Thursday, July 19, 2007

SHETRON LIMITED

Shetron is one of the leading manufacturers of metal cans for the food and dry cell battery jackets/components.The company is expected to be a key beneficiary for the growing global demand for packaged foods.The company has a dominant 85% market share in Dry cell battery jackets.The company is focussing on increasing its export market for metal cans for food packaging.The dry cell battery jackets is slowing gaining compared to paper jackets as this is prone to leakages etc.
The company already exports to leading players in US,Europe and Africa.The company is promoted by Diwakar Shetty and is in existence for the last 20 years.The company has two plants-one in Nashik and one in Bangalore.The company is incurring a capital expenditure of over Rs.100 crores to increase it capacity.The company has paid dividend consistently over the years and is well poised to reap the benefits of growing demand for its products.
Current market price is around Rs.62 and a investment may be made with a outlook of 2 years with a price target of Rs.200 in that time.

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