Lower GST on PVC sheets a boost for Dhabriya Poly

MUMBAI: Dhabriya Polywood, a manufacturer of UPVC and PVC doors and windows, is expected to be a major beneficiary of the GST(Goods and Services Tax) since the rate applicable on PVC sheets for doors and windows is 18% compared with 28% in case of aluminium sheets.
The Jaipur-based company has close to 20 per cent market share in the organised PVC and UPVC doors and windows market.

It has three plants in Jaipur and two in Coimbatore. Utilisation at these plants is 45-55 per cent. It will be setting up another plant in Bengaluru which will be commissioned by the end of 2017.

Analysts expect the company to deliver 30 per cent sales growth and 50 per cent earnings growth between FY17 and FY20. Operating margin before depreciation (EBIDTA margin) in FY17 improved to 14.9 per cent from 10.2 per cent in FY13 and is expected to exceed 20 per cent by FY20.



The optimistic projections are based on the company's introduction of artificial Italian marble under the brand Dstona.

On Monday shares of Dhabriya Polywood closed 4 per cent higher than the previous day's close at Rs 137.6. At this price, they are available at 13 times and one time its expected FY18 earnings and sales respectively .