Dear Members,

We would like to share with you an interesting investment opportunity from the Building solutions space for the Alpha stock recommendation for the month of Oct’11.

Note: Please make sure that you buy the stock only in the specified range and follow the Portfolio allocation and Profit booking strategy diligently (Refer Page #5 for the same).

At Katalyst Wealth, we don’t rule out a possibility of a downside of 10-15% (we can’t predict and therefore never attempt to catch bottoms) and would therefore suggest only serious long term investors to consider investing in the stock.

Everest Industries Ltd (NSE Code – EVERESTIND)

Everest Industries Ltd (EIL) was founded in 1934 and is one of India’s fastest growing building solutions company. EIL has an exhaustive product portfolio of Ceilings, Walls, Flooring, Cladding, Doors, Roofing and Pre-Engineered Steel Buildings for the Industrial, Commercial and Residential sectors.

Everest Industries – Content Index

Everest Industries – An Introduction

  1. Complete Building Solutions company
  2. Investment Snapshot
  3. Rise from the ashes
  4. Key Investment Highlights

Everest Industries  Business & Industry Overview

  1. Revenue Streams
  2. Margins to stabilize around 6% NPM by FY 2014
  3. Building Products Division
    • Capacity Build up and utilization
    • Volume Driven business
    • Roofing Industry overview
    • Boards and Panels industry overview
    • Asbestos and misconceptions
  4. Pre-engineered Steel buildings division
    • Strong order book
    • Lack of Pricing Power
    • Industry overview
  5. Marketing & Distribution network
  6. Shareholding Pattern Some well known investors
  7. Directors Profile

Everest Industries Ltd  Financials

Concerns

Conclusion

Everest Industries  Key Investment Highlights?

Improving demand scenario: The government is targeting a sustained economic growth of over 8% this year. This growth would include a 4% growth in the agricultural sector, 10.30% in industrial, 11% in construction and 9.60% in the services sector. EIL operates in these key sectors and will benefit from the anticipated thrust by the government. The demand for EIL Building Products is strong in rural, commercial and industrial sectors.

Demand for pre-engineered buildings (PEB) and ready-to-use building products is growing swiftly for faster construction and efficient project management. Manufacturing industries like automobile, power, textiles, engineering goods and services like logistics, warehousing and infrastructure are large users of PEBs and their rapid growth has a positive impact on Everest Industries Ltd. Improved economic scenario and revival in industrial activities shows great potential for PEB industry in India.

Government Initiatives: Increased expenditure on rural and infrastructure development with an aim to provide adequate shelter to the rural poor, the Government of India, has introduced programs like Indira Awas Yojna, Golden Jubilee Rural Housing Finance Scheme, Pradhan Mantri Adarsh Gram Yojna, Productive Housing in Rural Area and Rural Housing Fund etc, are rapidly expanding the demand for building products. Government thrust on developing backward areas will lead to an increase in construction of schools, housing and hospitals which is the positive note for the Everest Industries Ltd in the rural roofing sector………(more details in the report)

 

Best Regards,
Ekansh Mittal
http://www.katalystwealth.com/
B-47, 1st Floor, Dayanand Colony, Lajpat Nagar  IV, New Delhi 110024

Ph.: 011-41730606, Mob: +91-9818866676
Email: info@katalystwealth.com