Precision Pipes is in the business of manufacturing PVC Profiles and Extrusions for the auto and white goods (refrigerators) industries with autos being the dominant segment (90% of revenues) by far. The company has a prominent customer base including the likes of Maruti, Tata, GM, Toyota etc. Its white goods customers include the likes of Voltas, Godrej, Videocon etc. It primarily operates with a cost advantage to global peers and a technological edge to domestic competitors. It has a technical collaboration with two Japanese companies. The industry is set to grow at 10%+ over the next decade. The company reported consistent growth in revenues and operating profits over the last five years – reporting over 50cr in operating profits on revenues of over 200cr in the last financial year. It used no net debt (as at 30 th September, 2011) to finance its operations. It is primarily dependent on PVC prices, which is dependent on crude oil prices a...
An Individual Investor's Perspectives On The Indian Financial Markets