Current price 220.00

Sector Kitchen Sinks

No of shares 4658000

52 week high 714.90

52 week low 220.10

BSE Sensex 27890.13

Nifty 8429.70

Average Volume 7000

BSE Code 524091

Acrysil (India) Ltd.

Recommendation

– BUY/HOLD

Date – 22/04/2015

Company Details

Acrysil Ltd is one the leading manufacturer and exporter of Composite Quartz Granite Kitchen Sinks in India.

The company is engaged in the manufacture and sale of kitchen sinks in India. They offer granite kitchen sinks

and stainless steel kitchen sinks. They market their sinks under the brand name 'Carysil'. The Company is

also an original equipment manufacturer (OEM) for brands worldwide. The company is exporting their product

to more than 40 countries which includes Poland, China, Malaysia, Greece, Great Britain, France, Bahrain,

and USA.

The company’s products include granite sinks, stainless steel sinks, and wash basins. Its kitchen appliances

comprise faucets, hoods and chimneys, hobs and cook tops, ovens and microwave ovens, food waste

disposers, and wine chillers, as well as other free standing cooking products. The Company's granite sinks are

manufactured in various range, such as jazz series, vivaldi series, beethoven series, single series, swan

series, tango, and entertainment series. The Company’s stainless steel sinks range include quadro, trend,

vogue, catwalk, diva, glamour, and big bowl. Acrysil is the only company in all of Asia - and one of just four

companies worldwide - manufacturing composite quartz sinks. They are the India's largest sink manufacturer

in the non-steel category and the company has set the goal to be the No. 1 manufacturer across all

categories, in terms of branded volume.

Sternhagen, the German brand that symbolises the pinnacle of luxury in design and engineering will soon be

launched in India. The brand, owned by Acrysil GmbH, Germany (a wholly owned subsidiary of Acrysil Limited,

India). The Sternhagen collection of washbasins will initially have four nature inspired exclusive designs

namely, Düne (inspired by sand dunes), Seerose (inspired by petals of water lily), Golden Cut (90° geometric

cut design) and Kristall (inspired by natural crystal). The collection provides a subtle visual reminder of nature,

and each design connects people with emotions and memories associated with nature. The washbasins are

designed in Berlin, Germany by EMAMI DESIGN (No.1 of the worldwide Red Dot Design ranking). The current

market capitalisation stands at Rs 246.91 crore.

Market Cap (Rs Cr) – 246.30

Company P/E (x) – 27.30

Industry P/E (x) – 54.82

Book Value (Rs) – 79.41

Price / BV (x) – 6.38

Dividend (%) – 40 %

EPS (TTM) – 18.61

Dividend Yield (%) – 0.79 %

Face Value (Rs) – 10

Category No. of Shares Percentage

Promoters 2,201,350 47.26

General Public 1,418,747 30.46

Foreign - OCB 452,400 9.71

Foreign - NRI 313,929 6.74

Other

Companies262,257 5.63

Others 5,888 0.13

Directors 3,204 0.07

Financial

Institutions150 0.00

Central

Government75 0.00

Share Holding Pattern Financial Details

Balance Sheet

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 4.51 4.46 2.97 2.97 2.97

Equity Share Capital 4.51 4.46 2.97 2.97 2.97

Share Application Money 0.38 0.00 0.00 0.00 0.00

Reserves 33.72 27.40 25.10 22.54 17.87

Networth 38.61 31.86 28.07 25.51 20.84

Secured Loans 27.95 20.83 13.79 16.24 9.00

Unsecured Loans 5.18 4.11 2.62 0.88 1.84

Total Debt 33.13 24.94 16.41 17.12 10.84

Total Liabilities 71.74 56.80 44.48 42.63 31.68

Application Of Funds

Gross Block 54.04 46.88 39.19 35.89 30.48

Less: Accum. Depreciation 26.21 22.08 18.63 15.51 12.84

Net Block 27.83 24.80 20.56 20.38 17.64

Capital Work in Progress 0.82 0.06 0.40 0.47 0.73

Investments 7.40 5.19 1.09 0.33 0.00

Inventories 21.29 16.27 10.45 9.80 9.70

Sundry Debtors 24.39 20.06 14.86 16.23 10.86

Cash and Bank Balance 2.04 1.86 1.47 0.83 0.88

Total Current Assets 47.72 38.19 26.78 26.86 21.44

Loans and Advances 12.97 7.97 9.26 7.15 5.10

Fixed Deposits 0.00 0.00 0.00 0.26 0.15

Total CA, Loans & Advances 60.69 46.16 36.04 34.27 26.69

Current Liabilities 21.56 15.96 10.91 10.54 8.40

Provisions 3.43 3.46 2.71 2.28 4.96

Total CL & Provisions 24.99 19.42 13.62 12.82 13.36

Net Current Assets 35.70 26.74 22.42 21.45 13.33

Total Assets 71.75 56.79 44.47 42.63 31.70

Contingent Liabilities 9.03 6.89 8.41 8.41 0.10

Book Value (Rs) 84.80 71.46 94.46 85.85 70.12

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 103.71 78.45 62.23 56.08 47.13

Excise Duty 0.00 0.00 0.00 0.71 0.48

Net Sales 103.71 78.45 62.23 55.37 46.65

Other Income 0.77 0.81 0.89 0.44 -0.75

Stock Adjustments 5.32 2.61 1.12 0.14 1.90

Total Income 109.80 81.87 64.24 55.95 47.80

Expenditure

Raw Materials 58.96 43.64 33.17 24.70 21.45

Power & Fuel Cost 3.59 3.22 2.49 2.11 1.90

Employee Cost 6.98 4.81 5.57 5.14 4.31

Other Manufacturing Expenses 3.62 2.78 0.36 0.43 0.33

Selling and Admin Expenses 0.00 0.00 0.00 10.41 7.73

Miscellaneous Expenses 18.50 13.80 11.92 1.06 0.84

Total Expenses 91.65 68.25 53.51 43.85 36.56

Operating Profit 17.38 12.81 9.84 11.66 11.99

PBDIT 18.15 13.62 10.73 12.10 11.24

Interest 3.44 2.66 2.12 1.63 0.95

PBDT 14.71 10.96 8.61 10.47 10.29

Depreciation 4.20 3.79 3.32 2.86 2.65

Profit Before Tax 10.51 7.17 5.29 7.61 7.64

Extra-ordinary items 0.00 0.00 0.00 0.12 -0.17

PBT (Post Extra-ord Items) 10.51 7.17 5.29 7.73 7.47

Tax 2.54 1.66 1.37 1.68 1.57

Reported Net Profit 7.98 5.50 3.94 6.10 5.91

Total Value Addition 32.69 24.61 20.33 19.15 15.10

Equity Dividend 1.80 1.47 1.19 1.19 1.18

Corporate Dividend Tax 0.31 0.25 0.19 0.19 0.20

Per share data (annualised)

Shares in issue (lakhs) 45.08 44.58 29.72 29.72 29.72

Earning Per Share (Rs) 17.70 12.35 13.26 20.53 19.88

Equity Dividend (%) 40.00 33.00 40.00 40.00 40.00

Dividend and Bonus History

Index and Company Price Movement Comparison

Symbol Value Action

RSI(14) 63.615 Buy

STOCH(9,6) 66.966 Buy

STOCHRSI(14) 78.714 Overbought

MACD(12,26) 4.940 Buy

ADX(14) 24.813 Buy

Williams %R -16.703 Overbought

CCI(14) 97.4447 Buy

ATR(14) 5.2893 High Volatility

Highs/Lows(14) 6.6357 Buy

Ultimate Oscillator 58.764 Buy

ROC 4.981 Buy

Bull/Bear Power(13) 7.0360 Buy

Technical Indicators

PBIT – 12.62 v/s 11.37

RoCE – 19.75 v/s 17.28

RoE – 22.08 v/s 17.63

Net Profit Margin – 7.63 v/s 6.94

Return on net worth – 20.87 v/s 17.27

D/E Ratio – 0.87 v/s 0.78

Interest Cover – 4.06 v/s 3.70

Current Ratio – 0.88 v/s 0.79

Reserves – 33.72 cr v/s 27.40

PAT – 7.98 cr v/s 5.50 cr

Total assets – 71.75 cr v/s 56.76 cr

Net sales – 103.71 cr v/s 78.45 cr

Book Value – 84.80 v/s 71.46

Important Ratios (YoY)

Days BSE NSE

30 517.58

50 548.67

150 586.00

200 550.08

Simple Moving Average

Investment Rationalize

Acrysil Ltd manufactures and sells kitchen sinks/centers with Quartz composite sink being a niche product,

has no substitutes in the market.

Acrysil has tied up with some other German and Swiss companies for new products for both designing and

technology. It is selling to some big retail chains in USA and Europe. This will assure quality and revenue

growth.

The company launched a range of lifestyle kitchen appliances like faucets, hoods and chimneys, hobs and

cook tops, ovens and microwave ovens, food waste disposers and wine chillers which will help the company

to tap the market potential in more effective manner.

The Revenue has grown at an impressive CAGR of 17.1%, Asset Turnover of 1.22(x), sound ratios and

margins and Reserves of Rs.33.72 crore which will help the company in expansion plans.

Only 20% of the companies revenue from India which implies huge growth potential of the affordable high

quality fashionable products to the company to be sold in fast growing domestic market with more demand of

branded kitchen products by the fast growing middle class population.

Companies expansion plans in both manufacturing and number of outlets will add to the growth potential of

the company, as the number of nuclear families and real estate sector sentiment improves.

Being a capital intensive company Acrysil has been able to maintain fast and positive cash flow by having an

impressive business model.

Revenue from untapped international market and fully owned subsidiaries will add to the Profit of the

company.