Tinplate rising gem from Tata group..
Tinplate Company is small rising star from Tata group.
It’s key product Tinplate is directly linked with Mfg & packing Industry. It’s used to package, batteries, Paints, Pesticides, Carbonate beverages, Food processing. As my Indians are dispersed across the Globe & are great food lovers.
I see evergreen demand for Tinplates in Food processing Industries.(Halidram’s Rasogola) &Gulab Jamun is available across India thanks to packaging Industry.
Why one should consider Investing.
Tinplate Company of India Limited (TCIL) has decided to raise funds more than Rs 200 crore through a rights issue to part finance it's ongoing expansion plans to raise capacity from 1,80,000 to 3,80,000 tonnes per annum. As part of the overall financing and capitalization programme, the company will go in for a rights issue of equity shares to the shareholders for an amount of around Rs 200 crore.
Second Reason is String Sales in Mar'08 & Mar'09. Sales for most Non ferrous Metal companies depicted a downward trend in Last 2 years, suprisingly it was not the case for Tinplate.
Drawbacks:
High Debt in the Books.
All depends on Expansion plans that will be announced in 31-Aug-09.
If company goes for Right Issues it's positive development.
For this reason Investors with minimum 1year view only should buy.
Short term guys please stay away.
I have been buying this in small quantities as Pension plan as I believe in the Tata Group Management & P/e valuation is attractive. If all goes well with expansion program this Stock can fetch return of 30% to 50%.
For all Investors investing in this firm key close eye on Qauterly figures.
Disclaimer: Life gives just one chance so make best out of it.
Buy in Installments as Markets always give a second chance.
It’s key product Tinplate is directly linked with Mfg & packing Industry. It’s used to package, batteries, Paints, Pesticides, Carbonate beverages, Food processing. As my Indians are dispersed across the Globe & are great food lovers.
I see evergreen demand for Tinplates in Food processing Industries.(Halidram’s Rasogola) &Gulab Jamun is available across India thanks to packaging Industry.
Why one should consider Investing.
Tinplate Company of India Limited (TCIL) has decided to raise funds more than Rs 200 crore through a rights issue to part finance it's ongoing expansion plans to raise capacity from 1,80,000 to 3,80,000 tonnes per annum. As part of the overall financing and capitalization programme, the company will go in for a rights issue of equity shares to the shareholders for an amount of around Rs 200 crore.
Second Reason is String Sales in Mar'08 & Mar'09. Sales for most Non ferrous Metal companies depicted a downward trend in Last 2 years, suprisingly it was not the case for Tinplate.
Drawbacks:
High Debt in the Books.
All depends on Expansion plans that will be announced in 31-Aug-09.
If company goes for Right Issues it's positive development.
For this reason Investors with minimum 1year view only should buy.
Short term guys please stay away.
I have been buying this in small quantities as Pension plan as I believe in the Tata Group Management & P/e valuation is attractive. If all goes well with expansion program this Stock can fetch return of 30% to 50%.
For all Investors investing in this firm key close eye on Qauterly figures.
Disclaimer: Life gives just one chance so make best out of it.
Buy in Installments as Markets always give a second chance.
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