Buy Midfield Industries; target Rs 55: Sunidhi Securities
Sunidhi Securities is bullish on Midfield Industries (MIL) and has recommended buy rating on the stock with a target price of Rs 55 in its September 4, 2012 reseaech report.
September 05, 2012 / 14:33 IST
Sunidhi Securities is bullish on Midfield Industries (MIL) and has recommended buy rating on the stock with a target price of Rs 55 in its September 4, 2012 reseaech report.
“Midfield Industries, incorporated in 1990 for tapping an emerging niche segment of industrial packaging, MIL started its manufacturing activities in the year 1993 by setting up facilities at IDA Jeedimetla, Hyderabad to manufacture low tensile steel strapping with an installed capacity of 3, 600 tpa. MIL has plants located at Hyderabad (Andhra Pradesh), Thane (Mumbai) and Roorkee (Uttaranchal). The recently installed manufacturing plant at Vasurikhurd, District Thane (Maharashtra) caters to western India, and is the export hub of the organisation. The expansion from time to time has taken its installed capacity of Steel strapping to 18, 000 tpa. Other annual capacity is: Angle boards 100 lakhs meters, Seals 2, 50, 00,000 numbers and Collated nails 840000 coils.”“MIL manufactures two grades of high tensile steel strapping viz., Supreme and Mega Supreme. Supreme grade steel strapping is used for light weight applications and mega supreme grade is used for heavy duty applications. Midfield has manufacturing facility to produce seals which go hand in hand with high tensile steel strapping. MIL is having marketing tie-up with Orgapack, Switzerland, which manufactures a wide range of pneumatic packaging tools. For marketing the Manual tools, it has a tie up with Midwest Industries Inc., USA. Midfield also has in house manufacturing facility for strap paint, which is used for captive consumption. The products find applications in steel plant, steel tubes, cycle, aluminium, copper, brass, automobile, batteries, glass, refractories, graphite, plywood, asbestos, leather, paper, textile, white metals and other engineering industries. Essar Steel, Saint Gobain Glass India, Rashtriya Ispat Nigam, SAIL, BALCO, Tata Steel, NALCO and Hindalco Industries are a few of its marquee clients.”“Today, MIL is one of the few organised players in the highly fragmented Indian packaging industry with a vision to drive multi-fold growth, adding various packaging products & systems, global competence, superior products and services. The improved performance is the natural consequence of its increasing business operation owing to capacity expansions at multiple locations within India. A perceptible change has been witnessed in the industrial packaging industry. The Companies are now offering complete packaging solutions instead of merely supplying packaging consumables. The increasing demand, gives strong revenue visibility for MIL going forward. At the CMP of Rs 40, the share is trading at a P/E of 3.0 xs on FY13E and 2.4x on FY14E. We recommend buy with a target price of Rs 55 in the medium term,” says Sunidhi Securities research report.FIIs holding more than 30% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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