
11.7
13.3
19.5
9.0

17
25.0
16.5
18.9
26.0
19.3
12.0
14.1
20.0
10.0

18
24.5
16.7
19.9
24.0
19.0
12.0
14.0
19.9
10.1

18
24.0
17.1
21.2
24.0
19.0
11.0
13.9
19.7
10.0

27
73
52
41
0
11
21
21
0

15
85
45
29
9
7
40
20
20

12
88
41
22
15
5
47
15
31

11
89
44
17
22
5
46
17
29

10
90
49
14
30
4
42
15
27

11
89
46
16
24
5
44
19
25

9
91
44
19
20
5
46
21
26

9
91
47
20
15
5
44
18
26

10
90
45
21
9
5
44
18
26

11
85
39
22
9
5
46
18
28

10
75
34
21
8
4
42
17
25

40
60
41
35
0
6
19
19
0

24
76
44
30
10
3
33
25
8

20
80
44
26
16
2
34
13
21

13
87
46
17
25
3
41
20
21

13
87
51
16
32
3
34
18
17

15
85
44
20
23
3
40
22
18

12
88
49
23
22
3
39
25
14

13
87
52
30
16
4
34
21
14

15
85
49
32
9
3
36
21
15

15
81
44
30
9
3
37
21
16

13
70
39
28
8
3
32
18
14

Source: Company, MOSL

7 May 2015

Sintex Industries

Financials and valuations

Income Statement
Y/E March

2010

2011

2012

2013

2014

2015

2016E

2017E

33,192
5.8
5,380
16.2
3.1
1,445
3,936
731
392
486
4,083
772
18.9
3,311
10.1
1.2
3,290
2,896
-6.5

44,837
35.1
8,155
18.2
51.6
1,491
6,664
1,089
455
62
6,092
1,508
24.8
4,584
10.2
38.4
4,600
4,553
57.2

44,535
-0.7
7,177
16.1
-12.0
1,678
5,499
1,358
505
-466
4,179
1,160
25.0
3,019
6.8
-34.1
2,970
3,535
-22.4

51,079
14.7
7,695
15.1
7.2
2,054
5,641
1,726
860
-903
3,871
669
14.0
3,202
6.3
6.0
3,166
4,141
17.2

58,645
14.8
9,642
16.4
25.3
2,548
7,094
2,894
774
-161
4,814
1,180
23.7
3,634
6.2
13.5
3,621
3,808
-8.1

70,348
20.0
12,106
17.2
25.6
2,605
9,500
2,835
682
-218
7,130
1,863
25.4
5,267
7.5
44.9
5,245
5,506
44.6

80,941
15.1
14,167
17.5
17.0
3,765
10,402
3,231
500
-100
7,571
1,688
22.0
5,884
7.3
11.7
5,859
6,009
9.1

99,815
23.3
18,320
18.4
29.3
4,184
14,137
3,321
500
0
11,316
2,829
25.0
8,487
8.5
44.2
8,462
8,512
41.7

2010

2011

2012

2013

2014

2015

2016E

2017E

Equity share capital

Convertible share warrants
Reserves
Networth
Minority Interest
Total Debt
Net deferred tax
Capital employed
Gross fixed assets
Less: Acc. Depn.
Net fixed assets
Goodwill
Capital WIP
Investments

271
0
19,198
19,469
190
26,303
1,693
47,655
25,581
7,746
17,834
2,665
1,716
2,470

271
0
23,745
24,016
0
27,736
2,057
53,808
33,276
9,156
24,120
2,190
714
3,775

271
0
26,212
26,483
0
30,913
2,381
59,778
37,266
10,863
26,403
2,179
2,531
1,423

311
283
30,656
31,250
0
37,139
2,878
71,267
42,326
13,332
28,995
2,157
3,597
1,303

311
283
34,844
35,438
0
40,630
3,289
79,358
51,783
15,879
35,903
1,865
1,500
3,058

425
0
46,553
46,978
0
46,554
4,694
98,226
66,170
18,484
47,686
1,550
5,000
5,281

447
0
53,545
53,992
0
47,361
4,694
106,047
77,670
22,249
55,421
1,550
4,000
4,508

447
0
61,692
62,139
0
48,361
4,694
115,194
86,670
26,433
60,237
1,550
3,000
4,008

Curr. assets
Inventory
Debtors
Cash & Bank
Loans, Adv. & Others
Current liab. & prov.
Creditors
Provisions

30,983
3,411
10,121
9,295
8,157
8,015
4,029
3,507

33,655
3,770
14,278
9,861
5,746
10,647
6,522
3,626

37,350
3,955
16,983
7,206
9,206
10,108
6,514
3,594

45,003
4,531
18,596
8,902
12,974
9,787
8,504
1,284

48,559
4,511
22,230
2,720
19,099
11,528
10,005
1,523

53,535
5,170
24,608
4,250
19,507
14,827
13,364
1,462

58,713
6,049
27,720
1,660
23,284
18,146
16,465
1,681

69,542
6,654
30,081
6,827
25,979
23,144
21,211
1,934

Net current assets

Total Assets
E: MOSL Estimates

22,969
47,655

23,009
53,809

27,242
59,778

35,216
71,268

37,031
79,358

38,709
98,226

40,567
106,047

46,398
115,194

Operating income
Change (%)
EBITDA
EBITDA Margin (%)
Change (%)
Depreciation
EBIT
Interest
Other income
Extraordinary items
PBT
Tax
Tax / PBT (%)
PAT before MI
PAT margin (%)
Change (%)
Consolidated PAT
Adj. Con. PAT
Change (%)

Balance Sheet
Y/E March

7 May 2015

(INR Million)

Sintex Industries

Financials and valuations

Ratios
Y/E March

2010

2011

2012

2013

2014E

2015

2016E

2017E

Basic (INR)
EPS
Growth (%)
Cash EPS
Book value
Divd. Per Share
Payout incl. Div. Tax (%)

10.7
-6.5
17.4
71.8
0.6
5.8

16.8
57.2
22.5
88.6
0.7
4.5

13.0
-22.4
17.5
97.7
0.7
6.7

13.3
2.1
17.0
100.4
0.7
7.8

12.2
-8.1
19.9
113.9
0.7
7.0

13.0
5.9
18.6
110.6
0.7
6.6

13.4
3.7
21.7
120.8
0.7
7.0

19.1
41.7
28.4
139.1
0.7
7.0

8.8
6.5
1.2
1.2
7.4
0.6

8.6
6.7
1.1
1.2
8.1
0.6

9.3
5.7
1.0
1.2
7.3
0.6

8.0
5.6
0.9
1.2
6.7
0.7

7.7
4.8
0.9
1.1
6.2
0.7

5.5
3.7
0.7
0.8
4.6
0.7

Valuation (x)
P/E
Cash P/E
Price/Book value
EV/Sales
EV/EBITDA
Dividend yield (%)
Profitability ratios (%)
Average RoE
Average RoCE

15.9
10.0

20.9
14.6

14.0
11.0

14.3
10.3

11.4
10.9

13.4
12.0

11.9
11.2

14.7
13.8

Turnover ratios
Debtors (days sales)
Inventory (days sales)

111
38

116
31

139
32

133
32

138
28

128
27

125
27

110
24

Leverage ratio
Debt/Equity (x)

0.8

0.6

0.8

0.9

1.0

0.8

0.8

0.9

2010

2011

2012

2013

2014E

2015

2016E

2017E

PBT before EO items

Add : Depn. & Amort.
Interest
Less : Direct taxes
(Inc)/Dec in WC
CF from opn. incl. EO

3,576
1,446
731
772
-7,480
-2,013

6,046
1,491
1,089
1,508
526
7,706

4,596
1,678
1,358
1,160
-6,888
-882

4,738
2,054
1,726
669
-6,278
668

4,962
2,548
2,894
1,180
-7,997
1,065

7,326
2,605
2,835
1,863
-147
10,538

7,646
3,765
3,231
1,688
-4,448
8,405

11,291
4,184
3,321
2,829
-664
15,301

(Inc)/Dec in FA
(Pur)/Sale of invts.
CF from invt. activity
FCF
Inc/(Dec) in Net Worth
Inc/(Dec) in Debt
Less : Interest paid
Divd & Divd Tax

-1,663
-651
-2,315
-4,327
-680
3,339
731
191

-6,300
-1,305
-7,605
101
153
1,432
1,089
206

-5,766
2,352
-3,414
-4,296
-297
3,178
1,358
205

-5,690
120
-5,570
-4,902
1,855
6,226
1,726
254

-7,067
-1,755
-8,822
-7,757
821
3,492
2,894
254

-17,573
-2,223
-19,796
-9,258
6,641
5,924
2,835
347

-10,500
772
-9,728
-1,323
1,520
807
3,231
365

-8,000
500
-7,500
7,801
50
1,000
3,321
365

CF from fin. activity

Inc/Dec in cash
Add: Beginning balance
Closing balance
E: MOSL Estimates

1,938

464

1,641

6,597

1,576

10,789

-1,267

-2,634

-2,390
11,685
9,295

566
9,295
9,861

-2,655
9,861
7,206

1,695
7,206
8,901

-6,181
8,902
2,721

1,531
2,720
4,250

-2,590
4,250
1,660

5,167
1,660
6,827

Cash Flow Statement

Y/E March

7 May 2015

(INR Million)

Sintex Industries

Corporate profile: Sintex Industries

Company description

Exhibit 18: Sensex rebased

Sintex Industries (SINT) is one of the most

integrated plastics processors in India. The key
areas of operation are Building materials (Prefab
and monolithic construction), custom moldings,
storage products and textiles. Building Materials
business caters to two kinds of low-cost
construction opportunities - (1) Housing, via
monolithic construction, and (2) Non-housing, via
prefab structures (rural classrooms and healthcare
clinics, sanitation, army barracks, worker shelters,
etc). The company will continue to benefit from the
rising trend of "plasticization", i.e. substitution of
metals by plastic composites across industries,
mainly autos, electrical, Aerospace, and healthcare,
defense, etc.

Exhibit 17: Shareholding pattern (%)

Exhibit 18: Top holders

Mar-15

Dec-14

Mar-14

Promoter

34.0

38.7

41.0

DII

2.2

5.1

7.0

FII

28.2

19.5

7.8

Others

35.6

36.8

44.1

Holder Name

% Holding

Government of Singapore
Goldman Sachs (Singapore) PTE
LIC of India Market Plus -1 Growth Fund
Monetary Authority of Singapore
LIC of India

4.7
2.5
1.6
1.4
1.4

Note: FII Includes depository receipts

Exhibit 19: Top management

Exhibit 20: Directors

Name

Designation

Name

Name

Dinesh B Patel

Chairman

Dinesh B Patel

Indira J Parikh*

Arun P Patel

Vice Chairman

Arun P Patel

Lavkumar Kantilal*

Amit D Patel

Managing Director

Amit D Patel

Ramnikbhai Ambani*

Rahul A Patel

Managing Director

Rahul A Patel

Ashwin Lalbhai Shah*

S B Dangayach

Managing Director

S B Dangayach

Narendra Kumar Bansal*

Rajesh B Parikh*
*Independent

Exhibit 21: Auditors

Exhibit 22: MOSL forecast v/s consensus

MOSL
forecast

Consensus
forecast

Variation (%)

FY16

13.4

14.6

-8.2

FY17

19.1

18.1

5.8

Name

Type

EPS (INR)

Deloitte Haskins & Sells

Kiran J Mehta & CO
V H Shah

Statutory
Cost Auditor
Cost Auditor

7 May 2015

10

Sintex Industries

NOTES

7 May 2015

11

Disclosures

This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company(ies) and/sector(s), if any, covered
in theIndustries
report and may be
Sintex
distributed by it and/or its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does
not constitute an offer, invitation or inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not
for public distribution and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider
whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as
up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a
some companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or
its affiliates are seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this
material may educate investors on investments in such business. The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other
parties for the purpose of gathering, applying and interpreting information. Our research professionals are paid on the profitability of MOSt which may include earnings from investment banking and other business.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders,
and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary
trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing
among other things, may give rise to real or potential conflicts of interest. MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position
in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation
or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with
respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations
made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as
such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set
of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or
employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of
its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is
based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSts interpretation of the data, information and/or opinions
provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or
summary of the securities, markets or developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to
update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way
responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time,
any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on
this report or for any necessary explanation of its contents.
Most and its associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities
mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the
report.
Motilal Oswal Securities Limited is under the process of seeking registration under SEBI (Research Analyst) Regulations, 2014.
There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be
directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation
of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee

SINTEX INDUSTRIES LTD

No
No

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.

For U.S.

Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In
addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the
United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or
intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major
institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the
"Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning
agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL,
and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.

For Singapore

Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors
Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to
accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Anosh Koppikar
Kadambari Balachandran
Email : anosh.Koppikar@motilaloswal.com
Email : kadambari.balachandran@motilaloswal.com
Contact : (+65)68189232
Contact : (+65) 68189233 / 65249115
Office Address : 21 (Suite 31),16 Collyer Quay,Singapore 04931

Motilal Oswal Securities Ltd

7 May 2015

Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com

12