PG Foils - First time presentation

2022년 9월 26일

PG Foils is a flagship company of Prem Group, and is engaged in the manufacturing of Aluminum Foil in various forms.

The Co manufactures a range of hard Aluminium Foil suitable for packaging of Pharmaceutical Products such as Tablet, Capsules as well as FMCG products, dairy products etc.

Revenue Split
Manufactured Goods (94% in FY21 vs 97% in FY20): This includes revenues derived from sale of manufactured aluminium foil, glassine paper, ingot and polythene.
Traded Goods (6% in FY21 vs 3% in FY20): This includes revenues derived from trading in Aluminium Wire Rod & Ingots, granules, chemicals etc.

Geographical Split
India: 86% in FY21 vs 89% in FY20
Outside India: 16% in FY21 vs 11% in FY20

PGFL has established a track record of more than three decades in manufacturing of aluminium foils and has long-standing relationships with its key clientele in pharmaceutical and fast-moving consumer goods (FMCG) industries as well as manufacturers of packing products for the dairy industry.
The Co has investments worth 194 crores as of March 2021 in various mutual funds.

General Notes

1. Family business and Investment in MF are huge
2. Cash hoarding in balancesheet looks nice.
3. QoQ EPS has jumped significantly and i am expecting Sep qtr to be significantly good
4. Short term borrowings have increased but does not look to be worried with cash balance and investments co has on its balancesheet
5. Debtor, Inventory and Payables days have significantly improved QOQ
6. ROCE on YOY basis is 16% from 7% in previous year.
7. Recently co has made presentation to markets after very long time looking for growth
8. Only redflag at this moment for me is Public holding is above 30%
9. This is worth to be added at 320 for 1x