valuation
Haldyn Glass is in the business of manufacturing glass bottles for use in the liquor, pharmaceutical, retail, food and beverage, and other industries.
The product is more hygienic and eco-friendly than substitutes.
Management expects good growth in the customer industries – particularly liquor, which has grown at 12% p.a. in the recent past.  They are investing in advanced technologies and bottle-printing and decoration facilities to add value to its offerings to the food and beverage sector.
The company reported good growth in revenues and operating profits in the last five years – reporting over 45cr in operating profits on revenues of about 175cr in the year ending 31st March, 2012.  It operated with minimal net debt as at that date.
The company’s order book is dependent on the global and domestic economic cycles.
The business requires investment in up to date technologies to remain competitive.  The product is largely a commodity and doesn’t appear to be differentiated in any significant manner.
The cost structure is adversely impacted by natural gas price rises (for furnace) as well as increases in cullet, chemicals, minerals, etc. that are required for production.
By: AI