Grand opening in India and one “look” away from the top

By Apostolos Manthos

Something big seems to be brewing for Alumil (ALMY) stock in the aluminum industry with quarterly chart analysis giving signs of the start of a strong bullish trend after forming a very dynamic buyer base in the early 2023 area above €2 to €2.08. In a business area where just under 10% of the group’s total shares have already been “acquired”.

Essentially, the next major resistance in the medium-term view is at €3.40 or +40% from yesterday’s close. The intensity surrounding the Buyers Position Volume oscillator provides important points even for the entry of the share price into the volatility range created in 2007, between 3.40 and 4.20 euros.

And it is not only the analysis of the chart that is offered as a sponsor of such a move but also the very good fundamentals of the group. So in 2007, the share hit a historic high of €6.20, when Alumil at that time was close to half of what it is today. For statistical types, the group’s turnover was then 243.7 million euros, while it has now exceeded 402 million euros, a year-on-year difference of 65%. Also, operating profit at that time before interest, tax, depreciation and amortization (EBITDA) was €24.7m, while now as per fiscal year 2022 it has reached unprecedented levels of €56.5m or +128%. At the same time, the net profit at that time was just over 10 million euros, while now it is 27.7 million euros, or a relatively explosive +170.8%.

The group recorded in 2022 the best results in its history, but surprisingly, it reached a third of the value of its shares in 2007. You will tell me other times then but … the market does not retain temporal feelings and does not stand the same from the past and when the time comes it will pass like a cobblestone, from Potentially triple your incredibly cheap P/E (price-to-earnings) ratio of 3.9. The “look” distance of the large mutual fund separates the stock from the top.

Alumil has made great strides in recent years “seeding” with its presence and leading experience in architectural aluminum systems at key points on the world map. Let’s not forget that the group has one of the strongest international sales networks in more than 60 countries around the world with 32 subsidiaries around the world and 12 factories in 6 countries.

So Alumil began to “harvest” the efforts of the construction net that it had watered for years in India.

The wave of income that will come from this huge market is capable of radically changing the profile of group sizes. Strategic planning even speaks of a tenfold increase in the volume of sales from the respective region, although due to the huge prospects seen in this country the prospects may become more explosive. Already the group, which sees the huge number of construction project budget, of which a very large proportion will have European specifications, is making expansionary development steps. He proceeded to rent a new large warehouse while he was concentrated in two states now he spread all over India.

Characteristic of the chaotic boom this market has to offer is the award of Alumil’s latest project for 25,000 apartments in the towers in Mumbai. After all, he did something similar at the iconic “Jayabheri The Peak” in Hyderabad, India, which consists of 3 towers of 29 floors each, two of which are connected by an airlift.

However, Alumil’s big advantage is that it’s “green” aluminum with a much smaller carbon footprint. Alumil is the first company in Greece, and one of the few worldwide, to be certified “OK Recycled” by TÜV AUSTRIA for producing raw materials from 60% recycled aluminum used in all forms of its architectural systems.

At a time when environmental risks are more important than ever and a ‘green’ future dictates the presence of ‘green’ recycled aluminum in large new constructions as EU environmental legislation tightens and consumers turn to eco-friendly products, realizing how profitable the products they produce can be Alumil Group and its availability in the coming years.

* Apostolos Manthos is responsible for technical analysis and investment strategy