Why we added India's Leading Plastic Products Manufacturing Company | Sector Advantage
This post covers the recent inclusion of a company to our portfolio which aims to invest in the best companies across a handful of Sectors to capitalize on The India Story!!!
Plastic products manufacturing is a vital industry in India, and this company is one of the leading players in the market. With 25 manufacturing facilities spread across the country, they offer a comprehensive range of plastic products, including packaging and air bubble film (used in Amazon deliveries). They are also leaders in the plastic furniture market.
One of the most impressive financial facts about this company is that they are debt-free. Additionally, they have been growing consistently at a rate of 19% and have maintained a stable yet high return on equity (ROE) of 28% for the past 10 years.
Despite the recent posting of operating profit margins (OPMs) of 13% which is lower than their stable average, we believe that the company's margins will soon bounce back to their average of 17%. This is because as plastic prices go up, their bottom line will improve which has doubled in the past 5 years and the stock price is nearing their all-time highs.
Overall, this company is a solid investment opportunity for those looking to gain exposure to the growing plastic products market in India. The company's strong financials, steady growth, and consistent ROE make it a reliable and profitable choice. With the current market conditions, now is a good time to consider investing in this company.
If you like the stock prospective above, you can invest in that and 14 other companies with similarly strong prospects and capitalize on “The India Story”
This is how the portfolio currently looks like, in terms of weightage to industries.