Tinplate

This Tata group company had been stuck in a groove for some time now. And then the announcement from Tata Steel pushed it strongly into the green. In Q4FY12, Tata Steel made an open offer for buying back up to 1.46 million shares in company for Rs.60/share for a total of about Rs.87.92 crore. Post this buy back, Tata Steel's stake in Tinplate has gone up to 73.44%.

This company is the largest domestic producer of tin mill products with a 40% market share. It exports 20-25% of the production to can makers in SE Asia, Middle East and some parts of Europe. After a YoY 80% fall in net profit in Q1FY13 at Rs.1.48 crore, the company did very well in Q2FY13, showing a jaw drpping 1014.3% rise at Rs.7.02 crore (YoY)  and this was on a 17% rise in net sales at Rs.201 crore. on 16.9% growth in net sales to Rs 201.21 crore. QoQ, the OPM has come down from 16.02% to 15.48% , mainly on the back of higher operating expenses. But a marginally lower interest outgo and lower tax, helped its NPM grow to 3.45% from 0.89%.  Its interest outgo is pretty steep. Thanks to the open offer, at least there was an exit option for shareholders at higher price but since then, it remains range bound at current levels.