Sunday, August 09, 2015
SML ISUZU Ltd 881 Market Cap 1282 Cr; EPS 21
P/E 42x, BV ~ 210; P/BV 4.2 x
Cash per share 55,
SML Virtually Debt Free Co.
• SML is India’s third largest manufacturer of light commercial vehicles such as trucks, buses and special vehicles
• It is the first company to manufacture and supply state of art fully built buses, ambulances and customized vehicles
• The company has a strong market position in the school bus and executive coach passenger carrier segment
• Presently, it has a market share of 7.5% in the commercial vehicles segment and aims to take it to 15% over the next 3 years.
• With a production capacity of 20,000 units per annum at its Punjab plant, the company was planning to ramp it up. Capex plan 220 Cr to be implemented in next 3 years
• While Sumitomo Corporation, Japan, and Isuzu Motors, Japan, hold 44% and 15% shareholding respectively has a multinational management prospects are bright
• SML has recently expanded its product portfolio by introducing new models in the intermediate commercial vehicles and the bus segment that is likely to expand its addressable market size and provide access to new customer groups such as State Transport Undertaking