Bombay Paints Ltd - Recommendation

Scripscan:Bombay Paints Ltd
Code:509475
Cmp:64
Target:97
Return percentage:50%
Duration:4-6 months

Background:Bombay Paints Limited was established in 1948 as a Private Limited Company by Mr. Y.A. Ezzudin and Mr. D. Jamaluddin.Bombay Paints Limited was also the first indigenous paint manufacturer to be certified as approved suppliers of heavy duty marine coatings for off-shore structures being fabricated in India for Oil and Natural Gas Commission.It was the first Company in the paint industry, to be recognized for its R&D activities, by the department of science technology, government of India, in the year 1969.

Introduction:Bombay Paints is engaged in the business of manufacturing a wide range of paints based on alkyds, epoxys, polyurethanes, vinyls and acrylic resins, which helps in reducing corrosion on metallic surfaces.The company caters to topline clientele which include big names like Godrej, TELCO,Siemens India Ltd.,mahindra & Mahindra Ltd.,Shipping Corporation of India Ltd,Essar, Hazira Lloyds’ Steel,Indian Oil Corporation ,Reliance Industries Ltd etc.The company has also recently commenced the manufacture of some very specialized intermediaries used in the production of paints. This has helped to establish new vistas and provide excellent opportunities in coveted markets,world-wide.The company now plans to diversify new fields like powder paints, speciality paints for EMI, RFI Coatings as well as products related to the automobile industry.Further,It has built and installed a very modern resin manufacturing plant with a view to provide an additional support for the various branches of Polymer technology and other diversification programmes.All these developments are expected to place the company in the top league.

Conclusion:Bombay Paints has become stronger with a compelling presence in the paint industry.It is set to report bumper numbers for the present fiscal.At 64rs its the cheapest paint play thats available in the market.The company should clock a turnover of over 50crs for these fiscal.With smallcap segment expected to move bombay paints can certainly turn out to be the dark horse of the upcoming run.Volume in the counter is too low since the company has a very tiny equity capital.So buy slowly and in small quantities as even a decent quantity can make the stock run in for continous circuits.Go for it folks.