Wim plast

Wim Plast Limited – may turn out to be a multibagger!

Wim Plast Limited is one company which has a nicemix of good things - low marketcap, increasing sales, increasing profits, strongbrand, high promoter stake, consumption theme, good dividends backed by goodmanagement – what else on earth you want for a stock to become a multibagger?

The products of Wim PlastLimited is as under:

1) Plastic Moulded Furnitures - like Tables,Chairs, Storewells in various ranges

2) Cello Bubble Guard Sheets - used forConstruction and Packaging activities

Wim Plast Limitedhas its HO at Mumbai, 2 plants in Daman, one in Chennai and one in Baddi inHimachal Pradesh.

Wim Plast has veryrecently set up a fusion of technology plant at Baddi imported from Italy –this state-of-the-art plant is first in Asia and third in the world.

While the companyfaces stiff competition from Supreme Industries and Nilkamal when it comes tomoulded furniture, Wim Plast however has the distinction of being a monopolyplayer manufactures wall panels (Cello bubble guard board

These wall andfalse ceiling panels are manufactured by Wim Plast and marketed by VistaPlastech across the country. false ceilings (Cello bubble guard ceilings). “These panels,made from 100 per cent virgin poly propylene, are ideal for use in offices,hospitals, hotels, warehouses, malls, homes and industries. Cello bubble guardwall panels have various advantages over other materials like gypsum board asthese are water-proof, termite-proof, fire resistant, economical,maintenance-free and easy to install.”

Wim Plast has been experiencing all round expansion in termsof revenues, profits, EPS over the last four fiscals as under :

Total revenues -Rs.70crs+ to Rs. 90 crs+ to Rs.130 crs+ Rs.150 crs + FY08 throughFY2011

PAT - Rs. 3 crs+ to Rs.8crs+ to Rs. 17 crs+ Rs.18 crs+ in bottomline from FY08 to FY 2011

EPS – Rs.5.09, Rs.13.33,Rs.28.35, Rs.30.31 from FY08 throughFY2011

And here’s the valuation which appears to be robust enoughfor the stock to become a multibagger:

CMP Rs.180.8

Marketcap mcap to sales ratio : 0.6

PE 5.89 X

Return on Equity 23.94 per cent

Price/Book Value 1.23 X

5Year topline CARG 24.11 per cent

5Year bottom line CARG 61.52 per cent

This zero debt company with RoE of 24 per cent is trading at aPE of 5.8x ‘

And I’ll add :the promotor’s confidence in the company is reflected by the 72.96 per centstake they own in Wim Plast while the Institutions own a beggarly 0.02 per centonly. What about you? And yes, the company paid a dividend of Rs.4.5 /share forFY2010-11.

May all thestocks you own become multibaggers!

Happy Investing and Good Luck.