Sintex Plastic Ltd

(suhagpatel) #42

2.9mn FCCB converted to equity. Now the outstanding FCCBs should be around $25-26mn.


(kanvgarg123) #43

Net - Net we will end up with 60.5 Crore shares after all the conversions. At CMP the market cap after conversion would be 5050cr. It is better to look at this way. Debt is a big overhang. They will start capex cycle again after 2 years and that would again increase their debt if their profits don’t grow.


(kanvgarg123) #44

@Dhruva and @Hocuspocus32 If you guys are still invested in Sintex Plastics you can go through the recent presentation which are going to give to Citi.

If you go to the future growth slide, they have mentioned that they want EBIDTA to be 18% (take lower case) then, they want to reduce debt/EBIDTA to 2-2.5.
At current sales and assuming 10% growth for next 2 years (in conf call they said it will be 15-20% for FY 19 and Fy 20) they will end FY20 with 7300 odd cr sales. At 18% EBIDTA, they will have net EBIDTA of 1324 odd crores which implies 2.5*1324 = 3285 cr = Debt (which is current debt). In the conf call they said that they want to reduce 400 odd crores of debt every year.
Also, they said that Capex Intensity would be 6.5% of sales which means that at 7300 odd crore sales they will do Capex of 400 odd crores but as per management they will jut do 200 odd crore of maintenance capex every year.
I am unable to understand why there is such difference in the numbers.
Can you help me out?


(suhagpatel) #45

Promoters have created pledge.

Requesting knowledgable VPers to help in understanding total pledge % against total equity.


(mahabali3004) #46

More FCCB to equity conversion. Another 4.3 million , so 21-22 mn more.

And with promoters pledging stock, I guess Sintex Plastics will go down further !!

(kanvgarg123) #47

After full dilution, the share capital will go to 60.4 odd crores. Value it based on those numbers. some 2 crore share are yet to converted :).


(csteja) #48

Are there any growth plans for SPTL currently?

(kanvgarg123) #49

10% or so consolidated for FY19 and 20% or FY20 but it is better to assume 10%. One can’t predict where the majority biz is driven by government spending.

(mahabali3004) #50

Given that fiscal deficit has widened a lot… Govt may halt spending to meet fiscal target. So maybe Govt spending may pick pace after 2018 budget, in the run up to 2019 elections. So SPTL may have to wait

(us121) #51

Govt dependent business is largely one division of prefab pannels. This business they are reducing intentionally for last few years. As per last earning call, inspite of opportunities they do not want to expand this B to G business as a prudent decision due to debt, working capital and such other related issues. They are taking very selective orders which gives quality returns.

([email protected]) #52

Does Sintex custom moulding business get benefit from the EV-Plastic play
any thoughts from all who are following Sintex Plastics closely.

Disclaimer - Tracking position

(Agarwala) #53

Hi Rao
According to industry reports (read here), unlike upstream plastic manufacturers (PVC, ABS, PP etc.),
there are over ~30,000 plastic processing units in India that are mostly operated by
small players. Sintex plastic is obviously one of these plastic processers. Any advantage has to get diluted as it is shared by a large number.

(Savishesh) #54

I think you should read more about their custom moulding business before forming an opinion.

(us121) #55

I do agree. Going through their AR will give reasonably good visibility of what is being discussed.

(Agarwala) #56

Hi Savishesh
I am always ready to change my mind and admit my follies. Please educate me why Sintex Plastic is not one of the many? It may be a better player than its peers, however plastic processing is an industry with low entry barriers. The operational efficiency counts. The size of operations also counts. These may be positive for Sintex, but Nilkamal has done vastly better. And there are thousands of plastic moulders who must be languishing in anonymity. Why do you think that Sintex is different? What is the mote? This forum and I will be personally benefited, if you will give the details. It may be a folly, but I personally feel that Sintex plastic is not for long term investment.

(Savishesh) #57

Custom molding specially in automobiles, defence, aerospace requires that the manufacturer works with the customer closely and gets its product approved - tailormade to customer needs. This takes 2-4 years and requires working jointly with the customer. This in itself is a moat since its difficult for the customer to find an alternative supplier whose product can exactly match his requirement, Hence this is niche and has higher margins and customer stickiness. Adding new customers is not easy and takes time but recently, sintex has added some new automobile manufacturers.Their European Subsidiary is well known for custom molding and management plans to bring superior technology from european subsidiary to Indian parent.

Sintex retail products can be compared to other plastic moulders but sintex brand has 70% market share and with GST this seems to only increase (unorganised to organised play).

I suggest go through their audio concalls for last 2-3 years, presentations, research reports, annual report and connect the dots. The Management are not good in clearly communicating their thought process and hence the investor community is left guessing their intentions.

(suhagpatel) #58

Can you name the new automobile manufactures added by Sintex Plastic recently? Are they added after demerger with Sintex industries?

IMHO this unorganized to organized is completely overrated my market. Small players are smart enough to come into mainstream and they know all the “jugaad” on how to tap into the changing scenarios.


(Savishesh) #59

Kindly take the pains of going through their presentations, concalls, research reports and AR. This forum is not a substitute for doing background study.

(kums17) #60

A good analysis on the stock at the link

(saumilshah) #61

Its difficult to understand this company…Already too much of debt and they are taking all necessary steps to reduce the debt but again on 6th dec outcome of board meeting we see they are planning to raise capital upto 1800 crores? what does this mean? will there be increase in debt?
senior members please guide on this.