Current price 14.90

Sector Chemicals

No of shares 226705750

52 week high 19.80

52 week low 5.39

BSE Sensex 28261.08

Nifty 8570.90

Average Volume 217,212

BSE Code 505710

Grauer weil India Ltd.

Recommendation

– BUY/HOLD

Date – 20/03/2015

Company Overview

Grauer & Weil (India) Limited (GWIL), initially set up as a partnership concern in May 1940 by British nationals

Mr Grauer and Mr Weil, was taken over by the More family during 1991 subsequent to a series of change in

the promoters. In the initial days of our business, we used to manufacture and supply a wide range

of polishing compounds, mops, fibre, wheels, et GWIL operates in four broad segments: Chemicals,

Engineering, Paints and Shopping Mall.

The chemical division manufactures and sells chemicals required for metal finishing (electroplating chemicals),

their intermediates and other specialty chemicals and contributes around 66% of the total revenue of GWIL.

Growel established various new technical tie-up and JV alliances with world famous names in plating industry.

Since then, we were established ourselves as undisputed leader in the field of electroplating in the Indian

Surface Finishing Industry.

The engineering division is involved in manufacturing and providing turnkey solution for electroplating plants,

effluent treatment plants and other engineering products. The company manufactures and supplies

electroplating and allied chemicals and engineering plants to the surface coating industries. The company’s

engineering products include electroplating for tanks, barrels, transport wagons, automation, agitation, drying,

test equipment, rectifiers, jigs and fixures, titanium anode baskets, oil separator, sludge settler, scrubber;

filteration systems such as filters and seals, phosphating, dacrotizing, effluent treatment, industrial degreasing,

spare parts, and dedicated plating systems including hard chrome plating of gun barrels, rim plating,

countinous plating, and return type.

Growel further expanded its business activities and entered into newer and synergetic areas of business's like

manufacturing Industrial Lubes & Protective coatings and, so also diversified into real estate development.

Grauer is headquartered in Mumbai, Maharashtra, India. The current market capitalisation stands at Rs

337.79 crore.

Category No. of Shares Percentage

Promoters 155,700,759 68.68

General Public 54,434,571 24.01

Other Companies 10,829,449 4.78

Directors 1,998,240 0.88

Foreign - NRI 1,637,003 0.72

Others 1,275,608 0.56

Foreign - OCB 787,500 0.35

Financial Institutions 22,000 0.01

NBFC and Mutual

Funds20,620 0.01

Market Cap (Rs Cr) – 336.66

Company P/E (x) – 10.38

Industry P/E (x) – 53.84

Book Value (Rs) – 8.65

Price / BV (x) – 1.76

Dividend (%) – 16%

EPS (TTM) – 1.43

Dividend Yield (%) – 1.08%

Face Value (Rs) - 1

Share Holding Pattern Financial Details

Balance Sheet

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

Sources Of Funds

Total Share Capital 22.67 22.67 22.67 22.67 22.67

Equity Share Capital 22.67 22.67 22.67 22.67 22.67

Reserves 173.33 147.29 131.16 112.41 100.62

Networth 196.00 169.96 153.83 135.08 123.29

Secured Loans 71.02 91.49 107.35 140.97 121.53

Unsecured Loans 6.12 7.67 7.26 4.68 3.21

Total Debt 77.14 99.16 114.61 145.65 124.74

Total Liabilities 273.14 269.12 268.44 280.73 248.03

Application Of Funds

Gross Block 294.02 288.88 269.26 264.46 135.60

Less: Accum. Depreciation 68.82 58.08 47.90 38.33 30.82

Net Block 225.20 230.80 221.36 226.13 104.78

Capital Work in Progress 1.22 0.16 2.86 2.53 96.21

Investments 4.70 4.75 3.91 1.64 1.64

Inventories 61.39 61.99 49.80 49.05 34.74

Sundry Debtors 94.72 79.74 75.62 61.06 44.68

Cash and Bank Balance 6.21 5.66 3.79 7.89 5.58

Total Current Assets 162.32 147.39 129.21 118.00 85.00

Loans and Advances 32.24 30.73 31.23 30.03 21.90

Fixed Deposits 0.00 0.00 0.00 1.19 1.35

Total CA, Loans & Advances 194.56 178.12 160.44 149.22 108.25

Current Liabilities 135.19 131.52 104.95 89.97 54.88

Provisions 17.34 13.18 15.18 8.83 7.98

Total CL & Provisions 152.53 144.70 120.13 98.80 62.86

Net Current Assets 42.03 33.42 40.31 50.42 45.39

Total Assets 273.15 269.13 268.44 280.72 248.02

Contingent Liabilities 15.49 15.61 19.20 1.00 1.87

Book Value (Rs) 8.65 7.50 6.79 59.59 54.38

Profit and Loss Account

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

Income

Sales Turnover 385.86 335.01 333.23 332.57 262.51

Excise Duty 0.00 0.00 0.00 23.87 15.21

Net Sales 385.86 335.01 333.23 308.70 247.30

Other Income 3.42 2.11 2.85 3.12 0.59

Stock Adjustments -5.86 12.13 4.79 4.28 1.63

Total Income 383.42 349.25 340.87 316.10 249.52

Expenditure

Raw Materials 218.88 206.31 198.90 174.24 136.45

Power & Fuel Cost 4.19 3.69 3.29 3.31 2.16

Employee Cost 42.80 38.17 30.14 25.18 20.69

Other Manufacturing Expenses 0.00 0.00 0.00 6.02 3.71

Selling and Admin Expenses 0.00 0.00 0.00 53.99 41.52

Miscellaneous Expenses 53.47 45.70 47.22 9.97 7.73

Total Expenses 319.34 293.87 279.55 272.71 212.26

Operating Profit 60.66 53.27 58.47 40.27 36.67

PBDIT 64.08 55.38 61.32 43.39 37.26

Interest 16.74 20.54 21.19 15.82 9.91

PBDT 47.34 34.84 40.13 27.57 27.35

Depreciation 11.49 10.99 9.88 7.26 4.39

Profit Before Tax 35.85 23.85 30.25 20.31 22.96

PBT (Post Extra-ord Items) 35.85 23.85 30.25 20.31 22.96

Tax 5.06 4.03 7.03 5.89 6.54

Reported Net Profit 30.79 19.83 23.21 14.41 16.42

Total Value Addition 100.45 87.55 80.65 98.48 75.80

Equity Dividend 3.63 2.72 3.40 1.81 1.81

Corporate Dividend Tax 0.62 0.46 0.55 0.29 0.30

Per share data (annualised)

Shares in issue (lakhs) 2,267.06 2,267.06 2,267.06 226.71 226.71

Earning Per Share (Rs) 1.36 0.87 1.02 6.36 7.24

Equity Dividend (%) 16.00 12.00 15.00 8.00 8.00

Dividend and Bonus History

Index and Company Price Movement Comparison

Symbol Value Action

RSI(14) 47.317 Neutral

STOCH(9,6) 61.448 Buy

STOCHRSI(14) 69.368 Buy

MACD(12,26) -10.540 Sell

ADX(14) 32.122 Sell

Williams %R -44.399 Buy

CCI(14) 52.1914 Buy

ATR(14) 20.9821 High Volatility

Highs/Lows(14) 0.0000 Neutral

Ultimate Oscillator 50.448 Neutral

ROC 22.598 Buy

Bull/Bear Power(13) 8.7840 Buy

Technical Indicators

PBIT – 12.63 v/s 12.54

RoCE – 19.25 v/s 16.49

RoE – 11.96 v/s 16.49

Net Profit Margin – 7.91 v/s 5.88

Return on net worth – 15.71 v/s 11.66

D/E Ratio – 0.39 v/s 0.58

Interest Cover – 3.14 v/s 2.16

Current Ratio – 0.85 v/s 0.79

Reserves – 173.33 cr v/s 147.29 cr

PAT – 30.79 cr v/s 19.83 cr

Total assets – 273.15 cr v/s 269.13 cr

Net sales – 385.86 cr v/s 335.01 cr

Book Value – 8.65 v/s 7.50

Important Ratios (YoY)

Days BSE

30 16.24

50 16.66

150 15.59

200 13.96

Simple Moving Average

Investment Rationalize

Grauer Weil India Ltd. is the market leader of electroplating chemicals manufacturing in the country and a

prominent player of turnkey solutions for electroplating plants and effluent treatment plants

Company has able to generate consistent revenue even in the adverse market conditions along with a cash

reserve of Rs.173.33 crore.

To manufacture electro-chemicals the company had entered a technical collaboration with Union Inks and

Graphics Pte Singapore. It had entered into the collaboration with M/s Enthone-OMI Inc. U.S.A. and M/s

Aucos of Germany and M/s Kabushiki Kaisha Nippon Dacro Shamrock, Japan. A joint venture agreement has

been entered into with M/s Goema GmbH of Germany to manufacture Effluent Treatment Plants and Metal

Recovery Systems, and has entered into Technical Collaboration with Manz GmbH of Germany and Surfilco

Inc of USA for assistance in design, manufacture and marketing of Plating Plants, Filters, Pumps and other

products.

The company is able to reduce debt considerably in the last few years and increase its GPM to 12.3% along

with improving financial ratios.

Improvement in economic cycle and manufacturing cycle will help the company to use its manufacturing

facilities to maximum and will add on to the sales of the company.

Revenue from its Paints, Lubricants and Anodizing facilities and companies fully owned subsidiaries will add

to the profits of the company.

Most of the companies products have very less domestic competition and Price to Sales Ratio stands at

very attractive 0.88%.