NITIN Fire Protection Industries has emerged as a beneficiary of the increased awareness among Indian corporates about protection from fire, following the recent terrorist attacks in Mumbai. The company has recently bagged several contracts from various banks and hotels for fire alarms and fire fighting systems, and has an order book of Rs 70 crore under this business segment. Going forward, its order book is likely to grow further. The company’s seamless cylinder business is also doing well and currently has pending orders worth around Rs 30 crore. For FY09, the company is expected to produce around 140,000 CNG cylinders at its plant in Vizag SEZ, against the installed capacity of 500,000 units, to generate revenues of around Rs 80 crore. This includes its CNG cascade business, which is also generating high demand from companies setting up CNG stations across the country. Considering that the number of cities with CNG networks is rapidly increasing in India, over the next couple of years, the demand growth for cylinders is likely to remain strong.
In the first half of FY09, the company’s net profit surged by 115% to Rs 19.5 crore, while its revenue doubled to Rs 124 crore. The company’s OPM rose by 200 bps to 20.6% in H1 FY09, which is likely to continue in the second half as well. At the current price of Rs 239, the scrip is trading at a P/E of 10.1 based on its consolidated net profit for trailing 12 months.
In the first half of FY09, the company’s net profit surged by 115% to Rs 19.5 crore, while its revenue doubled to Rs 124 crore. The company’s OPM rose by 200 bps to 20.6% in H1 FY09, which is likely to continue in the second half as well. At the current price of Rs 239, the scrip is trading at a P/E of 10.1 based on its consolidated net profit for trailing 12 months.
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