The stock of Gujaratbased plastic goods m a k e r Si n te x Industries apears to be rebounding after hitting an all-time low of 16 last month – down more than 70% from a year ago. Over the past one month, the stock has reversed its direction, and its recent results appear encouraging.
A key growth driver earlier, the company’s business contrac ted consistently over the past three years owing to delayed payments. This grew 8.7% to 263.3 crore during the quarter to September, which was cheered by investors. The other businesses — prefabricated structures, customs moulding and textile are doing reasonably well.
Yet, the company needs to do a lot more. Its debt-equity ratio has not improved during the past six months. In fact, its net debt has gone up marginally while its interest cost for the quarter to September at 47 crore was the highest ever it paid in a quarter.
If the euphoric run-up in the scrip has to continue, Sintex will need to improve on these parameters.
A key growth driver earlier, the company’s business contrac ted consistently over the past three years owing to delayed payments. This grew 8.7% to 263.3 crore during the quarter to September, which was cheered by investors. The other businesses — prefabricated structures, customs moulding and textile are doing reasonably well.
Yet, the company needs to do a lot more. Its debt-equity ratio has not improved during the past six months. In fact, its net debt has gone up marginally while its interest cost for the quarter to September at 47 crore was the highest ever it paid in a quarter.
If the euphoric run-up in the scrip has to continue, Sintex will need to improve on these parameters.
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