ALPS INDUSTRIES : BSE SCRIP CODE 530715
Alps Industries Ltd. (formerly known as Alps Textiles Ltd.) was promoted by Shri K.K. Agarwal a well known technocrat and industrialist along with his associates in the year 1972. The Company is engaged in the manufacturing and export of home furnishings and selling it's product range of venetian and vertical blinds, drapery rods, and other interior decorative and architectural items under the established brand name of VISTA LEVOLOR. The company is in agreement with Levolor Lorentzen Inc., presently known as Levolor Corporation, one of the leading manufacturer of window coverings in U.S.A., to sell and manufacture in India the line of `Levolor' Products exclusively.
Alps Industries Ltd. (formerly known as Alps Textiles Ltd.) was promoted by Shri K.K. Agarwal a well known technocrat and industrialist along with his associates in the year 1972. The Company is engaged in the manufacturing and export of home furnishings and selling it's product range of venetian and vertical blinds, drapery rods, and other interior decorative and architectural items under the established brand name of VISTA LEVOLOR. The company is in agreement with Levolor Lorentzen Inc., presently known as Levolor Corporation, one of the leading manufacturer of window coverings in U.S.A., to sell and manufacture in India the line of `Levolor' Products exclusively.
Diversifying Into the range of interior decoratives, the company introduced Aluminium Panels for False Ceiling. AIL has introduced a wide range of home furnishing products using naturally-grown coloured cotton, which has a significant demand in overseas market.
Alps Industries, poineers in window fashions, has introduced laminate wooden floorings under the Vista Floor Fashions brand. The company which has been expanding its horizon in home decor, has also launched another new product – bed co-ordinates under the Vista Home fashions brand. The Company has introduced Mistral, a new drape system under the Vista Levolor brand name. The Company has also launched the construction of a vertical portal on interiors industry. Alps Industries has introduced Le Pashmina branded shawls. It is claimed to be the first time that such branded shawls are being launched in India. The company launched a new portal on interior called www.Improveinteriors.com. The portal reportedly caters to individuals as well as architects, designers and contractors.
Financials
The company has a share capital of 34.5 crores made up of 3.45 crore shares of Rs.10.00 each. Almost 32 percent of the share capital is owned by the promoter group. Institutions hold about 29 percent of which FII holding is 17.5 percent. Leading institutions like Bank of New York, State Bank of India, General Insurance Corpn. of India, Morgan Stanley and some Mutual Funds have substantial holdings in the company.
The company has been performing exceedingly well in the past few years. It came out with excellent Sept. 07 qtr. Numbers which showed a net profit of about 10 crores which is 20 percent growth on YOY.
For the entire year 2006-07, the company declared a net profit of 30 crores, while the profit for H.Y. 2007-08 has already crossed 18 crores. With this trend the company may end up the full year with net profit of well over 38 crores and an eps of over 10.
The company’s share capital is 34.5 crores and reserves are 272 crores, commanding a book value of 88. In due course, the company may be a bonus candidate too.
If we take the general trend of trading at forward earnings, even if the share should trade at a conservative PE vis-a-vis FY 07-08 earnings viz. Rs.10, the share should command a valuation of at least 70.00 by now. Considering this estimate, the share is available at a very cheap rate of Rs.51.00 levels now.
The year’s high was Rs.85.70 and low was Rs.41.90.
Our earning projections
FY 07-08 Net Profit : 38 Crores EPS 10.85
FY 08-09 Net Profit : 47 Crores EPS 13.62
FY 09-10 Net Profit : 60 Crores EPS 17.00
Presently the share should command a valuation of at least 70 going by the forward earnings. Our share price projections are 90 by April 2008, 135 by April 2009 and 180 by 2010.
Presently the share appears to be a bit subdued because people think it is a pure textile play. This is not the case.
ALPS IS A FUNDAMENTALLY STRONG COMPANY.
People with a longer time horizon can safely invest.
The company has a share capital of 34.5 crores made up of 3.45 crore shares of Rs.10.00 each. Almost 32 percent of the share capital is owned by the promoter group. Institutions hold about 29 percent of which FII holding is 17.5 percent. Leading institutions like Bank of New York, State Bank of India, General Insurance Corpn. of India, Morgan Stanley and some Mutual Funds have substantial holdings in the company.
The company has been performing exceedingly well in the past few years. It came out with excellent Sept. 07 qtr. Numbers which showed a net profit of about 10 crores which is 20 percent growth on YOY.
For the entire year 2006-07, the company declared a net profit of 30 crores, while the profit for H.Y. 2007-08 has already crossed 18 crores. With this trend the company may end up the full year with net profit of well over 38 crores and an eps of over 10.
The company’s share capital is 34.5 crores and reserves are 272 crores, commanding a book value of 88. In due course, the company may be a bonus candidate too.
If we take the general trend of trading at forward earnings, even if the share should trade at a conservative PE vis-a-vis FY 07-08 earnings viz. Rs.10, the share should command a valuation of at least 70.00 by now. Considering this estimate, the share is available at a very cheap rate of Rs.51.00 levels now.
The year’s high was Rs.85.70 and low was Rs.41.90.
Our earning projections
FY 07-08 Net Profit : 38 Crores EPS 10.85
FY 08-09 Net Profit : 47 Crores EPS 13.62
FY 09-10 Net Profit : 60 Crores EPS 17.00
Presently the share should command a valuation of at least 70 going by the forward earnings. Our share price projections are 90 by April 2008, 135 by April 2009 and 180 by 2010.
Presently the share appears to be a bit subdued because people think it is a pure textile play. This is not the case.
ALPS IS A FUNDAMENTALLY STRONG COMPANY.
People with a longer time horizon can safely invest.
4 comments:
Hello Sir,
Excellent analysis done.
Also if you could tell the revised price targets based on the news that they are planning to get into power sector through their 100% owned subsidary.
Thanks,
Abhishek
Dear Abhishek,
My enquiries reveal that Alps is setting up subsidiary which will be establishing power plants. But the subsidiary may be a Private Limited Company whose shares may not be listed. Accordingly, it may have to only depend on the profitability which may accrue after some time. Therefore, I am not tempted to revise my target much. Since you have gone through my blog, you may take a safe 15 - 20 percent increase over the targets laid down by me.
Kashiwala
Dear Abhishek,
My enquiries reveal that Alps is setting up subsidiary which will be establishing power plants. But the subsidiary may be a Private Limited Company whose shares may not be listed. Accordingly, it may have to only depend on the profitability which may accrue after some time. Therefore, I am not tempted to revise my target much. Since you have gone through my blog, you may take a safe 15 - 20 percent increase over the targets laid down by me.
Kashiwala
Hello Sir,
As you have witnessed in the last two session Alps industries has lost more than 30% and is currently trading at 57 level.
Do you think this stock is manipulated by Operators or just people are booking profits and getting ready to buy at lower levels?
What should people like me do who have entered at higher levels? just buy at this level and avg our price? or book our losses and exit?
Please advice...
Thanks & Regards,
Abhishek
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