Innoventive Industries - Potential MultiBagger

CMP: 116

Innoventive Industries Ltd. manufactures steel tube, sheet and vehicle products. The Company produces welded steel tubes used in automobiles, boilers, appliances, furniture, and general engineering, steel sheets and strips used in automobiles, boilers and general engineering, and pressed and welded components for two and three-wheeled vehicles.

Innoventive Industries is a budding small-cap with good potentials to become a strong mid-cap over time. It trades at a P/E of less than 10. It runs at a debt of 260 Crores with 43 Crores cash in hand. Revenues have picked up from 274 Crores to 649 Crores in the last 5 years. Profits have surged from 3 Crores to 71 Crores over the last 5 years. NPM has surged from 1% to nearly 11% over the last 5 years. Buy and hold for long term gains.

Innoventive Industries has been granted patent for its for its Cold Pilgering process which is employed by the company to manufacture CEW tubes. This process has reduced the energy consumption, materials wastage and labour cost significantly compared to the conventional draw bench process, thereby improving the margins. The patent granted for this technology is valid over a period of 20 years with effect 24 April 2009.

The board has communicated the follOwing to the BSE on 07.08.2012:
1. The Board has appointed Mr. K. V. Ramarathnam as an Additional / Whole-time Director of the Company with immediate effect subject to necessary approvals.

2. The Board has appointed Ms. Bhagyam Ramani as an Additional / Independent Director of the Company with immediate effect subject to necessary approvals.