PC - Sintex Plastics Initiation - Dec 2017 20171219185011

INSTITUTIONAL EQUITY RESEARCH
Sintex Plastics Technology (SINTEX IN)
Uncertainty priced‐in

19 December 2017
INDIA | MIDCAP | Initiating Coverage
Sintex Industries demerged its custom moulding and prefab businesses into Sintex Plastics BUY
Technology Ltd – as wholly owned subsidiaries. This strategic move is positive for the CMP RS 78
growth of these individual businesses that have different characteristics. We believe the
TARGET RS 145 (+85%)
demerger will lead to a rerating because of: (1) superior focus on businesses, (2) better

free cash‐flow generation, and (3) improved return ratios. We initiate coverage on Sintex
COMPANY DATA
Plastics with a BUY rating. O/S SHARES (MN) : 590
MARKET CAP (RSBN) : 46
Custom moulding: Stable and sustainable growth MARKET CAP (USDBN) : 0.7
Custom molding (CM) provides 66% of Sintex Plastic’s revenue (60% overseas, 40% India) 52 ‐ WK HI/LO (RS) : 137 / 67
LIQUIDITY 3M (USDMN) : 1.9
while 34% comes from building material, including pre‐fabricated plastics and monolithic.
PAR VALUE (RS) : 10
CM mainly caters to auto, electrical, aerospace, and defense sectors. Overseas business has
expanded through acquisitions, giving Sintex Plastics access to both technology and global SHARE HOLDING PATTERN, %
clients. Sintex Plastics has successfully transferred overseas technology to India, which is Sep 17
evolving and growing at faster rate of ~15% CAGR compared to global growth of 8‐10%. PROMOTERS : 29.4
Domestic CM is benefiting from growth in the automobile, electrical, and defense segments, FII / NRI : 24.0
FI / MF : 5.4
along with an upcoming capacity expansion. Carmakers and two‐wheeler companies in India NON PRO : 7.5
have lined up investments of about US$ 5bn (Rs 310bn) and Rs 85bn respectively, over the PUBLIC & OTHERS : 33.7
next five years – which provides a long‐term growth trajectory for the business.
PRICE PERFORMANCE, %
Retail to provide higher growth because of GST 1MTH 3MTH 1YR
ABS ‐1.0 ‐23.1 na
Sintex Plastics is a market leader in storage tanks in India (60% market share) and has built a REL TO BSE ‐2.5 ‐27.5 na
strong product portfolio in plastic (3,500+ products, eight technologies) over 30 years. The
company has expanded its product portfolio in retail with doors, insulated boxes, bio‐gas PRICE VS. SENSEX
plants, composite sandwich panels, and waste‐management products. We expect its retail 110
segment to see a CAGR of 20% over FY18‐20, based on its pan‐India network and emerging
100
demand from cold‐chain investments for sandwich panels.
90
Strong execution capability in prefab 80
Sintex Plastics’ prefab business is driven by spending on healthcare, education, and 70
sanitation. It builds schools, healthcare centres, and enclosure for RO water purifiers out of 60
prefabs. It is a pan‐India player in prefabs with five plants across India. In this segment, it
50
reported a revenue CAGR of 22% over FY10‐16 to Rs 18.5bn, with EBITDA margins of 18‐ Aug‐17 Sep‐17 Oct‐17 Nov‐17
26%. Its FY17 and 1HFY18 performance in prefab was dented by demonetisation and GST Sintex Plastic BSE Sensex
implementation. Increased outlay towards addressing drinking water and sanitation issues is
Source: Phillip Capital India Research
creating demand for prefab products. A large outlay from the corporate kitty is available to

boost the government’s campaign and Rs 70‐80bn per annum is likely to be spent through KEY FINANCIALS
CSR for education, healthcare, sanitation, and environmental products. Rs mn FY17 FY18E FY19E
Net Sales 59,947 59,967 67,573
Improvement in financials EBIDTA 10,132 8,972 10,413
We expect FY17‐20 revenue CAGR at 9% because of a muted FY18, and controlled growth in Net Profit 4,196 3,323 4,495
monolithic and infra. Custom moulding should grow at 11% CAGR over FY17‐20 (14% India EPS, Rs 7.0 5.5 7.5
business, 10% overseas business). We estimate EBITDA and profit CAGR at 6% and 10% and PER, x 11.2 14.1 10.4
EV/EBIDTA, x 7.7 9.0 7.2
asset turnover to increase to 1.1x in FY20 from 0.9x in FY17, resulting in ROCE improvement
P/BV, x 1.5 1.4 1.2
of about 200bps to touch 14% by FY20. Sintex Plastics should generate a cash profit of Rs
ROE, % 13.5 9.8 12.0
21.5bn over FY18‐20, which will help to deleverage its balance sheet bringing its D/E to 0.8x Debt/Equity (%) 119 104 78
in FY20 from 1.2x in FY17. Source: PhillipCapital India Research Est.

Outlook and valuation: At CMP, Sintex Plastics is trading at 8x our FY20 earnings and 5.9x Vikram Suryavanshi (+ 9122 6246 4111)
EV/EBITDA. We expect a rerating in its valuation, considering its leadership in plastics and vsuryavanshi@phillipcapital.in

custom‐moulding and its sharper focus after the demerger. We have valued the company at
15x our FY20 EPS to arrive at a price target of Rs 145.
Page | 1 | PHILLIPCAPITAL INDIA RESEARCH

SINTEX PLASTIC TECHNOLOGY INITIATING COVERAGE
Custom moulding: Stable and sustainable growth
Custom moulding involves manufacturing of composite materials (plastics + metal) by
processes such as compression, injection machining, and wire forming. Sintex Plastics Sintex is among the top‐20 global
works with all thermoplastic grades PE (Polyethylene) to PEEK# (Polyether ether companies in custom moulding products
ketone), composite grades used in aeronautics (with precision cutting of ferrous and and solutions for plastics and composite
non‐ferrous metals), wire forming with steel, stainless steel using SMD ( surface‐ materials
mount device) or through‐hole mounting (TH) technology, and wiring harnesses. It
has developed expertise in a wide range of plastic technologies such as injection
moulding, gas assist injection moulding, blow moulding, vacuum forming, PU
foaming, vibration welding, ultra‐sonic welding, three‐coat PU painting. Composites
are resistant to high temperatures – they offer a high strength‐to‐weight ratio,
increase fuel efficiency, and provide enhanced structural stability.

In custom molding, Sintex Plastics derives 60% revenue from its overseas markets
and 40% from India. This is a long‐term and sticky business, in which the company
works with customers (like car or equipment manufactures) almost two years before
production – right from designing to prototype. The company’s focus is on
composites material and it continues to expand its product range and the sectors that
it caters to with new technologies and processes. It has access to global technologies
through acquisitions.

Sintex Plastics’ domestic business is focused mainly on automotive, electrical, and CM business is OEM driven and Catering
defence sectors. It has a strong portfolio of OEMs such as Maruti Suzuki, Hyundai for Fortune 500 OEM’s both in India as
Motors, TATA Motors, Mahindra & Mahindra, Mahindra Navistar, General Motors, well as abroad. It works with vendor
Force Motors, Honda Scooters, and TVS Motors. Domestic custom moulding will start from product design.
benefit from strong growth in the automobile segment along with upcoming capacity
expansion. Carmakers and two‐wheeler companies in India have lined up investments Diversifies and balanced business mix
of ~US$ 5bn (Rs 310bn) and Rs 85bn respectively over the next five years, providing with no large dependence on any
customer or technology or division.
long‐term growth prospects for Sintex Plastics’ CM business. New technologies and
pollution norms will drive further growth in cars and commercial vehicles, and
demand from other emerging sectors such as medical imaging, defence, electrical,
and marine sector will also increase.

Overseas business has expanded through acquisitions, giving Sintex Plastics access to It has created a global footprint across
both technology and global clients. Its overseas business group operates in France, USA and Europe through strategic
Germany, Eastern Europe (Poland, Hungary and Slovakia), USA and North Africa acquisitions
(Tunisia and Morocco). It works with industries in a wide range of areas including
automotive, electrical & electro‐mechanical equipment, aeronautics and defence,
household appliances, medical, construction, and sports and leisure. It has a strong
base of 15 manufacturing plants: 9 in France and one each in Hungary, Slovakia,
Germany, Poland, Tunisia, and Morocco. It has strong relationship with large
international companies such as Schneider Electric, Legrand, ABB, Alstom, Valeo,
Airbus, Safran, Stelia, and Faurecia which also help to expand business in India.

Company Country Cost Date
Zeppelin Mobiles India Rs 190mn May‐06
# Note: Polyether ether ketone (PEEK) is
Wasaukee Compo USA US$ 20.5mn May‐07
a high‐performance engineered polymer
Bright Brothers (Auto division) India Rs 1470mn Sep‐07
with excellent heat tolerance and one of
Nief Plastics Europe‐ France Euro 43mn Oct‐07
the highest strength‐to‐weight ratios of
Nero Plastics USA US$ 4.77mn Dec‐07
any thermoplastic. This material can be
Digvijay Communication & Network India Rs 540mn May‐08
used as an alternative to other
Poshmann Holdings (CM Overseas) Germany & Poland Rs 1500mn Mar‐13
materials such as aluminum, steel,
Groupe Somonin France Euro 21mn Aug‐14
glass, and other polymers.
Source: Company, PhillipCapital India Research


Retail to provide higher growth with GST
Sintex is a pioneer in water storage solutions since 1975 with a varied portfolio of
products and market leadership with more than 60% share across India. Currently,
major brands in water storage solutions in India include Sintex, Reno, Renotuf, and Sintex has a strong distribution model
Titus. Sintex is expanding its portfolio with its new range of “Euroline” dustbins and across India and implementation of GST
containers and affordable, quick‐to‐construct and low maintenance plastic products will reduce competition from
such as false ceilings, doors, and cabinets aimed at low‐cost, mass‐housing solutions. unorganized small players.
Other products in the retail segment include sandwich panels, biogas chambers,
water‐treatment equipments, and material‐handling products for pharma, textiles,
and other industries. We expect Sintex Plastics’ retail segment to report 20% CAGR to
Rs 1.4bn over FY18‐20. (See annexure for product details)

Strong execution capability in prefab
Sintex started its prefabricated business in 2000 and monolithic business in 2007. It
has emerged as one of the leading companies for prefab and monolithic construction
in India. Its prefabricated structures are completely knocked‐down kits that can be
assembled at the site by trained professionals, thereby minimising wastage and
improving their cost effectiveness. These structures are now a preferred solution for
strengthening social infrastructure. Monolithic construction offers various benefits
such as time and cost saving, strength, and eco‐friendliness as compared to
traditional techniques. Sintex is the first company in India to receive an ISO
9001:2000 standard for prefab structures.

The prefab business is driven by spending on healthcare, education, and sanitation.
Sintex Plastics builds schools, healthcare centres, and enclosures for RO water
purifiers out of prefabs. Private‐sector CSR initiatives will also drive its revenue.
Increased outlay towards addressing drinking water and sanitation issues is creating
demand for prefab products. A large outlay from the corporate kitty is available to
boost the government’s campaign and Rs 70‐80bn per annum is likely to be spent
through CSR initiatives for education, healthcare, sanitation, and environmental
products.

Freight‐economics logistics require prefabricated product assembly units to be
located within a close radius of the site of installation in order to be economically
viable. The company has five plants covering 80% of geography for execution. Sintex
Plastics’ geographical spread of manufacturing locations ensures faster delivery of
turnkey solutions. It has developed project management and expertise over time,
which helps its business.

Strong demand drivers
According to a paper released by the Ministry of State for Chemicals and Fertilisers,
the Indian plastics‐processing industry will grow at 10% CAGR and is valued currently
at Rs 1.37tn. Growth will come from acceleration in end‐user industries, and greater
penetration of plastics in the existing and ever‐growing range. The Indian plastic
industry has set a ‘20‐20‐20’ vision. According to this, plastic processing in India could
reach 20mt by 2020 from current 12mt.

The government’s “Swacch Bharat Mission” aims to address open defecation, and
disposal of solid and liquid waste through recycling. As per a circular of the Ministry
of Urban Development and Drinking Water and Sanitation, it would cover 10.4mn
households, provide 0.25mn seats of community toilets and 0.26mn public toilets,
and solid waste management for 4,041 statutory towns. The total cost of the
programme over five years is estimated at Rs 620bn with the central outlay
earmarked at Rs 146bn. Apart from this, the private sector is rising to the social cause
in a big way through CSR initiatives to address drinking water and sanitation issues.


There is a strong unmet demand in India for affordable housing. India needs 7mn
houses every year, almost 75% of which constitute affordable housing. The
qualification with the governments is the primary entry barrier for monolithic
construction and prefabs. However, Sintex Plastics is pre‐qualified with 17 state
governments for its prefabs and monolithic construction panels.

Reducing exposure to high working capital business
Sintex Plastics has reduced its exposure to the monolithic and infra business since
2011 – as of FY17 it was ~Rs 5bn (or 20% of building products revenue) from Rs 13bn
(60% of building products revenue). Monolithic is focused on low‐cost housing
business projects and depends on state government investments and policies.
Though outlook for business is good, it has high working capital requirement (~120
days). The company has moved to asset light business with controlled exposure in
monolithic.
Improvement in financials
We expect revenue CAGR of 9% over FY17‐20 because of a muted FY18 and
controlled business in monolithic and infra. Custom moulding will grow at 11% CAGR
(14% India, 10% overseas). EBITDA and profit CAGR should be 6% and 10% for FY17‐
20. Asset turnover will increase to 1.1x in FY20 from 0.9x in FY17, resulting in ROCE
improvement of 200bps to 14% by FY20. Sintex Plastics should generate cash profit of
Rs 21.5bn over FY18‐20, which would deleverage its balance sheet bringing down the
D/E ratio to 0.8x in FY19 from 1.2x in FY17.

Revenue growth driven by custom moulding and retail Margin to recover after the impact of demonetisation/GST
Revenue (Rs) YoY Growth ‐ RHS EBITDA Margins (%) ‐ RHS
90000 20 14000 17.5
80000 15 17.0
12000
70000 10 16.5
10000
60000
5 16.0
50000 8000
0 15.5
40000 6000
‐5 15.0
30000
4000
‐10 14.5
20000
2000 14.0
10000 ‐15
0 ‐20 0 13.5
FY17 FY18E FY19E FY20E FY17 FY18E FY19E FY20E



Return ratio trend De‐leveraging of balance sheet with free cash flow
16.0 RoCE (pre tax) RoE 35000 Net Debt D/E (RHS) 1.4
14.0 30000 1.2
12.0 25000 1.0

10.0
20000 0.8
8.0
15000 0.6
6.0
10000 0.4
4.0
2.0 5000 0.2
‐ 0 0.0
FY17 FY18E FY19E FY20E FY17 FY18E FY19E FY20E


Outlook and valuation
Pre de‐merger, Sintex industries valuations were impacted due to economic cycles,
stretched working capital, and higher leverage. De‐leverage has created focused
entity with value added products with strong balance sheet. The company is free cash
positive and expected to generate free cash of ~Rs 4‐5bn per annum post capex and
working capital requirements. The company is in a strong position to capitalize on
economic recovery and growth in retail, warehousing and cold chain post GST.
Improvement in working capital management, its well‐established distribution
network with strong brand name and integration of its overseas subsidiaries will
support valuation rerating.

The company had FCCB of USD 110mn issued pre demerger (May 2016) to finance
textile expansion. The FCCB holders are entitled to get shares of Sintex plastic as per
de‐merger agreement and ~USD 20mn FCCB are outstanding, representation 2% of
post diluted equity of 604mn shares. We have factored equity dilution in our
estimates.

At CMP, Sintex Plastics is trading at 8x our FY20 earnings and 5.9x EV/EBITDA. We
expect a rerating in its valuation, considering its leadership in plastics and custom‐
moulding and its sharper focus after the demerger. We have valued the company at
15x our FY20 EPS to arrive at a price target of Rs 145.


Business risks
• The company report earnings in Indian rupee while ~35% of consolidated
revenue in FY17 was earned in foreign currency mainly in Euro and USD. Foreign
currency fluctuations could affect the financials.

• Prefabricated structures and monolithic construction business are capital
intensive and are significantly depend on policies of various state govern and
demand from low cost public housing , construction of social infrastructure and
urban redevelopment.

• Raw material cost is the largest component of operating cost with 56% share of
operating cost in FY17. The major raw material are LLDPE, HDPE, cement and
PVC and mostly buy from spot market and financials are vulnerable to volatility
in raw material prices. Oil based raw material such as PVC, LLDPE and HDP and
plastic resins and granules constitute ~18% of expenses.

• Increase in Interest cost would impact the negatively due to high debt and
working capital need. The company is planning to refinance debt in custom
molding business (~Rs 18bn) at lower interest cost by ~200bps with longer
tenure.


SINTEX PLASSTIC TECHNOLO
OGY INITIATIN
NG COVERAGE
Annexure 1: Dem merger detaills
ntex Industriess announced the demerge
Sin er of its custo m moulding b business and the
preefab businesss form itself into Sintex– –BAPL Ltd annd Sintex Inffra Projects Ltd,
resspectively, un
nder the com
mpany Sintex Plastics Techhnology Ltd, a wholly‐owned
subbsidiary. The demerger iss effective 12th
1 May 20017 and liste ed on the sttock
excchanges on 8tth August 2017.

Bassed on FY16 FFinancials

AFTER THE DEM
A MERGER
Issue of 1:1 equity of SSintex Plastics
SINTEX PLASTICS
S
SINTEX IND LLTD
R
Revenue: Rs 9.4 44bn
TECNO OLOGY LTD
Revenue e: Rs 67.9bn
EBITDA Rs 2.17 7bn
EBITDA Rs 11.25bn
100% 100%
PRE‐DEMERG GER

SINTEX IND
S LLTD Sintex
x‐Infra
Sinteex‐BAPL Ltd
Revenue: Rs 77.
R .35bn Projeccts Ltd
Rev Rs 34.40bn
EBITDA Rs 13.442bn Rev Rs 333.51bn
EBITDDA Rs 4.98bn
EBITDA RRs 6.27bn

Textile, Spinninng Custoom mounding Prefab, M
Monolithic,
business bbusiness Infra, Plastiics business

Annexure 2: Gloobal Presence
e
e group has 336 manufacturing facilities and global foootprints acro
The oss nine counttries and fourr continents
Source: Company
Pagge | 7 | PHILLIP
PCAPITAL INDIA
A RESEARCH

OGY INITIATIN
NG COVERAGE
oduct Profile
Annexure 3: Pro
Cusstom Moldingg – Overseas ((Europe)

Cusstom Mouldin
ng – Overseass (USA)

Cusstom Moldingg ‐ Domestic

Source: Company
Pagge | 8 | PHILLIP
PCAPITAL INDIA
A RESEARCH

OGY INITIATIN
NG COVERAGE
Cusstom Moldingg‐ Retail

efab and Infraa division
Pre

Source: Company

Pagge | 9 | PHILLIP
PCAPITAL INDIA
A RESEARCH

Financials

Income Statement Cash Flow
Y/E Mar, Rs mn FY17 FY18e FY19e FY20e Y/E Mar, Rs mn FY17 FY18e FY19e FY20e
Net sales 59,947 59,967 67,573 77,351 Pre‐tax profit 5,546 4,003 5,994 7,883
Growth, % 0 13 14 Depreciation 2,303 2,367 2,487 2,637
Total income 59,947 59,967 67,573 77,351 Chg in working capital ‐2,224 ‐1,311 ‐604 ‐541
Raw material expenses ‐32,243 ‐33,582 ‐36,490 ‐41,770 Total tax paid ‐217 ‐480 ‐1,199 ‐1,577
Employee expenses ‐7,406 ‐7,702 ‐8,318 ‐9,150 Cash flow from operating activities 5,409 4,579 6,679 8,403
Other Operating expenses ‐10,166 ‐9,712 ‐12,352 ‐14,411 Capital expenditure ‐61,446 ‐2,509 ‐2,100 ‐3,300
EBITDA (Core) 10,132 8,972 10,413 12,020 Chg in investments ‐6,312 0 1,720 802
Growth, % (11.4) 16.1 15.4 Cash flow from investing activities ‐67,758 ‐2,509 ‐380 ‐2,498
Margin, % 16.9 15.0 15.4 15.5 Free cash flow ‐62,350 2,070 6,298 5,905
Depreciation ‐2,303 ‐2,367 ‐2,487 ‐2,637 Equity raised/(repaid) 555 45 0 0
EBIT 7,829 6,605 7,926 9,383 Debt raised/(repaid) 37,133 ‐2,000 ‐5,684 ‐4,879
Growth, % (15.6) 20.0 18.4 Dividend (incl. tax) 0 ‐720 ‐720 ‐1,080
Margin, % 13.1 11.0 11.7 12.1 Cash flow from financing activities 37,703 ‐2,675 ‐6,404 ‐5,959
Interest paid ‐2,633 ‐2,986 ‐2,356 ‐1,966 Net chg in cash ‐24,647 ‐605 ‐106 ‐54
Other Non‐Operating Income 350 385 424 466
Pre‐tax profit 5,546 4,003 5,994 7,883
Tax provided ‐1,350 ‐681 ‐1,498 ‐1,971 Valuation Ratios
Profit after tax 4,196 3,323 4,495 5,913
FY17 FY18e FY19e FY20e
Others (Minorities, Associates) 0 0 0 0
Per Share data
Net Profit 4,196 3,323 4,495 5,913
EPS (INR) 7.0 5.5 7.5 9.9
Growth, % #DIV/0! (20.8) 35.3 31.5
Growth, % (20.8) 35.3 31.5
Net Profit (adjusted) 4,196 3,323 4,495 5,913
Book NAV/share (INR) 51.9 56.3 62.6 70.7
Unadj. shares (m) 545 604 604 604
FDEPS (INR) 7.0 5.5 7.5 9.9
Wtd avg shares (m) 604 604 604 604
CEPS (INR) 10.8 9.5 11.6 14.2
CFPS (INR) 8.4 7.0 10.4 13.2
DPS (INR) ‐ 1.0 1.0 1.5
Balance Sheet Return ratios
Y/E Mar, Rs mn FY17 FY18e FY19e FY20e Return on assets (%) 13.2 5.8 6.5 7.6
Cash & bank 1,744 1,139 1,033 979 Return on equity (%) 13.5 9.8 12.0 13.9
Debtors 12,459 13,144 14,440 15,894 Return on capital employed (%) 8.5 6.2 9.3 12.1
Inventory 5,473 5,750 7,035 8,477 Turnover ratios
Loans & advances 107 118 130 143 Asset turnover (x) 1.9 0.9 1.0 1.2
Other current assets 3,402 4,762 5,715 6,857 Sales/Total assets (x) 1.4 0.7 0.7 0.8
Total current assets 23,185 24,913 28,353 32,350 Sales/Net FA (x) 2.0 1.0 1.1 1.3
Investments 6,312 6,312 4,593 3,790 Working capital/Sales (x) 0.1 0.1 0.1 0.1
Gross fixed assets 62,852 64,852 67,252 70,252 Fixed capital/Sales (x) 1.0 1.0 0.9 0.8
Less: Depreciation ‐4,000 ‐6,367 ‐8,855 ‐11,492 Liquidity ratios
Add: Capital WIP 291 800 500 800 Current ratio (x) 1.3 1.4 1.4 1.4
Net fixed assets 59,143 59,285 58,898 59,560 Quick ratio (x) 1.0 1.1 1.0 1.0
Total assets 88,640 90,510 91,843 95,701 Interest cover (x) 3.0 2.2 3.4 4.8
Current liabilities 17,772 18,072 20,365 23,311 Dividend cover (x) 5.5 7.5 6.6
Provisions 1,444 2,166 2,816 3,380 Total debt/Equity (%) 119.2 104.0 78.4 57.9
Total current liabilities 19,217 20,239 23,181 26,691 Net debt/Equity (%) 113.6 100.6 75.6 55.6
Non‐current liabilities 38,266 36,466 31,081 26,597 Valuation
Total liabilities 57,483 56,705 54,262 53,288 PER (x) 11.2 14.1 10.4 7.9
Paid‐up capital 555 600 600 600 PEG (x) ‐ y‐o‐y growth n/a (0.7) 0.3 0.3
Reserves & surplus 30,587 33,190 36,965 41,798 Price/Book (x) 1.5 1.4 1.2 1.1
Shareholders’ equity 31,157 33,805 37,581 42,413 Yield (%) ‐ 1.3 1.3 1.9
Total equity & liabilities 88,640 90,510 91,843 95,701 EV/Net sales (x) 1.3 1.3 1.1 0.9
EV/EBITDA (x) 7.7 9.0 7.2 5.9
Source: Company, PhillipCapital India Research Estimates
EV/EBIT (x) 9.9 12.2 9.5 7.5


Rating Methodology
We rate stock on absolute return basis. Our target price for the stocks has an investment horizon of one year.
Rating Criteria Definition
BUY >= +15% Target price is equal to or more than 15% of current market price
NEUTRAL ‐15% > to < +15% Target price is less than +15% but more than ‐15%
SELL <= ‐15% Target price is less than or equal to ‐15%.

Management
Vineet Bhatnagar (Managing Director) (91 22) 2483 1919
Kinshuk Bharti Tiwari (Head – Institutional Equity) (91 22) 6246 4101
Jignesh Shah (Head – Equity Derivatives) (91 22) 6667 9735
Research
Automobiles Engineering, Capital Goods Pharma & Specialty Chem
Dhawal Doshi (9122) 6246 4128 Jonas Bhutta (9122) 6246 4119 Surya Patra (9122) 6246 4121
Nitesh Sharma, CFA (9122) 6246 4126 Vikram Rawat (9122) 6246 4120 Mehul Sheth (9122) 6246 4123
Banking, NBFCs IT Services & Infrastructure Strategy
Manish Agarwalla (9122) 6246 4125 Vibhor Singhal (9122) 6246 4109 Naveen Kulkarni, CFA, FRM (9122) 6246 4122
Pradeep Agrawal (9122) 6246 4113 Shyamal Dhruve (9122) 6246 4110 Neeraj Chadawar (9122) 6246 4116
Paresh Jain (9122) 6246 4114 Logistics, Transportation & Midcap Telecom
Consumer & Retail Vikram Suryavanshi (9122) 6246 4111 Naveen Kulkarni, CFA, FRM (9122) 6246 4122
Naveen Kulkarni, CFA, FRM (9122) 6246 4122 Media
Preeyam Tolia (9122) 6246 4129 Naveen Kulkarni, CFA, FRM (9122) 6246 4122 Technicals
Vishal Gutka (9122) 6246 4118 Vishal Gutka (9122) 6246 4118 Subodh Gupta, CMT (9122) 6246 4136
Cement Metals Production Manager
Vaibhav Agarwal (9122) 6246 4124 Dhawal Doshi (9122) 6246 4128 Ganesh Deorukhkar (9122) 6667 9966
Economics Vipul Agrawal (9122) 6246 4127 Editor
Anjali Verma (9122) 6246 4115 Mid-Caps Roshan Sony 98199 72726
Shruti Bajpai (9122) 6246 4135 Deepak Agarwal (9122) 6246 4112 Sr. Manager – Equities Support
Oil & Gas Rosie Ferns (9122) 6667 9971
Sabri Hazarika (9122) 6246 4130
Sales & Distribution Corporate Communications
Ashvin Patil (9122) 6246 4105 Asia Sales Zarine Damania (9122) 6667 9976
Kishor Binwal (9122) 6246 4106 Dhawal Shah 8522 277 6747
Bhavin Shah (9122) 6246 4102 Sales Trader
Ashka Mehta Gulati (9122) 6246 4108 Dilesh Doshi (9122) 6667 9747 Execution
Archan Vyas (9122) 6246 4107 Suniil Pandit (9122) 6667 9745 Mayur Shah (9122) 6667 9945

Contact Information (Regional Member Companies)

SINGAPORE: Phillip Securities Pte Ltd MALAYSIA: Phillip Capital Management Sdn Bhd HONG KONG: Phillip Securities (HK) Ltd
250 North Bridge Road, #06‐00 RafflesCityTower, B‐3‐6 Block B Level 3, Megan Avenue II, 11/F United Centre 95 Queensway Hong Kong
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Digitally signed by Vikram Vilas Suryavanshi
Vikram Vilas
DN: c=IN, o=Personal,
pseudonym=34cc81514f064e4d9725d2836c2c13ff,
2.5.4.20=05b3477dbcbe37348e8f28e3d6a0c12da343db31e5e
c7bfb8f3420bbd40b5b12, postalCode=421202,
st=Maharashtra,
Suryavanshi
2.5.4.45=0341006232376635393464323462333466313836376
53335346362343761373638616339333934663138633766326
66262633034303838323666323064633333623665,
serialNumber=eb1164cde1b22a71dddeeaf58164a72cdc84d4d
9f522eff6df41efb8603abf1a, cn=Vikram Vilas Suryavanshi
Date: 2017.12.19 18:40:38 +05'30'

PC - Sintex Plastics Initiation - Dec 2017 20171219185011

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INSTITUTIONAL EQUITY RESEARCH

16.0 RoCE (pre tax) RoE 35000 Net Debt D/E (RHS) 1.4

14.0 30000 1.2

12.0 25000 1.0

2.0 5000 0.2

Digitally signed by Vikram Vilas Suryavanshi

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