Bright Brothers Ltd. - Manufacturer of Dies and Plastic Components

Bright is one of the renowned molds, dies and components manufacturing company, offering to industry such as manufacturer of Consumer Durable and Plastic Automotive Components which are used in various household items and commercial purposes.

The company deal in a vast range of Plastic Molding and Consumer Durable Products as per the demand of home and industrial needs.

The company started its operation as a plastic molded manufacturing unit in the country. Today, Brite is one of the most reputed names amongst plastic molding products manufacturer in India.

The company use precision moulding techniques for manufacturing process and continuously upgraded through the practice of Kaizen thereby reiterating the good commitment in the market.

The products and services offered are :

Consumer Durables Parts & System

Crates, Bins and Containers

Hair Care Products

Tooth Brush Handles

Tool and Die Making

Painting

Automotive Parts & System

Pallets

The Company main focus is to deliver high quality products that meet to international norms and standards.

Brite went on to become the preferred supply partner of all leading automotive and non automotive OEMs in India, with 6 plants across India. These have after a divestment and re structuring exercise, been brought down to 5 plants in Pondicherry (2 plants), Faridabad, Dehradun and Bhimtal (Uttarakhand).

Company derives 95% of its income from Moulds, consumer durable and components, and rest from imported beauty and grooming products sold under its own brand name.

Company’s client list consist of Whirlpool, Eureka Forbes, Carrier, USHA, P&G, IKEA, TVS, Bright Autoplast, Onida, Midea, etc.

Company is now receiving enquiries from global players who wants to reduce their dependency on China, with government supporting manufacturing sector through PLI scheme, the future remains bright for the company.

In the last couple of quarter, company turn around its operation and posted good result, which can be seen from last 2 quarter numbers, where company posted sales and profit of 136 crores and 5.8 crores.

The company recently sold its vacant land located at Hariyali Village, near Vikharoli Mumbai at 43.7 crores, which will enable company to become debt free, as company has high interest debt and bill discounting facility to the tune of 17 crores, for which company is paying close to 4.2 crore interest per annum, this will get directly added to bottom line, which will boost EPS by 8 rupees per share, beside good growth in the business, where company reported highest ever quarterly profit in March 2021 quarter, the momentum will continue for next few years, as there is good demand in auto industry and consumer durable due to WFH and cheap and easy finance provided.

For FY22 the company is likely to post sales of over 320 crores and Net Profit of 20 to 22 crores, giving an EPS of Rs 35 per share.

At CMP of 175, the shares are traded at just 5 x FY22 earnings and at current market cap of Rs 100 crore, the shares are traded at Market cap to sales of just 0.3 times.

Company has done good capex over the last couple of years and has cash balance and investment of Rs 6 crores as on March 2021. Plus company is likely to have 20 crores surplus after paying of the debt and taxes on sale of land, which company may pay out as dividend, which may come as 35 to 40 rs per share.

Listed peers like Dixon, Amber, Hind Foods are trading at PE of 70+, while BBL available at FY2022 PE of just 5.

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any reason why debt days increased to 151 from 77 days?