VALUE PICK MAY ’18: GMM Pfaudler Limited, Update
Update:
Q2 FY 2019-20 Numbers
GMM Pfaudler Limited – a leading supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical markets has presented its quarter 2 numbers today during the market hours. Here are key points –
Revenue from operations stood at INR 136.09 Cr in September ’19 up 37.22% Y-O-Y from INR 99.18 Cr in September ’18. However, the quarter-on-quarter revenue grew by 4.49% (INR 130.25 Cr for June ’19)
Quarterly Net Profit at INR 18.02 Cr in September 2019 up 22.94% Q-O-Q from INR 14.66 in June 2019. However, year-on-year profit grew 83.85% (INR 9.80 Cr September 2018)
Read: Kirloskar Brothers Ltd Quarterly Numbers
GMM Pfaudler EPS has increased to Rs. 12.33 in September 2019 from Rs. 6.71 in June 2019.
GMM Pfaudler shares currently trading at INR 1456 on November 07, 2019 (NSE) and is trading above its 200 EMA (1299) and 50 EMA (1429)
Also Read: Finblab Value Pick Stock “Polycab India Ltd“
2 MAY 2018
Company Background –
History
GMM Pfaudler was established in the year 1962 as Gujarat Machinery Manufacturers and listed on the Bombay Stock exchange (BSE).
In the year 1987 Pfaudler Inc., USA the world leader in Glass Lined equipment subscribed to 40% equity to form a joint venture.
Pfaudler Inc. further increased their stake to 51% in the year 1999 and the name of the company was changed to GMM Pfaudler Ltd.
Business
GMM Pfaudler Limited is a leading supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical markets.
With over 50+ years of manufacturing experience, GMM Pfaudler is a well-established and financially stable company. With a market share of more than 50% in Glass Lined equipment, GMM Pfaudler is the market leader in India.
GMM Pfaudler – Product Protfolio
The Company’s product portfolio consists of five different categories;
1) Glass Lined Equipment:
- GMM Pfaudler glass lined equipment are the long-recognized standard in the chemical process industries and are engineered and built per ASME code Section VIII Div. 1.
- European design codes like AD Merkblatter, Stoomwezen under the Pressure Equipment Directive are available on request. The company also certified by SELO for supplies to the People′s Republic of China.
2) Filtration & Drying:
- GMM Pfaudler’s Filtration and Drying equipment are engineered and built as per ASME code Section VIII Div. 1.
- The Company offer Pilot Plant facilities for on-site tests so that clients can gain experience with the advanced features of GMM Pfaudler’s equipment while gathering reliable scale-up and process data.
- The Company also assist in the selection of the filter media to meet the specified product and process requirements.
3) Mixing Systems:
- GMM Pfaudler offers mixing systems for Stainless and Alloy Steel Reactors.
- The team of highly trained engineers at GMM Pfaudler will design an optimal mixing solution for client’s specific mixing requirement.
- Using a fluid mixing design software to simulate the performance of your existing agitator system, the company is able to recommend a superior agitator design that will optimize your mixing by reducing batch time and power consumption and improving product quality.
4) Engineered Systems:
- GMM Pfaudler′s Engineered Systems department has extensive experience in the designing of complete Engineered Systems.
- The Company also provide auxiliary equipment for vacuum, heating, pumping and instrumentation. Complete Systems can be pre-assembled with equipment, piping, instrumentation and wiring.
- A pre-assembled system assures proper fitment and alignment of all components, saving time and money during installation.
5) Heavy Engineering:
- GMM Pfaudler has more than a decade of experience in fabricating Heavy Engineering Equipment. This equipment includes Heat Exchangers and Pressure Vessels.
- The Company’s in house design and engineering capabilities along with its state of the art manufacturing facility with an installed capacity of processing 6000 MT per annum and a covered shop floor area of around 25000 M2 allow it to accommodate even the most complex and non-standard requirements and specifications.
- GMM Pfaudler has handled a vast array of materials like Monel, Inconel, Hastelloy, Incolloy, 2RE69, Duplex, Super duplex, SS 904L, Alloy 59, Brass, Cupro-Nickels as well as standard materials like Stainless Steel, Low Alloy Steel & Carbon Steel.
Over the years, GMM Pfaudler has diversified its product portfolio to include (1) Mixing Systems, (2) Filtration & Drying Equipment, (3) Engineered Systems, and (4) Tailor Made Process Equipment.
Acquisition by GMM Pfaudler
- In 2008, GMM Pfaudler acquired Mavag AG, Switzerland. Mavag supplies highly engineered equipment for critical Filtration, Drying and Mixing applications to the Pharmaceutical and Biotech industries.
- In 2015, Deutsche Beteiligungs AG (DBAG) a leading German private equity company acquired Pfaudler Inc., USA.
Listed On
The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Stock Information
Share Holding Pattern
GMM Pfaudler – Financials
Conclusion –
Having solid management team, GMM Pfaudler Limited is enjoying a market share of more than 50% in Glass Lined equipment,
the company promoters have solid and steady stake since last 4 quarters, and recently a well-known Mutual Fund house has recently purchased a few thousand shares of the company,
under Mission 2020, the company has we changed its theme from Creating our Future to Accelerating Growth. The company is hopeful that many of its initiatives will act as a stimulus for growth in the coming years.
Considering the techno-funda analysis, the above mentioned factors and sector outlook in mind; GMM Pfaudler Limited looks good at INR 780. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also).
Also Read –
1) Finblab’s April – 18 Valuepick RUCHIRA PAPERS LIMITED
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