Stock Watch - Nitin Fire Protection

Nitin Fire Protection Industries Ltd. is a leading fire protection, a safety, securities and Intelligent Building Management system, High Pressure Seamless Cylinder and Refuelling systems company in India. Nitin Fire operates in two business segments — fire protection, safety and security systems, and high-pressure seamless cylinders.

In the fire protection business segment, it is an end-to-end solutions provider with capabilities in manufacturing, designing, commissioning and maintenance.Further, its client base, which consists of companies such as ONGC, Reliance Industries, Credit Suisse and Nokia, also lends more visibility to the segment's earnings.

NFPIL's competitor Everest Kanto Cylinder - EKC continues to hold more than 75% market share in the Indian CNG cylinder market and about 10% globally.
Nitin Fire continues to ramp up its cylinder manufacturing operations at the Vizag SEZ. Expects capacity at the plant to double to 500,000/year by 1QFY2010E and foresee utilization levels improving from about 51% in FY2009E to about 60% in FY2011E. Lower steel prices will also benefit Nitin Fire.

Nitin Fire is expected to report an EPS of Rs 27 and Rs 32 for FY09 and FY10 respectively. Investors with long term view and risk appetite for small caps can BUY the stock which can give good returns from current levels.