Buy Sintex Industries with a target of 145

Sintex industries was incorporated as The Bharat Vijay Mills Limited in June 1931 and same year it started composite textile mill in kalol, Gujarat.

Sintex Industries is the world largest producer of plastic water tank. 

It is also Asia's largest manufacturer of corduroy fabrics.

Sintex has a strong presence in the European, American, African, and Asian markets.

It is primarily in manufacturing textiles & plastic products. 

Its manufacturing includes a wide range of plastic products including prefabricated structures, industrial custom moulding products, monolithic constructions and water storage tanks. 

In the textile segment, the company focuses on niche segment specializing in men's shirting.

Motilal Oswald has recommended a buy rating for sintex industries with a target of 145 for the following reasons:

Domestic segments drive growth.

B2G recovery and clarity on spinning performance.

growth revives amidst stable margins.

Sales of Sintex Industries is expected to increase from 7000 crore in 2016 to 9700 crore in 2018.

EBITDA margin is expected to increase from 1200 crore to 1700 crore.

PAT is expected to increase to 770 crore in 2018 from current level of 550 crore in 2016.

EPS is expected to increase from 13 in 2016 to 17.2 in 2018.

ROCE is expected to improve from 12% to 13.3%.

At current price level of 82, the stock is trading at 6.3x and future 2018 PE of 4.76x.

According to motilal oswal, it would a great opportunity to enter in this stock with a price target of 145 at 9PE 2018 earning.

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