PEARL POLYMERS LTD.

PEARL POLYMERS LTD. BSE SCRIP CODE 523260 MANUFACTURERS OF PEARLPET PLASTIC CONTAINERS

Pearl Polymers Ltd. is one of the largest plastic Processors in India and the company has production facilities for manufacturing PVC compounds, polypropylene, brown films, readymade garments, injection moulding of plastic products, Blow moulding of PET Bottles and containers in various locations in North & West India. The company is the first and largest manufacturer of PET Bottles, Jars and containers in India under the brand name PEARL PET. The Company has also obtained approval for packaging of pesticides in PET Bottles. In 1984 - The company adopted Japanese Technology to produce polyethylene terphthalate (PET) Bottles. To strengthen its base, the Japanese Technology was further enhanced with technical tie up with M/s Fibrenyle Ltd., U.K.

The company has tied up with major user companies of mineral water, CSD, squash etc., to effectively book the capacity being created. Realizing the potential of a food grade and recyclable polymer as versatile as PET (PolyEthylene Terephthalate), Pearl Polymers Limited successfully ventured in the field of manufacturing and exporting of all types of PET bottles, containers, jars etc. using advanced Injection Stretch Blow moulding(ISBM)technology in 1984.

From one machine in 1984, the company has grown to over 40 machines in three locations with new locations under construction. All their units are ISO 9001 certified and are undergoing HACCP (Hazardous Analysis and Critical Control Points)certification.

The worldwide preference of PET resin in manufacturing containers has opened a plethora of packaging options for almost all industries like pharmaceuticals, beverages, confectionery, personal care, liquor etc. The Company works with customers in these industries to create functional, attractive and cost-effective packaging to meet their needs.

FINANCIALS

The company has a equity capital of 16.24 Crores made up of 1.62 Crore equity shares of Rs.10.00 each. Promoter group is holding about 60 percent of shares. Institutions like LIC and other high net worth individuals etc. hold about 16 percent shares, thus making a total of 76 percent. Remaining 24 percent is held with the public viz. about 40 Lakh shares.

The company is making fairly good profits and is expected the close the year end 2007-08 with an estimated profit 2.2 Crores with an eps of about 1.3. Our projections of eps are 1.8 by 2009, 2.6 by 2010. Thus, with a conservative PE ratio of 18 on forward earnings, we expect price level of 33 by April 2008 and 45 by April 2009. The present share price is about 24 – 25. Investors with a long term horizon can consider investing in Pearl Polymers Ltd.

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