Shetron Ltd ....... Buy for long term CMP 16.70

Shetron is a Bangalore based company. This company caters primarily to two business segments food and dry battery jackets. This company has got two manufacturing plants, which are located at Bangalore and other on Mumbai and Nasik highway. In the food segment this company manufactures metal cans and supplies these cans to foods, dairy products, soups and beverages companies. In the dry battery cell-jackets this company claims to be the largest manufacturer of cell-jackets in the entire South East Asian region. This company supplies to almost all battery manufacturers including Eveready, Novino, Nippo, Toshiba and Fuji.As far as the potential of the business is concerned off late we are seeing a change in the retailing pattern from the neighbourhood stores the focus is now on setting up big retail stores and supermarkets. This will give a big push to the packaging of the product and to the food processing and ready to eat foods which are now been sold in much higher quantities as compared to earlier and the growth in the user segment will help the company grow its business since it supplies a major part of its revenues from the food processing industry.The management is projecting sales revenues of Rs 500 crore within 3-4 years, so one has a company which is trading at a reasonable valuation as of now which has done its financial restructuring few years ago where the potential of the business seems to be good and the fourth thing is that even if we discount the managements estimates by 20-30% it will still mean a growth of 400% from the current levels in the next 3-4 years. CMP 16.70