Chambal Fertilizers & Chemicals Ltd

Chambal Fertilizers & Chemicals Ltd
Fertilizers
FV – Rs 10; 52wks H/L –72.75/50.85; TTQ – 20 K; CMP – Rs 67.50 (As On June 28 2016; 12:30) ;                              

   Market Cap – Rs 2809.15 Crs

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
416.21 2371 708 10527 216.09 57 5.19 13.01 18.42 1.2 57.13 0.59

 

Standalone Financials and Valuations for Q4 FY16


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
416.21 2371 1595 -29.44 57 -0.71 – 18.42 1.2 57.13 0.59

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.3
  2. ROE % – 9.11
  3. Market Cap/Sales – 0.27

Chambal Fertilisers to raise Rs. 1,058 cr from SBI, Axis bank

http://www.thehindubusinessline.com/companies/chambal-fertilisers-to-raise-rs-1058-cr-from-sbi-axis-bank/article8318213.ece

 

Chambal Fertilisers to sell entire shipping business

http://articles.economictimes.indiatimes.com/2015-12-22/news/69237507_1_chambal-fertilisers-fertilisers-chemicals-vessels

 

The Company has entered into an agreement for sale of vessel – Ratna Puja in March, 2016. The ship has been delivered to the buyer in April, 2016. This has resulted into provisioning of loss of Rs.111.99 crore in March, 2016 accounts. The major portion of the loss is attributable to the foreign exchange losses capitalised as part of the cost.

 

Key Updates:

  • The Fertilisers and other Agri-inputs business of the Company contributes 87% of the total revenue, whereas Shipping and Textile contributes the remaining.
  • The Company had to shutdown Gadepan – II plant from February 8, 2015 due to un-favourable policy of the Government of India for production beyond 100% capacity which resulted into lower production of Urea.
  • During the last quarter, the Board of Directors of the Company approved the sale of its textile business to Sutlej Textile & Industries Ltd, as a going concern on slump sale basis.
  • Chambal Fertilisers has consolidated its position in agri-business and diversified into other sectors. Its shipping division under the name India Steamship operates 5 Aframax tankers with a combined capacity of over 5,00,000 DWT.
  • In addition, Chambal Fertilisers has other business interests through its subsidiary in the software sector. It also has a joint venture in Morocco for manufacturing phosphoric acid.- The Company has entered into an agreement for sale of vessel – Ratna Puja in March, 2016. The ship has been delivered to the buyer in April, 2016. This has resulted into provisioning of loss of Rs.111.99 crore in March, 2016 accounts. The major portion of the loss is attributable to the foreign exchange losses capitalised as part of the cost.

 

Overview:

  • Chambal Fertilisers and Chemicals Ltd is one of the largest private sector fertilizer producers in India.
  • Its two hi-tech nitrogenous fertiliser (urea) plants are located at Gadepan in Kota district of Rajasthan. The two plants produce about 2 million MT of Urea per annum.
  • Chambal Fertilisers caters to the need of the farmers in twelve states in northern, eastern, central and western regions of India and is the lead fertiliser supplier in the State of Rajasthan. The Company has a vast marketing network comprising 15 regional offices, 2,000 dealers and 20,000 village level outlets.
  • The Company has donned the mantle of providing all agri-products through a ‘single window’ to enable the farmer to buy all products from one source.
  • The Company dealers provide Urea and other agri-inputs like DAP (Di-Ammonium Phosphate), MOP (Murate of Potash), SSP (Single Super Phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the ‘Uttam’ umbrella brand. Today, the Company has attained a leadership position in the pesticide business in North India.

 

Particulars 2014-15 2013-14 % Inc/Dec
Urea Production (MT in lac) 18.52 19.41 -5
Urea Sales (MT in lac) 18.85 20.96 -10
SSP Production (MT in lac) 1.38 1.03 34
SSP Sales (MT in lac) 1.65 0.64 158

 

  • To promote sustainable farming practices, Chambal has a well-structured farmer advisory programme known as ‘Uttam Bandhan’.
  • To encourage the new age farmer, a website, ‘uttamkrishi.com’, provides information on the weather, suitable cropping techniques and markets in Hindi language.
  • ‘Hello Uttam’ toll-free telephonic helplines have been set up to answer the queries raised by farmers. Unemployed youth from villages are enrolled as ‘Uttam Krishi Salhakars’. They are trained in the latest farming techniques and provide specialised services to farmers.
Sales Of various Products
Products 2014-15 2013-14 % Inc/Dec
Di- Ammonium Phosphate 6.39 6.04 6
Muriate of Potash 1.99 0.42 374
SSP 0.22 0.54 -59
Other fertilizers 0.42 0.6 -30
Pesticides – (Rs. Crs) 302.94 249.67 21
Seeds – (Rs.Crs) 64.97 51.56 26

 

Management:

  • Mr. S. K. Poddar – Chairman
  • Mr. Anil Kapoor  – MD

The Equity Capital is @ Rs 416.21 consisting of 416207852 equity Shares of FV Rs 10 currently held 

8.91% Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No Non – Promoters  No. of shares held % of shares held
1 Reliance Capital Trustee Co Ltd A/C 6702381 1.61
2 DSP Blackrock Micro Cap Fund 6599566 1.59
3 Life Insurance Corporation of India 26589034 6.39

 

The Debt of the company comprises of :

DEBT (Rs. Crs)
Particulars 31-03-2016 31-03-2015
Long term loan – Fertiliser / Textile 33.13 146.12
Long term loan – Urea expansion G3 project 212.63 _
Long term loan – Shipping 795.58 925.07
Working Capital 3775.16 2879.13
Total 4816.5 3950.32

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 416.21 413.95 413.95 416.21 416.21 416.21
Networth 2371 2251 2056 1852 1701 1576
Total Debt 4629 3800 4456 5004 3474 2415
Net Sales 10527 9843 9016 8283 7618 5773
Other Income 44 105 105 81 80 87
PAT 216.09 294.61 244.12 238.52 158.31 240.59
Book Value (Rs) 57 54 50 44 41 38
EPS (Rs) 5.19 7.12 5.90 5.73 3.80 5.78

 

 

 

 

 

 

 

 

 

 

 

FirstSource Solutions Ltd

FirstSource Solutions Ltd
BPO/KPO
FV – Rs 10; 52wks H/L – 48.85/25; TTQ – 14.58 Lakhs; CMP (June 24, 2016) – Rs 44.15;

Market Cap – Rs 2979.3Crs

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

 
Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
Beta
Consolidated 673.3 2425 427 3230 264.9 36 3.9 11.3 23.80 1.23 55.54 1.51
Standalone 673.3 1771 116 874 149.7 26 2.22 19.89 23.80 1.7 55.54 1.51

 

Valuation Parameters 

  1. EV/EBITDA: 8.24
  2. EV/Share: Rs 50
  3. EV/Sale: 1.03
  4. Market Cap/ Sale: 0.92
  5. Debt to Equity: 0.18

Recent Updates

  • In June 2016, Board of Directors of the Company approved grant of 3000000 stock options (each option exercisable into one equity share) to the eligible employees of the Company and its subsidiaries at an exercise price of Rs. 40.90 per share under Employee Stock Option Scheme of the Company.
  • The company’s US Subsidiary, FG US completed acquisition of ISGN’s Business Process Outsourcing Division in May 2016.
  • FY16’s growth was lower than guidance due to Approx. 200 bps due to decline in domestic business and a further 200 bps due to challenges faced in US telecom client business.

Block Deals

Date Exchange Quantity Price (Rs) Value (Rs Crs) Time
07-06-2016 NSE 916470 41.80 3.83 10:35
02-06-2016 BSE 500000 41.25 2.06 12:43
16-03-2016 NSE 504590 34.50 1.74 09:23
15-03-2016 BSE 501951 34.75 1.74 10:33
16-02-2016 NSE 500000 31.10 1.56 11:48
15-09-2015 NSE 690000 27.70 1.91 15:29
26-03-2015 NSE 852054 29.80 2.54 12:03
25-03-2015 NSE 500057 30.25 1.51 10:08

 

IPO

  • The company came out with its IPO in the year 2007 @Rs 64 a share and was promoted by the ICICI Group.
  • The IPO size was Rs 443 Crs with a fresh issue of 60 million shares and an offer for sale of 9.3 million shares by Promoter, ICICI Group.
  • The IPO was oversubscribed 40 times and got listed at Rs 90.

The Company’s share price after making a high of Rs 93 in 2007 made a. All time low of Rs 6 in 2012 and has now climbed to Rs 44 in June 2016.

Year Open High Low Close No. of
Shares		 No. of
Trades		 Total Turnover Deliverable Quantity % Deli. Qty to Traded Qty * Spread
H-L C-O
2007 75.10 93.45 61.55 76.85 23,02,88,286 12,47,036 18,74,85,89,066 6,74,65,449 29.30 31.90 1.75
2008 77.85 89.80 10.60 12.93 13,30,08,749 5,92,767 5,72,69,25,664 4,43,12,660 33.32 79.20 -64.9
2009 13.24 40.00 9.50 34.10 1,15,98,52,250 20,83,617 30,88,92,00,709 29,88,82,922 25.77 30.50 20.86
2010 34.50 37.95 19.40 24.80 23,00,86,900 5,58,955 6,73,30,08,383 8,05,11,810 34.99 18.55 -9.70
2011 25.20 25.95 5.67 6.11 14,80,87,318 3,77,278 2,29,29,01,939 5,48,08,235 37.01 20.28 -19.09
2012 6.15 15.14 6.00 12.07 23,08,16,372 3,92,113 2,55,39,42,588 8,84,26,246 38.31 9.14 5.92
2013 12.10 23.65 9.40 22.10 16,39,20,738 3,80,858 2,61,63,51,106 7,75,12,274 47.29 14.25 10.00
2014 22.20 44.30 21.50 34.65 19,33,68,346 8,27,567 6,23,59,88,190 7,44,28,444 38.49 22.80 12.45
2015 34.60 45.90 25.15 43.20 12,03,45,457 5,02,739 4,07,57,33,038 4,74,05,440 39.39 20.75 8.60
2016 43.60 48.85 28.85 44.15 5,87,73,263 2,24,309 2,32,09,60,881 2,27,02,465 38.63 20.00 0.55

 

Overview

  • Firstsource Solutions Limited is a business process management company.
  • The Company provides business process outsourcing (BPO)/business process management (BPM) services to the healthcare, telecommunications and media, and banking, financial services and insurance (BFSI) industries.
  • The Company has two segments: Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance.
  • The Company’s product portfolio includes First Customer Intelligence, First Chat, First Smartomation, First Resolve and First WF Suite.
  • The Company’s flagship product First Customer Intelligence is a customer interaction analytics solution. First Chat is an online customer engagement product.
  • First Smartomation is a process automation solution. First Resolve is a complaints management solution. First WF Suite is a workforce management solution, which consists of consulting services, managed services and WFM capability development.

Management

  • Mr Sanjiv  Goenka is the Chairman
  • Mr Rajesh Subramaniam is the MD & CEO

The Equity Capital is @Rs 67.33 Crs consisting of 673314912 Equity Shares of FV Rs 10 currently held

None of the promoter’s holding is pledged

Major Non-Promoter % Stake
Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Midcap Fund 1.11
Steinberg India Emerging Opportunities Fund Limited 1.75
Goldman Sachs India Fund Limited 2.75
Jhunjhunwala Rakesh Radheshyam 3.49

 

Consolidated Financial Trends ~ Amt in Rs Crs

  FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 673.3 666.3 659.7 657.8 430.78 430.64
Networth 2425 2089 2091 1714 1430 1423
Long Term Debt 427 414 664 850 926 1404
Total Sales 3230 3035 3106 2819 2255 2055
PAT 265 234 193 147 62 139
EPS (Rs)(adj.) 3.93 3.48 2.86 2.18 0.92 2.06
Book Value (Rs)(adj.) 36 31 31 25 21 21

 

  • In FY15, Company issued 6556583 equity shares of the face value of Rs 10 each on the exercise of stock options under Firstsource Solutions Employee Stock Option Scheme, 2002 (ESOS 2002) and Firstsource Solutions Employee Stock Option Scheme, 2003 (ESOS 2003). Thus, the outstanding, issued, subscribed and paid up capital of the Company increased from 659734876 shares to 666291459 shares of Rs 10 each aggregating to Rs 666.29 Ccrs.
  • In FY14, Company issued 2061125 equity shares of the face value of Rs 10 each on the exercise of stock options under Firstsource Solutions Employee Stock Option Scheme, 2003. Consequently, the outstanding, issued, subscribed and paid up capital of the Company increased from 657673751 shares to 659734876 shares of Rs 10 each aggregating to Rs 659.74 Crs.
  • In FY13, after the issue of 226897444 equity shares to Spen Liq Private Limited on preferential allotment basis, the issued, subscribed and paid-up equity share capital of the Company increased from 430776307 shares to 657673751 shares of Rs 10 each aggregating to Rs 657.67 Crs.
  • In FY12, the Company issued 138125 equity shares of the face value of Rs 10 each on the exercise of stock options under the Employee Stock Option Schemes of the Company. Consequently, the outstanding, issued, subscribed and paid-up equity share capital of the Company increased from 430638182 shares to 430776307 shares of Rs 10 each.

 

Subex @ Rs 11 ~ Five Questions that come to Mind

Subex @ Rs 11  & thus available around par of FV Rs 10 ~ Five Questions that come to mind?

First a bit of background of Subex that got grounded bad from a high of Rs 887 in 2005 to a low of Rs 4 in 2013 before sputtering to show some life crossing Rs 18 in 2015 & again correcting sharply to below Rs 10…. It’s showing some life again with Market Cap moving up to @ Rs 550 crs & huge Volumes .It’s in the Telecom Software Products space providing Business and Operations Support Systems (B/OSS) to Communication Service Providers (CSPs) across the Globe.

If you’re training with me you’d know how to look at it now…. just listing in brief the five points I’m looking at :

  1. Management ~ Its now 48 year old Surjeet Singh, ex CFO of Patni Computers managing Subex.He’s the CEO & MD & has a Cost to Subex Group Package of over Rs 5 crs. Till September 2012 it was the 1992 Founder Subhash Menon who ran the Show and even remained Director till 2015. Menon’s Rise & Fall Story has been covered in some interesting detail by Forbes in November 2012 .Do even read the Readers Feedback to the Forbes Article. The Board also has Sanjeev Aga, ex MD of Aditya Nuvo & Birla ATT (Idea) & Anil Singhvi of Ican & earlier known for his long tenure with Ambuja Cement. He also was an advisor for two years with the Reliance ADA Group & advised on the Enam Axis Bank Merger. The Promoter Category shows a few investors with a very low stake.In fact many  others especially FPIs have much larger stakes & a few were allegedly instrumental in Founder Menon’s ouster because of the Syndesis Acquisition debacle that crippled Subex. The suspicion was that there was more than meets the eye in this US $ 165 m acquisition & it’s funding by US $ 180 m FCCB 1 (See below) ~ Question : What’s Surjeet Singh’s strategy going forward to address the challenges that yet remain & scale the Topline & Bottomline significantly ?     
  2. Networth Jump with FCCB Conversion ~ Networth has jumped from Rs 209 crs at March 31, 2015 to Rs 727 crs at March 31, 2016 as Company revised FCCB III Conversion price downward yet again from Rs 22.79  to Rs 13 on May 14 2015.This attracted near full conversion of the FCCBs taking the Equity from Rs 182.92 crs to Rs 502.81 crs in FY 16…. These FCCBs were the huge Debt overhang in the Balance Sheet.The Book Value thus became Rs 14.46 on March 31,2016 with the Balance Sheet showing very little Debt with just US $ 6.95 m o/s on all FCCBs I ,II & III . The FCCB Story commenced 10 years ago in 2006/7 when 2%  FCCB I for US $ 180 m was issued with Exchange rate fixed at Rs 44.08 & Conversion at Rs 656.20.In 2009/10 a restructuring proposal of FCCB 1 was offered at a 30% discount to Face Value.Those who held US $ 141 m face value FCCB I accepted & were issued 5% interest per annum, payable half yearly US $ 98.7 m FCCB II with exchange rate fixed at Rs 48.17  & Conversion at Rs 80.31.Redemption date was the same at March 9,2012 which RBI extended to July 9,2012.However another restructuring offer was made in June 2012 to FCCB I & II Holders & most (US $ 38m of the 39 m FCCB I o/s & US $ 53.4 m of the 54m FCCB II o/s) accepted it in July 2012 & were issued 5.7% interest per annum payable half yearly FCCB III for US $ 127.72 m with exchange rate fixed at Rs 56.0545 & Conversion Price at Rs 22.79 with maturity date of July  7,2017.On May 14,2015 the Conversion price was reset on these FCCB III to Rs 13  ~ Question : Though the FCCB Mess has been resolved where lies this High Networth & how is it going to be serviced?
  3. Goodwill on Consolidation ~ The Networth lies in the Carrying Values as on March 31,2016 of the Investments of Rs 647.39 crs made in Subex(UK) which contributes nearly all of topline & of Rs 124.96 crs (lower by Rs 54.90 crs) in Subex Americas Inc.Consolidated Accounts throws up these Investments in the Goodwill on Consolidation. Company has,and new auditors, S R Batliboi & Associates(Previous was Deloitte Haskins & Sells) have accepted the continuing Goodwill Value of Rs 670.36 crs for UK & the fresh assessed Rs 97.26 crs for Americas (down by Rs 88.70 crs from the Rs 186.06 crs carried till FY 15). Company views this as fair based on their assessment of operations  & cash flows going forward & even external valuations ~ Question : These are Intangible & carry risk of Impairment going forward & thus are they yet being overstated even now ?
  4. Topline ~ Sales continue to hover in the Rs 320 crs to Rs 360 crs range last four years despite regular annual report noises on the potential of  mobile telephony going forward.Bottomline remains relatively insignificant even as FY 16 generates Rs 50+ crs and an EPS of Rs 1…maybe enough to service stakeholders like Employees & Working Capital Lenders but what about Shareholders~ Question :Even assuming lower Interest Burden with the FCCB Conversions & less risk of Exchange Fluctuations how would such a flat growth topline generate enough bottomline to service the Equity of over Rs 500 crs now?
  5. Subsidiaries Outstandings set off sought from RBI~ Standalone Financials as on March 31,2016 reveal Trade Receivables,net of Doubtful Debt) from Subsidiaries  at Rs 412.73 crs &  Payables at Rs 441.28 crs.Company plans to apply to RBI to allow them to set these off. No Accounting adjustment has been made for these & neither have Auditors qualified their Report on the Standalone Accounts though they have drawn attention to it as an Emphasis of Matter ~ Question : That these have grown so huge on either side over the years without being settled does it signal at least a part being accommodation entries?

Remember how I had analysed & exposed Geodesic in 2012/13 at @ Rs 10 & with huge FCCBs too when many were floating it as multi-bagger potential to cross Rs 100. It dropped to under Rs 2 & has since been suspended from trading         

Over 600 Employees yet believe that Subex will Turnaround under Surjeet Singh… Question is do you as a Potential Investor ….or is the risk a bit too adventurous for your profile…. Subex has little long term debt & is showing a positive bottom line now …. well the FCCB Mess certainly has been cleared up but at the cost of FY 16 creating an additional 32 cr shares which already created a selling momentum after the conversion… some yet may have to be sold off.

This is anybody’s & everybody’s share now with insignificant Promoter Holding…. There are many who jumped in excitedly at Rs 18 last year & saw their Investment halve in quick time on selling pressure created by additional 32 crs created from August 2015, earliest effective conversion date was in this month ,on the FCCB III.Remember these FCCB Holders had already faced 30% Face Value Loss on FCCB II issue  + Exchange Loss from original Rs 44 & then Rs 48 & then Rs 56 when current rate is @ Rs 67 …. and shares converted at Rs 13 would surely have been crying to sell at Rs 18 to recover some loss for the holders!…. Now there are many yet aggressively buying in at Rs 9.50 to Rs 11… Volumes & Price Trends are telling some story…Selling Pressure seems to be ebbing

Anybody interested in acquiring  majority stake in Subex? will cost you under just US $ 45 m or under  Rs 300 crs (@ Rs 67 ex rate)  for a 51% stake & you’ll get a Rs 350 crs topline company with little debt & in profits & servicing  most of the leading Telecom Operators & Communication Service Providers worldwide…and the Book is near Rs 15 with very little equity dilution remaining on account of remaining FCCB conversion…. you of course need to believe the carrying worth of Investments in Subex (UK) & Goodwill on Consolidation shown because of it… you would also need to believe in Surjeet Singh’s exclamation in his statement in the FY 15 Annual Report that it’s Inflection Point & all at Subex are very excited about the road ahead

Would love to have you at my Fundamental Equity Training Workshop…. there’s one scheduled for the full day on Saturday,September 10,2016 in Bangalore where more such case studies will be analysed & debated on Price vs Value… details will come up shortly

Update on evening of June 23, 2016 

Been getting quite a few calls & messages today for this Subex post… let me make it clear… I have merely spelled out the facts & questions that came to my mind especially on the risks … I have not offered any opinion on whether one should buy or hold or sell Subex… that is left to the reader based on his risk profile & conviction & confidence levels… as for Geodesic, I am not comparing the two to spark fear or warning… just that in the past I have raised issues with IT companies that went on to strangle like Geodesic, Cranes, Aftek & Teledata… in Geodesic & Subex there were both FCCB debt overhang + huge amounts due to & from subsidiaries… Subex has cleared the FCCB mess & is planning to set off subsidiaries balances if RBI approves…. my blogposts are not for the purpose of one upmanship or to ridicule… I just put out some fundamentals & risks that I perceive ….. readers can hold a contrary view on the risks…. any downside or upside is for the reader to conclude

Nalwa Sons Investments Ltd

Nalwa Sons Investments Ltd
Investment Holding Company
FV – Rs 10; 52wks H/L – 806/560; TTQ – 6; CMP (June 22, 2016; 2.15 pm) – Rs 621;

Market Cap – Rs 318.96 Crs

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

 
Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
Beta
Consolidated 5.14 339 33 29 18.76 660 36.5 17 41.65 0.94 55.62 1.05
Standalone 5.14 363 – 19 13.76 706 26.77 23.19 41.65 0.88 55.62 1.05

 

  • The auditors have put drawn attention to an Emphasis of matter ~ The Company has made long term investment in a subsidiary company of Rs 61 Crs and in certain other companies of Rs 26 Crs where there is diminution in value of investment.
  • In FY15, the company had made Provisions for Non-Performing Assets (Doubtful) of Rs 16 Crs.
  • Jindals to unwind complex cross-holdings
  • The Company’s stock has very low liquidity
Month Open High Low Close No. of 
Shares		 No. of 
Trades		 Total Turnover Deliverable Quantity % Deli. Qty to Traded Qty * Spread
H-L C-O
Jan 15 755.05 789.95 750.05 755.00 3,549 737 27,07,071 3,114 87.74 39.90 -0.05
Feb 15 755.00 774.00 710.00 710.00 3,439 708 25,41,515 2,406 69.96 64.00 -45.00
Mar 15 710.00 780.00 620.25 654.75 6,255 1,181 42,65,642 4,349 69.53 159.75 -55.25
Apr 15 647.25 694.50 622.00 660.00 2,494 433 16,35,557 1,877 75.26 72.50 12.75
May 15 658.50 699.75 625.00 636.00 1,945 228 12,72,453 1,351 69.46 74.75 -22.50
Jun 15 638.00 668.00 610.00 610.00 3,482 158 21,55,329 2,250 64.62 58.00 -28.00
Jul 15 611.00 650.00 610.00 612.00 3,793 217 23,32,835 3,164 83.42 40.00 1.00
Aug 15 611.00 680.00 600.00 606.25 3,814 155 23,88,176 3,209 84.14 80.00 -4.75
Sep 15 606.00 715.00 600.00 624.00 10,845 545 68,94,275 2,380 21.95 115.00 18.00
Oct 15 624.00 654.00 612.25 632.25 1,623 107 10,21,187 1,507 92.85 41.75 8.25
Nov 15 620.25 780.00 610.00 719.00 32,111 1,731 2,30,04,667 9,289 28.93 170.00 98.75
Dec 15 730.00 806.00 701.00 731.50 11,794 890 89,48,129 7,042 59.71 105.00 1.50
Jan 16 730.00 770.00 621.00 639.25 26,206 1,103 1,77,01,500 6,821 26.03 149.00 -90.75
Feb 16 636.25 641.25 560.00 572.00 5,149 268 30,49,852 4,059 78.83 81.25 -64.25
Mar 16 584.00 661.00 565.25 597.75 52,540 540 3,16,23,709 2,755 5.24 95.75 13.75
Apr 16 615.00 644.00 590.50 600.00 675 64 4,14,476 517 76.59 53.50 -15.00
May 16 601.25 738.00 595.25 618.00 2,768 233 17,66,889 1,614 58.31 142.75 16.75
Jun 16 618.55 638.00 610.10 621.00 1,165 108 7,19,785 806 69.18 27.90 2.45

Source: BSE

Overview:

  • The Company is engaged in the business of investment and financing activities, which include consulting revenue related to investment and finance.
  • The Company is also a non-banking financial company (NBFC).
  • The Company’s products are classified as investments, which include dividend and interest.
  • The Company holds investments in equity shares of steel manufacturing companies of O.P. Jindal group.
  • The Company conducts its operations in domestic and overseas markets.
  • The Company’s subsidiaries include Jindal Steel & Alloys Ltd. (JSAL), Jindal Holdings Ltd. (JHL), Brahmputra Capital & Financial Services Ltd., Massillon Stainless Inc. U.S.A and Jindal Stainless (Mauritius) Ltd. (JSML).

Management:

  • Mr Ratan Jindal is the Vice Chairman and the MD

Shareholding Pattern as on March 31, 2016

  • The Equity Capital is @Rs 5.14 Crs consisting of 5136163 Equity Shares of FV Rs 10 currently held as under
  • None of the promoter’s holding is pledged
Sr No. Major Non-Promoter % Stake
1 Acacia Institutional Partners LP 1.73
2 Acacia Partners LP 1.54
3 IL And FS Trust Co Ltd 3.3
4 Vaishalli Arya 3.76
5 Keswani Haresh 5.62
6 Anil Arya 4.85
7 Ricky Ishwardas Kirpalani 7.86

 

Consolidated Financial Trend ~ Amt in Rs Crs

 Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 5.14 5.14 5.14 5.14 5.14 5.14
Networth 339 323 312 374 353 357
Long Term Debt 33 31 30 27 25 22
Total Sales 29 31 37 31 33 31
PAT 19 12 29 23 -4 26
EPS (Rs) 36.50 23.52 55.45 44.63 -7.08 51.01
Book Value (Rs) 660 628 607 727 687 694

 

Indiabulls Wholesale Services Ltd

Indiabulls Wholesale Services Ltd
Consumer Electronics
FV – Rs 2; 52wks H/L –34.20/8.65; TTQ – 2.33 Lacs; CMP – Rs 28.20 (As On June 13 2016; 11.00);                                  

Market Cap – Rs 143.03 Crs

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
10.14 889 317 310 7.08 175 1.4 20.14 57.54 0.16 30.45

2.02

 

Standalone Financials and Valuations for Q4 FY16


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
10.14 889 123 29.06 175 5.73 4.92 57.54 0.16 30.45

2.02

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.36
  2. ROE % – 0.8
  3. Market Cap/Sales – 0.5

Overview:

  • Indiabulls Wholesale Services Ltd and its subsidiaries are engaged in the business of trading, real estate development and retail business.
  • The Company is also engaged in the business of rendering information technology (IT) consultancy, property maintenance, equipment hiring, and tour and travel services.
  • The Company operates through segments, including Trading, Real estate projects under development, Information technology solutions, Facility maintenance and other related activities, Equipment hiring services and Aviation services.
  • The Company is engaged in the business of wholesale trading of various industrial/consumer products and commodities in select Indian cities.
  • The Company is also engaged in chartering business of aircraft.
  • The Company is developing real estate projects on land situated in Ahmadabad, Gujarat, and Hyderabad, Andhra Pradesh.

 

Management:

  • Mr. Mehul Johnson – Director
  • Mr. Surinder Singh Kadyan  – Whole Time Director
  • Mr. Saurabh Garg – CFO

The Equity Capital is @ Rs 12.66 Crs consisting of 50718493 equity Shares of FV Rs 2 currently held

None Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No Non – Promoters No.of shares held % shares held
1 Anil Bansilal Lodha 1912549 3.77
2 Ashish Damani 508121 1
3 ABL Infrastructure Pvt Ltd 682701 1.35
4 Ashok Mehta 524830 1.03

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12
Equity Paid Up 12.66 12.66 12.63 12.57 12.57
Networth 889 882 869 826 791
Total Debt 417 267 22 32 –
Net Sales 310 208 283 177 90
Other Income 4 1 7 6 6
PAT 7.08 17.75 42.93 41.14 13.7
Book Value (Rs) 140 139 138 131 126
EPS (Rs) 1.1 2.8 6.8 6.5 2.2

 

During 2014-15, additional 156700 no. of equity shares of Rs.10 each were issued.

 

 

 

 

 

 

 

 

 

 

Gokaldas Exports ltd

Gokaldas Exports ltd
Other Apparels & Accessories
FV – Rs 5; 52wks H/L –134.2/40.45; TTQ – 3.23 Lacs; CMP – Rs 117.25 (As On June 13,2016 ; 15.00) ;                         

   Market Cap – Rs 400.95 Crs

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
17.39 216 – 1143 61.34 62 17.63 6.65 23.08 1.89 57.44

0.9

 

Consolidated Financials and Valuations for Q4 FY16


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
17.39 216 318 40.77 62 11.72 10 23.08 1.89 57.44

0.9

 

Valuation Parameters:

  1. Long Term Debt to Equity – Nil
  2. ROE % – 28.4
  3. Market Cap/Sales – 0.35

 

Blackstone sells 10% stake in Gokaldas Exports at huge loss to ICICI Bank.

http://www.vccircle.com/news/textiles/2016/06/10/blackstone-sells-10-stake-gokaldas-exports-huge-loss

 

Order book for Q4FY16 was significantly better driven by penetration into new categories for some existing customers and also aided by unusually high spring summer demand.


The company said it is working towards growing the top-line and improving profitability through various cost optimization initiatives, improvement in efficiency and customer-category portfolio realignment to improve margins.

The company had around 46 factories in 2007 and the factory numbers have come down to 24 as of end of FY16.
In FY16, the company sold one factory to Raymond for Rs 28 crore and the board also approved sale of three other factories in Bengaluru, Hyderabad as well as Mysore.  (http://www.moneycontrol.com/news/stocksnews/trimming-non-core-assets-helps-gokaldas-exports-turnaround_6838861.html

Overview:

  • Gokaldas Exports Ltd (GEL) is one of the leading apparel exporters of India serving large global retailers since its inception in the year 1978.
  • GEL operates from 30units spread across states of Karnataka, Tamil Nadu and Andhra Pradesh and has installed capacity to produce more than2.5 million garments per month.
  • GEL provides employment to 28,000 people.
  • GEL blends its manufacturing expertise with state of the art design capabilities to provide multiproduct offerings; sustained reliability weaved with consistent quality to meet changing demands from customers at right cost: from design to delivery.
  • GEL has a diversified product portfolio across various categories of garments for men, women and children. GEL’s expertise lies in manufacturing outerwear which very few manufacturers in India can match.
  • The principal source of revenue for the Company is from export of garments and related products.
  • The Company’s products include outer wear, mens bottoms, mens tops, womens wear, kids wear, sportswear, denim and formal wear.

 

Bulk Deals:

Date Client Deal Qty Price (Rs.)
10-Jun-16 ICICI Bank Ltd P 3450000 126.2
10-Jun-16 Blackstone FP Capital Partners S 3450000 126.2
02-Jun-16 N.K. SECURITIES P 226972 107.22
02-Jun-16 N.K. SECURITIES S 226972 107.28
01-Jun-16 Arcadia Share & Stock Brokers Pvt.Ltd P 205696 100.96
01-Jun-16 J S L Enterprises P 224750 98.49
01-Jun-16 N. K. Securities P 202443 99.65
01-Jun-16 Arcadia Share & Stock Brokers Pvt.Ltd S 69908 97.75
01-Jun-16 J S L Enterprises S 13500 103.4
01-Jun-16 N. K. Securities S 202853 99.71
31-May-16 BP Fintrade Pvt.Ltd S 214033 86.13
31-May-16 BP Fintrade Pvt.Ltd P 209039 86.05
31-May-16 BP Fintrade Pvt.Ltd P 297153 86.11
31-May-16 BP Fintrade Pvt.Ltd S 281140 86.14
18-Feb-16 Zaki Abbas Nasser P 250000 57.59

 

Management:

  • Mr. Richard B Saldhana – Chairman
  • Mr. P Ramababu – MD
  • Mr. Sumit Keshan – CFO

Subsidiaries: The Company has 13 Subsidiary companies.

The Equity Capital is @ Rs 17.3 Crs consisting of 34789326 equity Shares of FV Rs 5 currently held 

57.44% Of Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No Name of the Shareholder No. of Shares held % of shares held
1 ICICI Bank Ltd 1977963 5.69
2 Shinano Retail Pvt.Ltd 1413513 4.07
3 Ojasvi Trading Pvt.Ltd 867000 2.5
  Total 4258476 12.26

 

Consolidated Financial Trends – Amt in Rs Crs except BV.

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 17.4 17.3 17.2 17.2 17.2 17.2
Networth 216 158.8 123.7 124 227.1 368.3
Total Debt 313 289 309 312 250 308
Net Sales 1143 1090.2 1147.1 989.8 1030.2 1161
Other Income 92 83.9 16 9 6 15
PAT 61.34 34.7 -6.7 -109.4 -132.4 -90.1
Book Value (Rs) 62 46 36 36 66 107
EPS (Rs) 17.63 10 -1.95 -31.8 -38.5 -26.2

 

During 2014-15 the company issued 218332 equity shares of face value Rs.5 each.

The company posted 77% jump in its consolidated net profit at Rs. 61 crore against Rs. 35 crore in FY15.

 

 

 

Man Infraconstruction Ltd

Man Infraconstruction Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L – 50/28.85; TTQ – 1.9 Lakhs; CMP (June 13, 2016) – Rs 41.9;

Market Cap – Rs 1037 Crs

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

 
Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake		 Beta
Consolidated 49.5 605 287 227 13.26 24 0.54 77.22 25.44 1.74 60.25 1.45
Standalone 49.5 623 – 212 37.56 25 1.5 27.8 25.44 1.67 60.25 1.45

 

  • The share price has moved up by 26% in the last three months to Rs 41.9 (13/6/16) from Rs 33.25 (13/3/16).
  • The PAT for Q4 FY16 fell by 87% Q-o-Q (it was actually higher at Rs 7 Crs) because the company had to pay the pending CSR (corporate social responsibility) donation of Rs 2 Crs and make provisions for Rs 4 Crs.
  • The company has no bad debts on the books now.
  • In December 2015, Company’s promoter Mansi Parag Shah sold around 6.5% of her stake in the company for various charity purposes. Shah sold around Rs 1.6 Crs shares, amounting to Rs 74.90 Crs. After the stake sale, Shah’s holding in the company declined to 15.35% from 21.8% earlier.
  • Auditors have put an Emphasis of Matter without qualifying the opinion on the issue of termination letter by Manaj Tollway Private Limited (MTPL), a subsidiary of the company, to Public Works Department, Govt. of Maharashtra (PWD) on March 30, 2015 for terminating the Concession Agreement with respect to the construction road on DBFOT basis due to unresolved matters on land acquisition and forest clearance and has stopped the work. As at March 31, 2016, expenses incurred on construction of Tollway are classified as “Intangible Assets under Development” by MTPL amounted to Rs 129.93 Crs. MTPL has been legally advised that it has a strong case on merits to recover such claims. Man Infraconstruction holds 63.64% stake in MTPL.

Valuation Parameters:

  1. EV/EBITDA: 33.11
  2. EV/Share: Rs 48
  3. EV/Sale: 5.25
  4. Market Cap/ Sale: 4.54
  5. Debt to Equity: 0.47
  6. RoE: 2.19%

Recent Update:

Block Deals:

Date Exchange Quantity Price (Rs) Value (Rs Crs) Time
23-03-2016 BSE 500000 34.60 1.73 10:02
23-02-2016 BSE 520179 31.10 1.62 12:42
04-12-2015 BSE 979390 46.75 4.58 14:06
04-12-2015 NSE 6018745 47.85 28.8 14:20
04-12-2015 NSE 659016 46.50 3.06 14:06
29-01-2015 NSE 563650 43.00 2.42 14:03
29-01-2015 NSE 500000 43.20 2.16 15:06
29-01-2015 BSE 3000000 36.00 10.8 13:03
14-01-2015 NSE 1000494 36.15 3.62 09:29

 

Overview:

  • Man Infraconstruction Ltd is engaged in construction business.
  • The Company provides construction services for Port infrastructure, Residential, Industrial, Commercial and Road Infrastructure Projects.
  • In the road infrastructure sector, the Company provides earthwork, paving, sewerage, storm water drainage, electrification, landscaping and arboriculture.
  • The Company’s major projects include Jawaharlal Nehru Port Trust, Mundra Port, Chennai Port, Vallarpadam Port and the Pipavav Port.
  • It sold half of its stake in Atmosphere Realty Private Ltd (ARPL) in the first half of FY15. Equity holding of the Company in ARPL now stands at 17.5%.

EPC order book stood at Rs 321 Crs as on 30th September, 2015

Real Estate Project Portfolio

Key Projects
Ports Contract Value (Rs Crs)
Nhava Sheva International Container Terminal (NSCIT) 250
Mundra International Container Terminal (MICT) 190
Gateway Terminals of India (GTI) 250
International Container Transshipment Terminal (ICTT) 300

 

Key Projects
Residential Location
Township Project – 6.5 mn sq. ft. consisting of 70 buildings of
7 storey each		 Mahul, Mumbai
Orchid Woods –  3 Towers of 55 storey each; admeasuring 2mn
sq. ft. in size		 Goregaon, Mumbai
Neelkanth Greens –  8 Towers of 27 storey each; admeasuring
1.0mn sq. ft. in size		 Thane, Maharashtra
Tata Housing – 8 Towers with a mix of 17-22 storey buildings
admeasuring 0.9mn sq. ft. in size		 Mulund, Mumbai
Blue Ridge – Project Blue Ridge – 8 residential Towers of
25 storey each; admeasuring 1.7mn sq. ft.		 Pune, Maharashtra
Godrej Anandam – 6 Towers of 20 storey each; admeasuring
1.4mn sq ft. in size		 Nagpur, Maharashtra
Kohinoor City –  8 Towers of 7 storey each; admeasuring
0.3mn sq. ft. in size		 Kurla, Mumbai
Ambrosia – 1 Building of 40 storey admeasuring 0.5mn
sq. ft. in size		 Borivali, Mumbai

 

Key Projects
Commercial Location
Kohinoor City – Commercial Complex, LEED Certified Hospital
Building and School Building, Total Construction size of 1mn Sq. Ft		 Kurla, Mumbai
Mobile Switching Center – Mobile Switching & Data Center having
Basement + Stilt and 5 upper floors for Bharti Airtel,Total Construction size of 60,000 Sq. ft.		 Navi Mumbai
Sports Complex – Sports Complex having modern facilities, Total Construction size of 0.1mn sq. ft. Ulwe, Navi Mumbai
Sharad Pawar International School – School Building with State of the art facilities
having Basement + Ground + 9 Floor, Total Construction size of 0.2 mn Sq. Ft		 Chandivali, Mumbai
Stainless Steel Plant –  15,000 MTPA Stainless Steel Plant for Viraj
Profiles Ltd		 Boisar, Maharashtra
Gigaplex IT Park – IT Park Building for  B. Raheja Group, Total Construction size of 0.5mn sq. ft. Airoli, Navi Mumbai

 

Management:

  • Mr Berjis Desai is the Chairman
  • Mr Parag K. Shah is the MD
Sr No. Major Non-promoters % Stake
1 Vanaja Sundar Iyer 1.01
2 Jhunjhunwala Rakesh Radheshyam 1.21
3 Eden Realtors Private Limited 1.61
4 Reliance Capital Limited 1.62
5 Sa 1 Holding Infrastructure Company P Limited 6.82
6 Suketu Ramesh Shah 1.97

 

Consolidated Financial Trend ~ Amt in Rs Crs

Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Total Sales 227 275 397 447 489 505
PAT 13 47 29 48 54 63
EPS (Rs) 0.54 1.92 1.17 1.93 2.18 2.54
Long Term Debt 287 110 66 – – –
Equity Cap 49.5 49.5 49.5 49.5 49.5 49.5
Net worth 605 637 599 579 538 510
BV (Rs) 24 26 24 23 21.7 20.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balaji Telefilms Ltd

Balaji Telefilms Ltd
Broadcasting & Cable TV
FV – Rs 2; 52wks H/L – 150/64; TTQ – 9629; CMP (June 13, 2016; 1.37 pm) – Rs 110;
Market Cap-Rs 836Crs

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


Equity Capital
Net worth
Long Term Debt
Total  
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
P/BV
Promoter’s
Stake		 Beta
15.19 523.7 – 293 2.81 69 0.37 297.29 1.59 40.92 0.98

 

  • Revenues declined by 16% Y-o-Y on a consolidated basis owing to three shows off air during the quarter. The shows that ended were ‘Meri Aashiqui Tum Se Hi’, ‘Itna Karo Na Mujhe Pyaar’ and ‘Pyar Ko Ho Jane Do’.
  • The Company raised Rs 150 Crs by allotting 10720000 Equity Shares on a preferential basisto Vanderbilt University, GHI LTP LTD, GHI HSP LTD, GHI ERP LTD, Atyant Capital India Fund-I in March 2016. The fund raise was for ALT Digital Media, its wholly owned subsidiary. The Equity capital has thus increased to Rs 15.19 Crs from Rs 13.04 Crs.
  • Balaji Telefilms has over 18 movies in various stages of development has employed capital of Rs 181.22 Crs in the FY16 compared to Rs 83.79 Crs a year ago. In the movie segment, the company reported loss (profit before tax and interest) of Rs 13.41 Crs in FY16 from Rs 6.24 Crs in the earlier year.
  • In FY15, the company had released movies like ‘Main Tera Hero’, ‘Kuku Mathur Ki Jhand Ho Gayi’ and ‘Ek Villian’ while in FY16 it released only one movie.

Valuation Parameters:

  1. EV/EBITDA: 136.5
  2. EV/Share: Rs 108
  3. EV/Sale: 2.8
  4. Market Cap/ Sale: 2.95
  5. Debt to Equity: Nil
  6. RoE: 0.5%

 

Recent Updates:

 

Bulk Deals:

Date Client Transaction Quantity Traded Price (Rs)
06-Aug-2015 BOTHRA FINANCIAL SERVICES BUY 50000 96.35
06-Aug-2015 MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED BUY 485000 100.22
06-Aug-2015 BOTHRA FINANCIAL SERVICES SELL 590000 99.98
06-Aug-2015 MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED SELL 485000 101.38
05-Aug-2015 GEECEE INVESTMENTS LIMITED BUY 332000 87.54
02-Mar-2015 JEWELS ADVISORY SERVICES LLP SELL 400000 65.25
02-Mar-2015 NIMESH ARVIND DOSHI BUY 400000 65.25

 

Overview:

  • Incorporated in the 1994, Balaji Telefilms is a Company promoted by Actor Jeetendra Kapoor and his family.
  • The Company’s segments include:
  • Commissioned Programmes
  • Channels and Sponsored Programmes
  • Commissioned Programmes derive income from sale of television serials whereas Channels and Sponsored Programmes draw income from telecasting of television serials on channels.
  • It has produced over 15000 hours of television content since its inception, including content in Hindi, Tamil, Telegu, Kannada and Malayalam.
  • Its brands include Alt Entertainment brand, which will be used on all content catering to a younger, more urban demographic, across the television, movie, mobile and Internet space; Hoonur, which will be used in the online and mobile space both for the entertainment portal and for user generated content, and ICE covers a specializations like Acting, Cinematography, Direction, Editing, Production, Scriptwriting, Sound and Vfx
  • India’s Television industry is expected to grow at a CAGR of 16.2% over the next five years
  • The company follows a de-risked business model, it pre-sells theatrical and satellite rights.

 

Sr No Film Name Language Star Cast Tentative Release
1 Azhar(Coproduced ) Hindi Emraan Hashmi, Prachi Desai, Lara Datta, & Nargis Fakhri directed by Tony D’Souza Released on May 13, 2016
2 Udta Punjab Hindi Shahid Kapoor, Kareena Kapoor, Alia Bhatt & Diljeet Dosan Expected release June 17, 2016
3 Great Grand Masti Hindi Vivek Oberoi, Ritesh Deshmukh & Aftab Shivdasani Expected release July 22, 2016
4 Flying Jat Hindi Tiger Shroff, Jacqueline Fernandez Expected release Aug 25, 2016
5 Half Girlfriend Hindi Arjun Kapoor & Shraddha Kapoor Directed by Mohit Suri Expected release Q1 FY18(Apr 2017)
6 XXX Hindi Directed by Ken Ghosh Expected release Q3 FY17

 

Management:

  • Mr Jeetendra Kapoor is the Chairman
  • Ms Shobha Kapoor is the MD
  • Ms Ekta Kapoor is the Joint MD

 

Shareholding Pattern as on March 31, 2016

The Equity Capital is @ Rs 15.19 Crs consisting of 75930443 Equity Shares of FV Rs 2 currently held as under

None of the promoters’ holding is pledged

Sr No. Major Non-Promoter % Stake
1 Reliance Capital Trustee Co Ltd A/C Reliance Mediaand Entertainment Fund 1.6
2 Atyant Capital India Fund I 4.15
3 GHI LTP LTD 4.61
4 GHI HSP LTD 1.32
5 India Capital Fund Limited 3.61
6 Vanderbilt University A/C Vanderbilt University 3.36
7 Aadi Financial Advisors LLP 3.95
8 Talma Chemical Industries Pvt Ltd 1.05
9 Gopikishan S Damani 3.22
10 Rajkumar Harlalka 1.15

 

Share Price Trend

 

Consolidated Financial Trends – Amt in Rs Crs

Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Total Sales 293 346 407 186 188 192
PAT 2.81 5.63 -17.21 14.58 20.4 -1.05
EPS (Rs)(adj.) 0.37 0.74 -2.27 1.92 2.69 -0.14
Debt – – – – – –
Equity Cap 15.19 13.04 13.04 13.04 13.04 13.04
Net worth 523.69 381.76 383 403 391 372
BV (Rs)(adj.) 69 50 50 53 51 49

Nitin Spinners Ltd

Nitin Spinners Ltd
Textiles
FV – Rs 10; 52wks H/L – 107.25/48.9; TTQ – 2713; CMP (June 8, 2016; 11.55 am) – Rs 65.25;
Market Cap – Rs 299 Crs

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


Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
Beta
45.83 205.65 241 768 44.16 45 9.64 6.77 33.02 1.45 64.21 0.94


Valuation Parameters

  1. EV/EBITDA: 3.9
  2. EV/Share: Rs 118
  3. EV/Sale: 0.7
  4. Market Cap/ Sale: 0.39
  5. Debt to Equity: 1.17
  6. RoE: 21.47%

Recent Updates

Bulk Deals

Date Client Transaction Quantity Traded Price (Rs)
23-Jun-2015 Reliance Wealth Management Limited BUY 458964 73.04

 

CDR Exit

  • Nitin Spinners exited the Corporate Debt Restructuring (CDR) in June 2013.
  • It completed mechanism for its loan facilities by paying the recompense amount as approved by CDR Core Group.
  • The company has made the payment of the recompense amount to the lenders.
  • The company resorted to CDR mechanism in March 2009 due to forex losses and adverse business scenario in 2007-08.
  • The company achieved turnaround in very short period of three and half years and opted for voluntarily exit from CDR mechanism.
  • This was one of the shortest turnaround in the history of CDR mechanism.

Overview:

  • The Company manufactures cotton yarn and cotton knitted fabric.
  • It was incorporated on October 15, 1992 as a private limited company with the name Nitin Spinner Pvt Ltd. In the year 1993, the company set up their first unit at Hamirgarh, Bhilwara (Rajasthan) for manufacturing coarse cotton yarns. It had its IPO in 2006 at Rs 21 per share.
  • The current production capacity of company is 37800 tpa of cotton yarn and 8600 tpa of knitted fabrics.
  • The Company manufactures a range of yarns, including open end yarns, multifold open end yarns, ring spun combed yarns, multifold ring spun yarns, compact yarns, fancy slub yarns, core spun yarns, S and Z twist yarns, dyeable cheese cones and organic cotton yarns and blends.
  • The Company manufactures knitted fabrics, as well as fabrics with Elastane. The Company offers fabrics in greige form in tubular and open width. Its product range in knitted fabrics include single jersey, pique structures, and interlock structures, rib structures and three thread fleece.
  • The Company’s products are applicable in manufacturing products, such as apparel and garments, under garments, terry towels, woven fabrics, home furnishings, carpets, denim, industrial textiles, medical textiles and socks, among others.
  • It exports to more than 50 countries ~ EU, USA and Canada, Latin America, Middle East, China, North Africa etc.
  • Company’s expansion project for installation of 72960 spindles involving capital outlay of Rs 290 Crs is being carried out as per schedule.

Clientele: Arvind, Raymonds, Decor, Alok, Ashima, Bhaskar, Nandan Exim, Creative Textiles, Shri Lakshmi Cotsyn, VHM, Pratibha, Maral, RSWM

 

Management:

  • Mr R L Nolkha is the CMD
  • Mr Dinesh Nolkha is the MD
Major Non-Promoters % Stake
Dolly Khanna 1.22

 

            Standalone Financial Trends ~ Amt in Rs Crs

Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 45.83 45.83 45.83 45.83 42.83 45.83
Networth 206 167 132 101 87 86
Long Term Debt 241 294 131 162 184 209
Total Sales 768 617 489 446 428 411
PAT 44 41 35 14 0* 7
EPS (Rs) 9.64 8.94 7.59 3.08 0.07 1.47
Book Value (Rs) 45 36 29 22 20 19
Debt to Equity 1.17 1.76 0.99 1.61 2.12 2.41
PAT Margin % 5.75 6.64 7.12 3.17 0.07 1.64

 

  • PAT grew at a CAGR of 35.85% while Total Revenue grew at a CAGR OF 10.98% over the past six years.
  • Net worth grew at a CAGR of 15.67% over the same period.
  • *Note that ~ In FY12 profits were low because the Company had suffered heavy losses during first half of the then financial year on account of higher carrying cost of cotton and also due to steep fall in yarn prices.

MT Educare Ltd

MT Educare Ltd
Education
FV – Rs 10; 52wks H/L – 199.9/100.5; TTQ – 8478; CMP (June 7, 2016) – Rs 180.4,

Market Cap – Rs 718 Crs

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

 
Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
Beta
Consolidated 39.82 149 – 287 32.34 37 8.12 22.22 25.93 4.88 42.78 1.18
Standalone 39.82 146 – 244 29.22 37 7.34 24.58 25.93 4.88 42.78 1.18


Valuation Parameters EV 707 EBITDA 58

  1. EV/EBITDA: 12.19
  2. EV/Share: Rs 178
  3. EV/Sale: 2.46
  4. Market Cap/ Sale: 2.5
  5. Debt to Equity: Nil
  6. RoE: 21.67%

India Max Investment Fund has sold 186853 equity shares in May 2016. Its stake in MT Educare now stands at 2.92% down from 3.38%.

 

Bulk Deals

Date Client Transaction Quantity Traded Price (Rs)
21-Mar-2016 Shree Bhuvanakaram Tradinvest Pvt Ltd BUY 199243 171.00
21-Mar-2016 Shree Bhuvanakaram Tradinvest Pvt Ltd SELL 198571 171.18
18-Dec-2015 Ashish Ramchandra Kacholia BUY 258043 166.99
17-Dec-2015 Abhinandan Leasing And Finance Ltd BUY 206204 146.80


Block Deals

Date Exchange Quantity Price Value(Cr) Time
08-08-2014 BSE 500000 128.00 6.4 15:20
05-05-2014 BSE 1762404 95.00 16.74 09:15:51
06-03-2014 BSE 867849 76.25 6.62 15:03
06-03-2014 BSE 867849 76.25 6.62 15:03:09
14-05-2013 NSE 741849 96.15 7.13 14:27

 

  • The business is asset light and has negative working capital, as the company receives fees in advance. This has helped the company scale operations with nearly no debt.
  • 80% of its revenue comes from Maharashtra, where it started, 8% comes from Karnataka and the rest from eight other States.
  • The company derives 45% of its income from the school division (grades 9-12); 35% from IIT-JEE coaching and 17% from CA coaching. The company has launched a new digital-based learning product called Robomate online and through tablets.
  • The company has tied up with 19 pre-university colleges to provide coaching for engineering and medical entrance exams and plans to expand such tie-ups to 30 colleges in two years. These tie-ups help reduce capex needs by utilising the college infrastructure.

Overview:

  • MT Educare Limited is an education support and coaching services provider for students in the secondary and higher secondary school and for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations.
  • The Company conducts commercial training, coaching, tutorial classes and activities incidental and ancillary thereon.
  • It also developed Robomate applications, which provides online access to lecturers through android or windows web-enabled devices and also through pen drives and storage device cards.
  • The Company has tied up with 14 colleges across Karnataka, which provides management services and test preparation services to its students.
  • MT Educare operates in Maharashtra, Karnataka, Tamil Nadu, Gujarat, Punjab and Chandigarh, and Haryana.
  • Some of the Company’s brands include Mahesh Tutorials Commerce, INK, Lakshya, MT Professionals, CPLC and Robomate.

Management:

  • Mr Mahesh Shetty is the CMD
Sr No. Major Non-Promoter % Stake
1 Ashmore Sicav Indian Small-Cap Equity Fund 1.24
2 Grandeur Peak Global Reach Fund 1.33
3 Premier Investment Fund Limited 1.36
4 Grandeur Peak Global Opportunities Fund 1.48
5 Grandeur Peak Emerging Markets Opportunities Fund 1.84
6 Kotak Mahindra (International) Limited 2.52
7 Banyantree Growth Capital II L.L.C 4.52
8 India Max Investment Fund Limited* 2.92
9 Ashish Kacholia 2.99
10 Idbi Trusteeship Services Limited 1.26
11 Chhaya Satyanand Shastri 4.31
12 Avendus India Opportunities Fund III 2.29

*As of May 2016.

Consolidated Financial Trends ~ Amt in Rs Crs

 Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 39.82 39.79 39.78 39.55 35.17 34.35
Networth 149 126 112 101 57 48
Long Term Debt – – – – – –
Total Sales 287 226 202 157 131 106
PAT 32 30 21 18 13 8
EPS (Rs)(adj.) 8.14 7.48 5.29 4.54 3.33 2.04
Book Value (Rs)(adj.) 37 32 28 25 14 12

 

  • Total Sales grew at a CAGR of 15% whereas PAT grew at a CAGR of 26% over the last six years.
  • Net worth grew at a CAGR of 20.78% whereas BV grew at a CAGR of 20.64% over the last six years.
  • For FY 16, operating margin dipped slightly compared to the same period last year due to higher sales and administrative costs.
  • PAT for FY 15 stood at Rs 29.72 Crs. Depreciation and amortization for the same financial year included a one-time reduction of Rs 5.57 Crs due to change in depreciation policy from WDV method to SLM method and change in useful lives pursuant to implementation of new Companies Act 2013. This created a one-time gain in Consolidated PAT increasing it by Rs 3.88 Crs. Hence adjusted PAT was Rs 25.84 Crs instead of Rs 29.72 Crs.