Daily Archives: May 24, 2016

Relaxo Footwears Ltd
Footwear
FV – Rs 1; 52wks H/L –614.55/360; TTQ – 2 K; CMP – Rs 460 (As On May 24 2016; 11:30) ;

Market Cap – Rs 5521 Crs

Standalone Financials and Valuations for Q4 FY16 (Amt in Rs.Crs unless specified)

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

In 2013 there was a stock split from Rs.5 to Rs.1 and on 1/7/2015 the company issues bonus of 1:1 shares held on a face value of Rs.1 each.

The company added 8 stores in Q4 FY16 with a total of 250 retail stores as of 31/3/2016.

The company is aiming for a double-digit growth in the next quarter, with focus on sales transformation and better connection with retailers. http://www.moneycontrol.com/news/results-boardroom/aiming-for-double-digit-growthnext-quarter-relaxo-footwear_6687881.html

On Monday, April 4, 2016, Jwalamukhi Investment Holdings, a unit of WestBridge, purchased 1.87 million equity shares representing 1.55% of total equity of Relaxo Footwears for about Rs 80 crore through block deal on NSE. http://www.business-standard.com/article/markets/footwear-stocks-extend-rally-relaxo-footwear-surges-over-30-in-two-days-116040500196_1.html

VLS Finance sold 1.77 million shares at Rs 425 per share, data shows. VLS Finance (6.71%) and VLS Securities (6.79%) collectively held 13.5% stake in Relaxo Footwears at the end of December 2015 quarter.

This quarter was subdued mainly due to general market slowdown and wage hike in Haryana and statutory bonus ceiling impacted the bottom line. The employee benefit cost rose up by 19.6% at Rs.45.7 Crs.

The company introduced approximately 200 designs last year, spread across categories and brands.

As on 31st March, 2015 the total no of employees of the Company are 4655 against 3980 on 31st March, 2014.

Overview:

• Relaxo Footwears Ltd is engaged in the business of manufacturing and trading footwear and articles.
• The company’s brands include Hawaii, Flite, Sparx, Schoolmate, Elena and Casualz.
• Its sparx range includes sports shoes, Sandals and SFGs range.
• Its Schoolmate brand consists of a range of school shoes for boys and girls. Its Hawaii brand provides slipper.
• Its Flite brand provides women’s footwear.
• Its manufacturing facilities are located at Bahadurgarh, Haryana; Bhiwadi; Rajasthan, and Haridwar, Uttarakhand.

Industry Updates:

95% of the footwear industry in India is driven by domestic sales with approximately 5 % coming from exports.

India is a big market with a lot of potential with a focus for growth. However, the company plans to be relevant in international markets by building their own brand.

Management:

• Ramesh Dua is the Managing Director of the company.
• Susuhil Batra is the CFO of the company.

Major Non-Promoter Holdings:

Standalone Financial Trends (In Rs.Crs):

Genus Power Infrastructure Ltd
Other Electrical Equipment Products
FV – Rs 1; 52wks H/L –62.5/21.75; TTQ – 1.04 Lacs; CMP – Rs 52.65 (As On May 24 2016; 15:30) ;

Market Cap – Rs 1352.09 Crs

Standalone Financials and Valuations for 9Months FY16 (Amt in Rs.Crs unless specified)

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

Overview:

• Genus Power Infrastructures Ltd is an integral part of the US $400 million Kailash group and is engaged in manufacturing/providing metering and metering solutions and power backup.
• The Company also undertakes engineering, construction and contracts on turnkey basis.
• The Company’s metering solutions include a range of electricity meters, such as multi-functional single phase and three phase meters, current transformer (CT)-operated meters, availability based tariff (ABT) and grid meters, distribution transformer (DT) meters, pre-payment meters and smart meters, among others.
• The power back-up systems and solar solutions include uninterruptible power supply (UPS) and inverters, such as home UPS, static UPS, online UPS, high capacity inverters, solar inverters, batteries and solar power packs.
• The engineering construction and contracts division undertakes turnkey power projects, such as sub-station erection up to 420 kilovolts (kV), laying up of transmission and distribution lines, rural electrification, switchyards and network refurbishment.

Genus has installed around 31 million electronic energy meters across the country.

During the year the company has produced around 5.26 million meters and installed around 4.90 million meters.

Management:

• Rajendra Kumar Agarwal – CEO & MD
• Ishwar Chand Agarwal – Chairman

The Equity Capital is @ Rs 25.67 Crs consisting of 256807850 equity Shares of FV Rs 1 currently held as under

None of the Promoter’s Holding is Pledged.

Major Non-Promoter Holdings:

Standalone Financial Trends (In Rs.Crs):

Megasoft Ltd
IT Software Products
FV – Rs 10; 52wks H/L – 14/4; TTQ – 85000; CMP (May 24, 2016) – Rs 9.76;

Market Cap – Rs 43 Crs

Consolidated Financials and Valuations for 9MFY16 (Amt in Rs Crs unless specified)

*As of September 2015

Consolidated Financials and Valuations for 15 Months ended FY15 (Amt in Rs Crs unless specified)

• The company lost its biggest customer contract from Q3 of 2013, resulted in lower revenues and EBITDA in the FY15.
• The share price has moved up by 45.67% in the last two months from Rs 6.7 (24/3/2016) to Rs 9.76 (24/5/2016). However, the stock has breached Lower Circuit three times in the last one week.
• Company’s top five clients contribute to more than 50% of the revenues.

Recent Updates

• Megasoft was awarded a patent in Near Field Communication (NFC) technology in July 2015. The invention relates to a smart integration of dual architecture contactless SIM into mobile devices and describes the method of efficiently performing various financial transactions. The patent was filed in February 2010 and was awarded by the US Patent and Trademark Office in July this year.

Near field communication (NFC) is a set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a Smartphone, to establish communication by bringing them within 4 cm (2 in) of each other ~ Wikipedia

• In June 2015, the company was awarded patent pertaining to the method for performing authentication and service translation for Mobile Virtual Network Operators (MVNOs). The patented technology is at the core of the company’s XIUS Mobile Services Platform (MSP) and has been granted by the US Patent and Trademark Office.

A mobile virtual network operator (MVNO), or mobile other licensed operator (MOLO), is a wireless communications services provider that does not own the wireless network infrastructure over which the MVNO provides services to its customers. An MVNO enters into a business agreement with a mobile network operator to obtain bulk access to network services at wholesale rates, and then sets retail prices independently. An MVNO may use its own customer service, billing support systems, marketing, and sales personnel, or it could employ the services of a mobile virtual network enabler (MVNE) ~ Wikipedia

Bulk Deals

Overview:

• The Company is principally engaged in computer programming, consultancy and related activities. It was established in 1994. It operates in two key technology segments ~ Core network infrastructure and mobile payments.
• The Company focuses on the telecom sector through its XIUS brand.
• Through XIUS, the Company offers personalized and specialized services, including computer software design, computer systems analysis and systems integration, to bring solutions to its clients.
• With Headquarters in the USA, XIUS offers solutions in the areas of mobile infrastructure and services, and mobile banking and payments.
• Megasoft has offices in the US, Singapore, Malaysia and in Hyderabad & Chennai in India.
• The company has filed 120 patents, with 35 awarded to date.
• XIUS Infrastructure solutions process and manage in excess of 350 million calls a day and the mobile payments solutions manage over $US 1 billion worth of payment transactions monthly.
• The company has received the title and has completed the registration formalities on May 23, 2015 for lands situated at Madhapur (0.75 acres) and Nanakramaguda, Hyderabad (acquired through amalgamation of VisualSoft Technologies Limited in 2006) allotted by TSIIC (previously APMC).
• Out of 15.61 acres originally allotted at Nanakramguda, Hyderabad, as per the directions of Government of Telangana the Company surrendered an area of 7.29 acres and retained the balance land. The said land is located at Nanak Ram Guda abutting Hyderabad Financial District, which has become a centre for the back office operations of several premier Indian and global financial institutions. ~ Megasoft parts with land for Google campus
• The company has started investing in new products ~ 4G LTE, NFV (Network Function Virtualisation), Predictive Analytics, Mobile based Payments Bank etc.

Management:

• Mr  G. V  Kumar is the Managing Director & Compliance Officer

None of the promoter’s holding is pledged

Consolidated Financial Trends ~ Amt in Rs Crs

• *Certain advances made by the wholly owned subsidiary company prior to 2007 have been set-off to retained earnings by that wholly owned subsidiary.
• The Company lost its prepaid system contract with its largest customer by the end of 2011. The full year effect of this was felt in 2012, which resulted in a 22% decline in the revenues in FY 12 and further decline of 25% in revenues in FY 13.