Value Buy-TINPLATE Rs.76 http://www.tatatinplate.com/ (TATA Group) FV-10 Book Value 42.9 12TTM EPS-7.78
TINPLATE is largest indigenous producer of tin coated and tin free steel sheets in India, enjoying 35-40% market share. The company exports about 20-25% of its production directly to end-users (can-makers) and its products are well accepted in the markets of SE Asia, Middle East and some developed countries in Europe. Company is in business of packing (Cans corrosion free) used for packaging foodstuffs and beverages, but it is also used in containers for oils, grease, paints, powdered, polishes, waxes, chemicals and many other products. Aerosol containers and caps and closures are also made from tinplate.
When Indian market rally is on Indian Consumption story this 85yr old company supplying Cans to major food and beverages company is attractively priced for a rally. In a developing country like India, use of tin plate in packaged foods is still at a nascent stage. The per capita tin consumption in India is only 0.3 kg compared to 1 kg in China and 8-12 kg in developed nations. Tinplate, being the market leader, is likely to benefit from the rising demand for packaged foods from urban population and increasing use of tin plates in packaged foods.
Weekly Graph shows a Major Break-Out and Rs.70 is Major support all time high Rs.96
