Monthly Archives: December 2015

Subros Ltd
Auto Parts & Equipment
FV – Rs 2; 52wks H/L –113.8/51; TTQ – 63 K; CMP – Rs 109(As On December 22nd 2015; ) ;

Market Cap – Rs 657 Crs                        

Standalone Financials and Valuations for H1 FY16 (Amt in Rs.Crs unless specified)

Consolidated Financials and Valuations for FY15 (Amt in Rs Crs unless specified)

Overview:

Subros Limited is a manufacturer of thermal products for automotive applications in India. The Company manufactures compressors, heating, ventilation and air conditioning (HVACs), piping and heat exchangers to suit various vehicle configurations. The Company’s product range spans across auto air-conditioning and engine cooling systems for passenger, as well as commercial vehicles. The Company provides a range of bus air conditioners and transport refrigeration solutions. The Company’s air conditioners range from 4 kilowatt to 36 kilowatt capacity suitable for ambulances and buses of 4 meters to 12 meters. The Company’s transport refrigeration solutions are suitable for storage volume up to 50 cubic meters. The Company has developed import substitute for driver cabin air conditioning for diesel locomotives of railway engines.

Management:

• Mr. Ramesh Suri – Chairman
• Ms. Shradha Suri – MD

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs.Crs) :

Geometric Ltd
IT Consulting & Software
FV – Rs 2; 52wks H/L – 207/101; TTQ – 69000; CMP (December 18, 2015)– Rs 175.5;

Market Cap – Rs 1138 Crs

Consolidated Financials and Valuations for H1FY16 (Amt in Rs.Crs unless specified)

*Virtually debt free.

Consolidated Financials and Valuations for FY15 (Amt in Rs.Crs unless specified)

Key Updates:

• Launched a next generation collaboration solution, Geometric EDGE® to enable design and engineering data exchange between OEMs, partners, and joint ventures for global engineering.
• Alliance with PDTec, a leading provider of software and services for enterprise wide collaboration in product development.
• Signed a multi-million multi-year PLM engagement with a leading Oil & Gas technology company.
• Entered into a contract for next generation CAx solution for a manufacturer of orthodontic solutions in North America.
• Won a manufacturing engineering deal with a key robotics and factory automation tools manufacturer.
• Awarded a PLM services project with a leading Aerospace player in Europe.
• Signed an engineering services project with a leading North American Automotive OEM.
• The order book comprises of USD 12.14 Million as of Q2 16.

Overview:
Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services, Product Lifecycle Management (PLM) solutions, Embedded System solutions, and Digital Technology solutions enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle. Listed on the Bombay and National stock exchanges in India, the company recorded consolidated revenues of Rupees 11.05 billion (US Dollars 180.61 million) for the year ended March 2015. It employs over 4800 people across 13 global delivery locations in the US, France, Germany, Romania, India, and China. Geometric has been assessed at Maturity Level 3 for CMMI 1.3- Development and CMMI 1.3-Services for its Software and Engineering Services business units and is ISO 9001:2008 certified for engineering operations. The company’s operations are also ISO 27001:2005 certified

Bulk Deals:

Management:

• Manu Parpia – MD & CEO
• Shashank Patkar – CFO

Shareholding Pattern as on September 30, 2015
The Equity Capital is @ Rs. 12.89 Crs consisting of 64667646 Equity Shares of FV Rs 2 currently held 

None of the promoters’ holding is pledged

Major Non-Promoter Holdings:

Consolidated Financial Trend ~ Amt in Rs. Crs

Kirloskar Pneumatic Co Ltd
Capital Goods Equipment Manufacturer
FV – Rs 10; 52wks H/L –730/434; TTQ – 1372; CMP (Dec 16, 2015) –Rs 690.75; Market Cap – Rs 880 Crs

Standalone Financials and Valuations for H1FY16 (Amt in Rs Crs unless specified)

Financials and Valuations for FY15 (Amt in Rs Crs unless specified)

The share price of Kirloskar Pneumatic Co Ltd has moved up by 42% in last two months from Rs 484.8 (16/10/2015) to Rs 690.75 (16/12/2015).

The company has no long term debt.

Pneumatic Holdings Ltd has become the holding company of Kirloskar Pneumatic Company Ltd from September 2015 onwards.

The company attributes decline in the revenue to lack of investments in major sectors such as Oil & Gas, Power, Steel, Cement, Railways and Defence.

The company had bagged and executed significant projects during the period 2010-13. This was the time when oil and gas sector went in for modernization of the facilities and capacity additions. However since 2013 there has not been any significant investment in this sector by both the Government as well private sector. CNG stations have not grown in the recent past due to infrastructure issues and policy guidelines. Coupled with this oil and gas prices globally went down.

The company believes FY 16 to be a year of a transition for Oil & Gas sector. In order to de-risk this challenge of growth, the company has set up an International Business Division. The company has been approved by major consultants and contractors in Middle East and South East Asia. The Company’s management is overall positive on this development, “A team of sales and marketing is travelling to the region and promoting KPCL capabilities. Cold chain market is expected to grow at 10% annually. However implementation of government programmes for developing this market will have to be watched carefully. Your company, with its extensive distribution network and delivery process is confident of seizing the opportunity as and when they appear. Industrial markets will see upturn in next two to three years. Company has invested into developing new technology products. This will offer a competitive edge to regain its leadership position. To reach to smaller markets, company has been expanding dealer network aggressively. This will enable to increase market access and reach. The Government of India is aggressively modernizing defence installations. Your company with strong references expects to play an important role in this “Make in India” programme. However delays in finalizing orders may dampen the demand. Your company expects more international players to start business in India. But your company is strongly poised to take on this competition.”

Overview:
Kirloskar Pneumatic Company Limited is engaged in the manufacture of compressors, gears and gear boxes. It operates in two segments: Compression Systems and Transmission Products.

Its Compression Systems segment offers products, which include air, gas and refrigeration compressors, packages and systems, to the oil and gas, cold chain and other industrial markets. The Company offers refrigeration and gas compression systems for refineries, petrochemical plants and compressed natural gas (CNG) stations; ammonia compressor and packages for the cold store units, dairy units and pharmaceutical plants; air compressors and packages for cement, steel, power, and engineering and other markets, and heating, ventilating and air conditioning systems and air compressor packages for defence sector. Its key customers include ONGC, Reliance, Jindal, BPCL, HPCL and Shell.

The Company’s Transmission Products segment offers traction gears, customized gearboxes and specialized products for Indian Railways, wind power projects and other industrial markets. It serves locomotive manufacturing units of Indian Railways. However demand for railways gears and pinions was lower by 24% in FY 15, due to excessive inventory at locomotive works. KPCL has been manufacturing and selling gearboxes for wind turbines. These gear boxes can be classified into kilowatt class and megawatt class. Company is a leader in kilowatt class gearbox. For last two years new wind farm projects are very few. With a change in the Government policy on wind power projects the demand for gearbox has reduced substantially. Company’s major customers in this sector have gone bankrupt and closed down. This market is not expected to grow in FY 16 as well.

KPCL also serves defence sector with products like HVAC (heating, ventilation, and air conditioning) systems and air compressor packages. This is a tender based business and includes new equipment as well as service business. During the year 2014-15 this business dropped by 28% owing to delays in finalizing orders.

Management:
Mr Rahul C. Kirloskar is the Executive Chairman
Mr Aditya Kowshik is the Managing Director

None of the promoter’s holding is pledged

Consolidated Financial Trends ~ Amt in Rs Crs

Segmental Results ~ Amt in Rs Crs

Alkem Laboratories Limited

Recent Updates:

CCI imposes Rs 74 cr fine on Alkem Labs

IPO momentum: Dr Lal PathLabs, Alkem big hits in the grey market 

Overview

Alkem Labs is a pharmaceutical company which is involved in the development, manufacture and sale of pharmaceutical and neutraceutical products. It was incorporated in 1973 and is based in Maharashtra, India. The pharmaceutical major produces branded generics, generic drugs, active pharmaceutical ingredients and neutraceuticals, which they market in India and 55 other countries internationally, primarily the United States.

It has a diverse portfolio of over 736 brands in India. Company’s most significant therapeutic areas in domestic market are anti-infectives, gastro-intestinal, pain and analgesics, and vitamins, minerals and nutrients.

The Company has 16 manufacturing facilities out of which 14 manufacturing facilities are based in India while two in the United States. Out of 14 Indian units two are R&D facilities whereas both the facilities in the US are R&D. The firm employs a total of 483 scientists in the R&D field. Five of its facilities are USFDA, TGA and UK-MHRA approved. Of the Indian manufacturing facilities, 12 are for manufacturing formulations and two for manufacturing APIs.

As of FY 15, Alkem Labs stands as fifth largest pharmaceutical company in India in terms of domestic sales. In the United States, company has filed 66 abbreviated new drug applications.

It has invested Rs 150-200 Crs for expansion in US facility and in the domestic market. About 75% of its revenue comes from domestic market and remaining 25% from international business with a about 3.6% market share. It currently has a cash of Rs 1500 Crs in its books

Promoters
Mr. Samprada Singh
Mr. Basudeo N. Singh

Consolidated Financial Trend ~ Amt in Rs Crs

Dr. Lal Pathlabs Limited

Recent Updates:

IPO momentum: Dr Lal PathLabs, Alkem big hits in the grey market

Overview:

Dr. Lal PathLabs Limited is a Delhi based provider of diagnostic and related healthcare tests and services in India. Through its nationwide network, company offer patients and healthcare providers a broad range of diagnostic and related healthcare tests and services for use in core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions.
Company has built a national network consisting of its National Reference Laboratory in New Delhi, 171 clinical laboratories, 1554 patient service centers and over 7000 pickup points as of September 30, 2015.
Company’s customers include individual patients, hospitals and other healthcare providers and corporate customers.

It is a debt free company having internal accruals of Rs.235 Crs.

Highlights:

1. Company offers 3,368 diagnostic and related healthcare tests.
2. Company collected 21.8 million samples from 9.9 million patients in FY 2015.
3. Company is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.
4. Its centralized information technology platform fully integrates to it network and is scalable.

Promoters:
        1. Dr. Arvind Lal
2. Dr. Vandana Lal

3. Eskay House

Consolidated Financial Trend ~ Amt in Rs Crs