DISA INDIA

Cmp-4911

Dansk Industri Syndikat A/S is a completely Debt free company is a subsidiary of Dansk Industri Syndikat A/S is a 119 Years old Cophenhagen, Denmark based Disa A/S Group. Disa India is engaged in manufacturing of foundry machinery like moulding plants, sand plants and shot blasting machines.

Established in 1984 as a as BMD Industries with technical and financial participation from BMD, Germany; Vulcan Laval, Germany and KSIIDC DISA develops and manufactures a complete range of metal casting and moulding equipment, services and production solutions for the ferrous and non-ferrous foundry industries. DISA has the broadest industry offer to support our customers with their current moulding process through our technical expertise, parts and services and guidance. DISA supports customer for changes they wish to make from creating casts manually to horizontal moulding or vertical moulding – since company has moulding machines for all requirements.  DISA’s moulding product range comprises of vertical such as-: (DISAMATIC), match plate (DISA MATCH) and horizontal (DISA FLEX). 

The company mainly caters to ferrous casting industries, which are used in heavy commercial vehicles and tractors, by providing complete foundry machines and solutions. Wheelabrator division provides shot blasting machines for surface cleaning of castings produced at a foundry.

The company also provides completely integrated foundry lines which include complete sand plants, conveyor systems, cooling drums, cleaning solutions and digital software to access foundry data.

What is a Moulding Machine?

Moulding technology choice generally comes down to size and geometrical complexity of the part being created versus the desired production volume.

Disa Group has more than 68 Subsidiaries all over the world.

Parent History-:

DISA was founded in 1900 for production of light machine guns. Company was a defence manufacturer most notable for producing the Madsen machine gun and Madsen M-50.

Later on DISA produced a variety of products like: sewing machines, refrigerators, tractors, petrol pumps, motorcycles & electronic devices. Later Norican Group acquired majority of control in LMCS as a result 3 of leading names in aluminium parts formation StrikoWestofen, ItalPresse and Gauss come under the umbrella of Norman Group.

Norican Group is the world’s leading provider of technology and services to improve metallic parts. Currently the offer includes all forms of parts formation (horizontal, matchplate & vertical moulding) and surface preparation technologies (airblast, wheelblast and mass finishing). Its core branded technology platforms are DISA and Wheelabrator.

Norman Group through its subsidiaries provides various services such as -:

Italpresse Gauss

Complete, integrated light alloy casting solutions, including machines and automatic work cells for high-pressure, low-pressure and gravity die casting, with specialist expertise in supplying work cells for the production of complex automotive castings. 

StrikoWestofen

High-end melting and dosing technology for the global light metal casting industry, including StrikoMelter melting furnaces as well as Westomat dosing furnaces. 

Wheelabrator

Surface preparation technology, spanning both wheel and air blast equipment, parts and services, as well as vibratory finishing solutions and subcontract shot peening services. 

Norican Group also has a specialized digital division which helps in Connecting equipments and setting up a standardized IoT infrastructure to securely collect, store and optimise data, processes and productivity to give better return on investment .

Large global footprint-:

The organization represents over 200 years of expertise and experience, and employs about 2700 people in 50 countries over 5 continents, with a customer base of more than 10,000 companies in 100 countries. The major operations are in Canada, China, Czech Republic, Denmark, France, Germany, India, Poland, Switzerland, UK and USA. 

Financial Performance-:

Overall performance of your Company for the financial year 2018-19 improved significantly with 23.5% growth in revenue from operations and 71.1% growth in profit after tax as compared to the previous financial year 2017-18.

• Compounded Sales Growth over 3 and 5 year period for the company stands at 7% and 19% respectively.
• Compounded Profit Growth over 3 and 5 year period for the company stands at 8% and 38% respectively.
• Company is 100% debt free.
• Company has Reserves of 135 Cr Rs.
• Company has Cash and Equivalents of approx 100 Cr Rs.
• Company had bought back 56,000 shares in 2016 at the price of 4800Rs.
• Company has solid Return on Capital Employed of 32%.

Key aspects and Future Outlook-:

The Company’s key focus segment of Foundry industry is heavily dependent on the Automotive and Agricultural industrial growth. Low or no growth in these end segments resulted in margin stress for the Company. The Company’s continued focus on the new products, new markets, new customers and wider product portfolio has however helped in offsetting any potential decline in top-line.

• With the global knowhow and the local knowledge on High Pressure Molding machines, Company has a COMPLETE FOUNDRY OFFER for the Indian market. Therefore company has the capability to provide end to end solution for both green field and brown field foundries. 
• The Company has introduced distributors to service the aftermarket requirements. This will help the Company to service the needs of customers faster than before. Company intends to expand this initiative in the FY 2019/20. 
• Company has been leading the industry over last decades and is actively involved to bring in new technologies and products to the Indian market .
• With the integration of Aluminum offerings from the Group, the Company has started to offer the Indian customers on Aluminum foundries as well. These offerings are Aluminum Die Casting Machines from Italpresse and Melting and Dosing furnace from Strokowestofen. These two offerings have strengthened the offer from the Group to the Indian market, and now the Company can provide solutions on both Ferrous and Aluminium foundries. 
• Company has equity share capital of 14,54,205 shares of Rs 10 Fv from which almost 75% share are held by promoters. 
• Two mutual funds Idfc multi cap scheme and Sbi small cap scheme hold 5.29% and 3.94% respectively thus leaving very less number of outstanding shares in the market which may be feasible for small investors however not for large institutional Investors.
• There are very strong chances that company may further BuyBack shares.

DISA INDIA was previously Suggested in DARKHORSESTOCKS on 23rd December 2018 at the Price of 5400 Rs since then the stock was up 20% before falling to current Levels.

Additional Notes to Report-:

• DISAMATIC® – the ultimate choice for high volume, flaskless vertical production of quality castings with unmatched speed of up to 510 moulds per hour.
• DISA MATCH – flaskless matchplate technology for efficient high-quality production of castings in shorter runs with frequent pattern changes.
• DISA FLEX – horizontal flask turn-style moulding machine for foundries wanting a flexible solution for production of high quality, medium and heavy near net shape castings
• DISA ARPA – jolt squeeze technology for smaller foundries requiring flexibility, good quality production of short run castings.
• Digital solutions – to ensure you have the right foundry data to monitor your equipment performance
• Sand plant solutions – a wide range of equipment to cover all stages of the process, such as cleaning, cooling, homogenizing and mixing as well as complete in-line and tower-type sand plants for all throughput capacities.

Vertical moulding technology is predominately suited for high volume, high precision castings. With 1,450 vertical moulding machines installed in the market since the introduction of the DISAMATIC® in 1964, DISA remains the partner of choice for customers throughout the world. This installed base is second to none.

• DISA MATCH match plate moulding machines are typically the preferred option for foundries desiring more flexibility in their offer. These foundries place an emphasis on quick changeover cycles to serve a broad customer base on a make-to-order basis. They compete on speed to market and the ability to produce a wide range of products.
• DISA FLEX horizontal moulding machines tend to be the technology of choice for foundries producing lower volume, larger castings. These foundries often produce large, heavy and geometrically complex parts (boiler elements, engine blocks, gear boxes, etc.) on relatively low volume requirements.