Kabra Extrusion Technik- Investment Analysis
- Yash Mehta
- Dec 20, 2020
- 2 min read
Kabra Extrusiontechnik is engaged in the flagship company of Kolsite group and one of the largest players in the plastic extrusion machinery known for its innovative offerings.
Kabra Extrusion is one of India’s premier manufacturer & exporter of extrusion plants.
About Kolsite Group:
Kolsite Group commenced its operations in 1962; a leader in Plastic Extrusion Machinery in India. The group is known for being the pioneer of various technologically advanced plastic extrusion solutions. Kolsite group under its roof has 4 flagship companies dealing in different avenues like Extrusion Machinery, Master Batches, Secondary packaging, and Agency work.
KOLSITE GROUP OF COMPANIES:
Kabra Extrusiontechnik Limited (KET)
Plastiblends India Limited (PBI)
Maharashtra Plastic & Industries Limited (MPI)
Kolsite Corporation LLP – Agency Division (KCLLP)
Major product lines offered:
Single Screw Extrusion lines for PVC, cPVC, PVC Foam Core, Polyolefins, and, PP-R pipes
Twin screw lines for extrusion of RPVC/ CPVC pipes, PVC profiles & pellets
High Speed Flat and Round Drip Tube lines
Monolayer Blown Film Lines
Co-Ex A/B/A Blown Film Lines
Multi-Layer (3/5/7/9/11 Layer) Blown Film Lines
High Capacity Mixer-coolers
Downstream and auxiliary equipment for pipe extrusion plants.
Corrugated Plastics Pipe Extrusion Plants
Pipe Belling and Socketing Machines
Sheet Extrusion Lines
High Speed Telecom Micro-duct Extrusion Lines and bundled sheathing lines
Auto feeding Systems
Fundamentals:
It's a microcap company having market cap of 295cr and has debt to equity ratio of 0.12. Promoters anf FII's are increasing their stake gradually from 2017.
Promoters stake is up from 56.18% to 57.84%.
Company had given dividend to its shareholder in past except in 2019 when it had skipped the dividends. Net Profit and EPS is not stable currently.
Charts Analysis:
Kabra is trading 45% below its all time high of 166 and was in downtrend since 2017. Stock had made low of 35.05 in this covid crash. From 2018- present, stock was consolidating and was facing resistance at 84-91 zone. It had formed Inverse Head and Shoulder reversal pattern and had given breakout with good volumes. Currently stock is retesting it's resistance zone and the setup for positional traders/investors looks decent. Buying range: 85-95 (accumulate in this range and add on dips) Stop loss: 72 First Target: 135
Maximum time horizon for target to get achieved: 400 days.
Plan your trade properly.
Disclaimer: Consult your financial planner/advisor before taking any action based on views shared in this blog. We are not responsible for any loss or gains that you incurred in this trade.
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