Quoting Ayush from dalal-street.in:
Acrysil (M.Cap 53 Cr):**Acrysil is theaonly company in all of Asia a and one of just a few companies worldwide a manufacturing quartz kitchen sinks.a The company posted a goodJune quarter. The management talks about big ambitions in theannual report. If they actually end up delivering what they are aiming for, this stock can give fantastic returns.
The co is a very small player in global markets and has been gaining market share slowly. The co has started getting very good growth in domestic markets - the growth is about 40% for last 2 years (though the base is small)
As per the annual report of the co, the size of global granite sink industry is estimated to be around 10 mln nos per annum.
Last year co sold about 1.8 lac sinks.
We further did some ground work by speaking to architects and builders and they do seem to know the brand name Carysil.
Beyond the statement, we wanted to highlight (and encourage discussion) about the aggressiveness of this small cap company of around 50 Cr. which has been growing well and has some ambitious plans.
- The company tone has been super aggressive in most of it’s annual reports, even when it failed to deliver. eg: 2011-12, had very bad margins, but the company din’t care to explain.
- Recent allotment of 2Cr worth of equity to the promoters is a concern.
- Most of the sales are coming from exports. The company explains its drop in sales as due to currency appreciation. So the recent growth may be due to currency depreciation.
Able to generate good cash flows to pay dividends. If the company captures it’s place as a TTKPrestigeor Asian Paints, by taking over the premium segment, the free cash flows would be plentiful and might be able to command PEs of 25+ (10 years down the line).