Parekh Aluminex - Stock and Results Analysis
Parekh Aluminex is the largest player in aluminium foil and related products in India. The products find use in the lifestyle segment and are bound to see more usage in coming years. We recommend investors to buy in small quantity now, and keep adding over a period of time. It has potentialto give handsome returns over long term of 1 to 2 years.
About the Company
Parekh Aluminex Limited is the largest manufacturer and exporter of Aluminium Foil Containers (AFC), and also one of the biggest manufacturers in Aluminium Foil Rolls (AFRs) and Aluminium Lids, in India. Sound business strategies have helped Parekh Aluminex sign a marketing agreement with one of the largest Aluminium manufacturing companies in the world for marketing in Germany and also get the customers like Emirates Airlines, Singapore Airlines, Thai Airways by accquiring a company in Singapore.
Parekh Aluminex has a strategic tie up with Hindalco Industries to get aluminium at a preferential rate. Moreover, Parekh Aluminium is also the biggest supplier of AFCs to Railways, Flight kitchens, Airlines and Five star hotels.
Investment Rationale
The company had a revenue growth of 41%, PAT and EPS growth of 46% for the FY09. At a PE of 3.1, the stock is hugely undervalued and has the potential to double in 1 year
