WEBSITE BSE:0 NSE: Inc. Year: 1989 Industry: Plastic Products My Bucket: Add Stock
Last updated: 15:31
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1. Business Overview
Sanco Industries Ltd. is an Indian manufacturer of a wide range of plastic pipes and fittings. The company produces PVC, CPVC, HDPE, MDPE, SWR, and casing pipes, along with their associated fittings. These products primarily cater to applications in plumbing, sanitation, water supply, agriculture (irrigation), borewell casing, and electrical conduits. The core business model involves manufacturing these plastic products and distributing them through a network to various end-users and projects. The company generates revenue through the sale of these manufactured plastic pipes and fittings.
2. Key Segments / Revenue Mix
Sanco Industries primarily operates within a single business segment: "Plastic Products." The company's revenue is derived almost entirely from the manufacturing and sale of its diverse range of plastic pipes and fittings. Specific breakdowns of revenue contribution by pipe type (e.g., PVC vs. CPVC vs. HDPE) or end-use application (e.g., agriculture vs. plumbing) are typically not publicly disclosed by the company.
3. Industry & Positioning
Sanco Industries operates in the highly competitive and fragmented Indian plastic pipes and fittings industry. This sector is characterized by the presence of several large national players (e.g., Supreme Industries, Astral, Finolex Industries), a multitude of regional brands, and unorganized players. Sanco Industries is a smaller-to-mid-sized regional player, likely with a stronger presence in specific geographies within India. Its positioning is generally based on competitive pricing, product quality within its target segments, and a developing distribution network, competing for market share against both larger established brands and other regional manufacturers.
4. Competitive Advantage (Moat)
Sanco Industries operates in a commoditized industry where product differentiation is limited. Its competitive advantages are likely modest:
Regional Presence & Distribution: A developed dealer network and manufacturing base in its primary operating regions can provide some logistical advantages and customer proximity.
Cost Efficiency: For smaller players, operational efficiency and competitive pricing can be a temporary advantage, though susceptible to raw material fluctuations.
Product Portfolio: A comprehensive range of pipes and fittings under one brand can appeal to distributors and contractors seeking a single-source solution.
The company generally lacks significant brand equity, proprietary technology, or dominant scale that would constitute a strong, durable moat against larger national players.
5. Growth Drivers
Infrastructure Development: Government initiatives in water infrastructure (Jal Jeevan Mission), sanitation, irrigation, and urban development drive demand for pipes and fittings.
Housing & Construction: Growth in residential and commercial real estate directly fuels demand for plumbing and drainage solutions.
Agricultural Growth: Continued focus on efficient irrigation systems and agricultural productivity increases the need for PVC and HDPE pipes.
Replacement Demand: Aging water infrastructure and existing piping systems create a consistent demand for replacement and upgrades.
Shift from Unorganized to Organized: A gradual shift of market share from unorganized local players to organized manufacturers due to quality, standardization, and GST compliance.
6. Risks
Raw Material Price Volatility: Key raw materials like PVC resin and other polymers are crude oil derivatives, making input costs highly susceptible to global oil price fluctuations and currency movements, directly impacting profitability.
Intense Competition: The presence of numerous large and regional players leads to pricing pressures and limits pricing power.
Economic Slowdown: A downturn in the construction, real estate, or agricultural sectors can directly impact sales and revenue.
Regulatory Changes: Changes in building codes, environmental regulations, or import duties on raw materials could affect operations and costs.
Working Capital Management: High working capital requirements due to inventory management and credit to distributors can pose liquidity challenges.
7. Management & Ownership
The company is promoted by K.V.P. Raju and his family, who form the core promoter group. The management structure is typical for a mid-sized Indian company, with the promoter family often holding key executive positions and a significant ownership stake. Information regarding specific details of management quality or governance beyond standard disclosures requires in-depth review of corporate filings and track record. Promoter holding indicates a significant vested interest in the company's performance.
8. Outlook
Sanco Industries operates in an essential industry with underlying tailwinds from India's economic growth, infrastructure push, and agricultural needs. The demand for pipes and fittings is expected to remain robust. The company's ability to navigate intense competition, manage volatile raw material costs, and expand its distribution network will be crucial. While opportunities exist through market consolidation and increasing organized sector share, Sanco faces the challenge of scaling operations and building a stronger brand against well-capitalized national players. Its outlook is largely tied to its execution capabilities, regional strength, and efficient cost management in a competitive market.
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Market Cap ₹5 Cr.
Stock P/E -0.2
P/B 0.3
Current Price ₹3.6
Book Value ₹ 12.4
Face Value 10
52W High ₹4.2
Dividend Yield 0%
52W Low ₹ 1.7
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | TTM |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 202 | 343 | 109 | 172 | 112 | 37 | 2 | |
| Other Income | 0 | 0 | 0 | 0 | 0 | 2 | 0 | |
| Total Income | 203 | 343 | 109 | 172 | 113 | 39 | 3 | |
| Total Expenditure | 194 | 332 | 98 | 159 | 104 | 36 | 26 | |
| Operating Profit | 9 | 11 | 10 | 14 | 9 | 3 | -23 | |
| Interest | 5 | 6 | 7 | 7 | 7 | 2 | 0 | |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 0 | |
| Exceptional Income / Expenses | 0 | -0 | 1 | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 3 | 4 | 4 | 6 | 1 | 0 | -23 | |
| Provision for Tax | 0 | 1 | 1 | 2 | 0 | 0 | 0 | |
| Profit After Tax | 3 | 3 | 3 | 4 | 1 | 0 | -23 | |
| Adjustments | -0 | -0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 3 | 2 | 3 | 4 | 1 | 0 | -23 | |
| Adjusted Earnings Per Share | 2.7 | 2.4 | 3 | 4 | 0.9 | 0.4 | -20.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -95% | -77% | -64% | 0% |
| Operating Profit CAGR | -867% | NAN% | NAN% | 0% |
| PAT CAGR | 0% | NAN% | NAN% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 47% | -27% | -16% | -22% |
| ROE Average | -91% | -29% | -13% | -7% |
| ROCE Average | -28% | -6% | 3% | 7% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 28 | 31 | 31 | 35 | 36 | 36 | 15 |
| Minority's Interest | 4 | 4 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 3 | 2 | 4 | 12 | 12 | 12 | 11 |
| Other Non-Current Liabilities | -0 | 0 | 0 | 0 | 3 | 3 | 3 |
| Total Current Liabilities | 45 | 57 | 63 | 97 | 74 | 73 | 64 |
| Total Liabilities | 80 | 95 | 98 | 144 | 125 | 124 | 92 |
| Fixed Assets | 7 | 4 | 3 | 3 | 3 | 2 | 2 |
| Other Non-Current Assets | 7 | 12 | 9 | 16 | 23 | 27 | 37 |
| Total Current Assets | 65 | 78 | 86 | 124 | 100 | 94 | 54 |
| Total Assets | 80 | 95 | 98 | 144 | 125 | 124 | 92 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 2 | -22 | -25 | -32 | -44 | -43 |
| Cash Flow from Operating Activities | -0 | -1 | -1 | -1 | -5 | 2 | -2 |
| Cash Flow from Investing Activities | -3 | -1 | 5 | -1 | 0 | 2 | 0 |
| Cash Flow from Financing Activities | 3 | 2 | -8 | -4 | -8 | -2 | 1 |
| Net Cash Inflow / Outflow | -0 | -0 | -5 | -7 | -13 | 2 | -1 |
| Closing Cash & Cash Equivalent | 2 | 1 | -27 | -32 | -44 | -43 | -44 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 2.67 | 2.42 | 2.96 | 3.96 | 0.91 | 0.35 | -20.27 |
| CEPS(Rs) | 3.33 | 3.33 | 3.92 | 4.87 | 1.55 | 0.84 | -19.95 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 26.82 | 29.99 | 29.49 | 33.64 | 34.79 | 35.37 | 12.75 |
| Core EBITDA Margin(%) | 4.04 | 3.06 | 9.39 | 7.67 | 7.5 | 3.08 | -965.49 |
| EBIT Margin(%) | 3.94 | 2.83 | 9.97 | 7.34 | 7.04 | 6.15 | -969.71 |
| Pre Tax Margin(%) | 1.58 | 1.06 | 3.79 | 3.44 | 1.21 | 0.98 | -972.84 |
| PAT Margin (%) | 1.37 | 0.73 | 2.8 | 2.37 | 0.83 | 0.96 | -972.84 |
| Cash Profit Margin (%) | 1.69 | 1 | 3.71 | 2.91 | 1.41 | 2.31 | -957.1 |
| ROA(%) | 3.44 | 2.85 | 3.15 | 3.37 | 0.69 | 0.29 | -21.56 |
| ROE(%) | 10.02 | 8.58 | 9.95 | 12.55 | 2.65 | 1 | -91.44 |
| ROCE(%) | 14.78 | 15.85 | 15.39 | 16.07 | 8.76 | 2.42 | -27.79 |
| Receivable days | 60.58 | 43.71 | 171.19 | 134.91 | 193.51 | 394.76 | 4143.97 |
| Inventory Days | 24.11 | 14.51 | 60.66 | 63.69 | 124.15 | 395.76 | 4713.77 |
| Payable days | 30.11 | 19.76 | 83.3 | 90.81 | 140.44 | 252.89 | 266.64 |
| PER(x) | 6.67 | 8.61 | 36.55 | 7.79 | 16.94 | 19.82 | 0 |
| Price/Book(x) | 0.55 | 0.69 | 3.67 | 0.92 | 0.44 | 0.2 | 0.6 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.2 | 0.17 | 1.39 | 0.47 | 0.67 | 1.72 | 27.4 |
| EV/Core EBITDA(x) | 4.66 | 5.39 | 14.37 | 5.93 | 8.75 | 22.94 | -2.87 |
| Net Sales Growth(%) | 0 | 69.63 | -68.35 | 58.53 | -34.66 | -66.74 | -93.59 |
| EBIT Growth(%) | 0 | 21.76 | 11.56 | 16.78 | -37.4 | -70.93 | -1111.53 |
| PAT Growth(%) | 0 | -9.27 | 21.36 | 33.84 | -77.12 | -61.3 | -6572.38 |
| EPS Growth(%) | 0 | -9.39 | 22.29 | 33.84 | -77.12 | -61.3 | -5882.66 |
| Debt/Equity(x) | 0.96 | 1.22 | 1.38 | 1.46 | 1.67 | 1.61 | 3.95 |
| Current Ratio(x) | 1.44 | 1.36 | 1.36 | 1.28 | 1.34 | 1.3 | 0.84 |
| Quick Ratio(x) | 1.15 | 1.12 | 1.01 | 0.89 | 0.82 | 0.71 | 0.54 |
| Interest Cover(x) | 1.67 | 1.6 | 1.61 | 1.88 | 1.21 | 1.19 | -309.36 |
| Total Debt/Mcap(x) | 1.73 | 1.76 | 0.38 | 1.59 | 3.78 | 8.17 | 6.63 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 | 42.5 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 | 57.5 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 | 0.56 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 |
* The pros and cons are machine generated.
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