TAKING INDIA INTO THE CARBON COMPOSITE AGE Dr. APJ Abdul Kalam inaugurated India's first Carbon fiber plant for Kemrock Industries and Exports Limited (Kemrock). The fact that the chief architect of India's defense technologies endorsed the facility lends tonnes of credibility to a company that is about to indigenise a product with immense potential. With the recent announcement of a JV with Hindustan Aeronautics, the excitement has already begun for action to unfold. We like Kemrock for its sound fundamentals and a compelling growth story, which prompt us to focus on the long-term horizon.

Foray into the niche carbon fiber business

Presence across the value chain and a diversified clientele

Expansion phase over, the consolidation phase begins

RECOMMENDATION Kemrock stands at an inflection point of exponential growth following FY12E. We believe that current tie-ups/ certifications, vertical integration and an expanded product portfolio would translate into robust profitability going forward. Further, indigenous production of Carbon fibre coupled with the exponential demand should be the next growth driver for Kemrock. We are singularly positive on the stock and recommend a BUY with a long-term view.