SIMPLEX CASTINGS LTD Visit us at money.umakant.info

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					SIMPLEX CASTINGS LTD-Value Buy BSE: 513472; CMP Rs 80 Investment Argument: -Strong Earnings, Low PE -Core Focus Steel Industry and Railways -Recent order wins include one from SAIL in a joint bid with Hyundai of Korea -Key supplier of coco-buggies to Indian Railways for the new generation of high speed rail bogies. -Small Equity Base -Consistent Dividend Payment Record of Rs 2 per share per annum Simplex Castings is part of 70 years old Simplex Group, which is a Leading manufacturer of engineering castings in various grades in cast, machined and assembled condition for core industrial sectors like Steel, Power, Railways, Mining, Material Handling, Pumps & Valves, Cement, Sugar, Petroleum, Defense and other specialized areas. Simplex Castings Ltd is the first Indian company to bring mini blast furnace concept in India, the first Indian Company to introduce Japanese sintering technology and has reputed image in global market. World leaders such as Nippon Steel use Simplex made Ladles. As an equipment builder, Simplex has a prestigious position in heavy industries as a technology supplier and turnkey contractor for undertaking large projects in core sectors like Steel, Power, Railways, Mining, Material Handling, Pumps & Valves, Cement, Sugar and Petroleum etc. The company has started with small projects in FY07 and is now participating into high value, high margin projects being bid by Simplex Group. Simplex Castings Ltd will receive project work of Rs. 180 crores in case Simplex Group wins an order of Rs. 600 crores from a leading fully integrated steel manufacturer, where it is favorably placed. The steel manufacturer is expected to award the order to the successful bidder next month. Background Simplex group was incorporated in1940's as Simplex Engineering & Foundry Works Ltd by the late Mr. Bhanji Monji Shah to manufacture agricultural implements, steel structures and castings. The Group has six plants situated in and around Bhilai and Madhya Pradesh. With multifaceted facilities under one roof, Simplex Group has acquired a prestigious position in heavy industries as an equipment builder, technology supplier and turnkey contractor for undertaking large projects.

The group is backed by 3000 experienced and professional work force comprising of highly skilled workmen and engineers supported by 350 most sophisticated machine tools meeting the customers’ requirement in terms of quality, quantity and delivery. The group is also one of the leading exporters of engineering equipment and castings. Simplex Castings Ltd is a leading manufacturer of engineering - castings in various grades in cast, machined and assembled condition for core industrial sectors. The 1990's marked a quantum jump to establish facilities for fabrication, Castings, forgings and machine shops with in-house design and engineering facilities. Prestigious turnkey projects were secured during this period. Simplex casting started exporting products to USA, Japan, CIS Countries, Australia, Egypt, etc thus creating a niche in the quality conscious international market. Simplex castings Ltd is well set to record high growth in Sales and Net Profit due to the buoyant of these user industries. The company is also one of the leading exporters of engineering equipment and castings. Business A leading manufacturer of engineering castings in various grades in cast machined and assembled condition for core industrial sectors; Simplex Castings Ltd has two major units, one heavy Grey Iron Foundry and other heavy Steel Foundry. To balance the facilities, both the units have been equipped with machine molding lines. The foundries have in-house facilities for stress relieving, normalizing, quenching, etc. Grey Iron Foundry The Grey Iron Foundry is equipped to manufacture engineering castings weighing up to 30 tonnes single piece. Special alloy cast iron castings in heat-resistant, acid resistant, Hichrome and Ni-resist materials are also cast in the foundry. Steel Foundry The Steel Foundry is equipped to manufacture engineering steel castings weighing up to 17 tonnes single piece cast weight. This foundry can also produce cast steel castings like slag pot weighing up to 22 tonnes single piece. The foundries and the group company Simplex Engineering & Foundry Works Ltd are equipped with sophisticated machine tools comprising of Horizontal & Vertical Boring Machines, Milling Machines, CNC Lathes, Radial Drilling Machines, Plano Millers and Tool Planners. To match the exact machining requirement of the products, the castings are also delivered in proof machined as well as in finish-machined condition. The products are accepted by inspection agencies such as LLOYDS, RITES, RDSO, SGS, BUREAU VERITAS and other such international agencies.


				
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