Please refer to important disclosures at the end of this report
1
Grindwell Norton Limited (GNL)
is India’s leading manufacturer of Abrasives
(Bonded, Coated, Non-Woven, Super
abrasives and Thin Wheels) and Silicon
Carbide. It also manufactures and markets High Performance Refractories and
Performance Plastics products. Going forward
, it is expected that the growth in
automotive industry will favour GNL as it has high
auto ancilliaries sectors versus competitors. Amidst
sluggish manufacturing
activity GNL seems to deliver healthy sales growth going ahead due to
rise in
demand and cyclical uptick in auto and industrial sector.
Also it has a strong
presence across the value chain, being a lead player in silicon carbide grains in
India. Strong pricing power with focus on profitability
allows GNL to log superior
margins versus its competitors. The company is virtually debt free with Debt to
equity (D/E) low at 0.01x of which Debt is `
8cr. The Company has been
maintaining a healthy dividend payout of 37.89%
(Div. Yield: 0.97%). The
compa
ny has reported a healthy return on equity (RoE) of 16% for the last 3
years. Hence Buy.
BUY
CMP
`
333
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 58.9
MF / Banks / Indian Fls 17.0
FII / NRIs / OCBs 4.1
Indian Public / Others 20.1
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
Grindwell Norton 2.3 9.8 162.4
52 Week High / Low 382/299
Avg. Daily Volume 9,173
Capital Goods
Market Cap (
`
cr) 3,692
5
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
Reuters Code GRNN.BO
GWN@IN
0.4
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
vaibhav.ag[email protected]ngelbroking.com
Grindwell Norton
Others |
Capital Goods
March 14, 201
7
Grindwell Norton
|
Capital Good
s
March
1
4
, 201
7
2
Research Team Tel: 022
-
39357800 E
-
mail: research@angelbroking.
com Website:
www.angelbroking.com
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Disclosure of Interest Statement
Grindwell Norton
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (
-
5 to 5%)
over
12 months investment period):
Reduce (
-
5% to
-
15%)
Sell (<
-
15
)