Madhucon Projects Ltd

Madhucon Projects Ltd
Construction & Engineering
FV – Re 1; 52wks H/L – 88.7/39; TTQ – 4875; CMP (June 1 2016; 11.45 am) – Rs 50.4;

Market Cap – Rs 370 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 7.38 (128) 4586 2335 63.99 – 8.67 5.81 22.24 – 58.86 2.62
Standalone 7.38 770 29 718 25.34 104 3.43 14.69 22.24 0.48 58.86 2.62

 

Valuation Parameters

  1. EV/EBITDA: 5.61
  2. EV/Share: Rs 651
  3. EV/Sale: 2.06
  4. Market Cap/ Sale: 0.16

 

Recent Updates

  • The company has completed the strategic sale of its 74% stake in MAJEL to Cube Highways and Infrastructure Pte Ltd in April 2016. Divestment of the stake has assisted Madhucon Group to pare down its debt by Rs 212 Crs and is the first major strategic sale in Madhucon’s highway portfolio, the release added.
  • Last October, the Company had sold its 100% in Madhucon Agra- Jaipur Expressways Ltd (MAJEL) to Singapore-based Cube Highways and Infrastructure for Rs 248 Crs. Cube Highways and Infrastructure is the Indian toll road and transportation investment platform of I Squared Capital, a private equity firm. Madhucon Projects sells Agra-Jaipur expressway project for Rs 248 crore

Overview:

  • Madhucon Projects Limited is engaged in civil construction.
  • It was founded by Nama Nageswar Rao in 1983 and is based in Hyderabad.
  • The Company is an integrated construction, infrastructure development and management company.
  • It caters to various sectors of construction and infrastructure projects, such as transportation, irrigation, water resources infrastructures, railways, engineering, procurement and construction (EPC), turnkey projects, developments of smart cities, and properties, in India.
  • Its projects include 4 Lane National Highway-5; 4 Lane National Highway-76; 4 Lane National Highway-45; Sriram Sagar Flood Flow Canal, Karimnagar, Telangana State; excavation at Polavaram Left Main Canal, Tuni, Andhra Pradesh; 4×150 megawatt (MW) thermal power plant at Tamminapatnam village, SPSR Nellore Dist., AP-Entrance Gate; Dewatering at BCCL, Dhandbad, Jharkhand; MSPIL-3500 TCD Sugar Plant-cum-24.2 MW Co-generation power plant at Rajeswarapuram, Khammam, and Heavy Engineering Workshop at Amlori, Coal India, among others.

Management:

  • Mr N Seethaiah is the MDs
  • Mr K. Srinivasa Rao is the COO

None of the promoter’s holding is pledged

Sr No. Major Non-Promoter % Stake
1 Sundaram Mutual Fund A/C Sundaram Select Microcapseries V 4.95
2 Ashish Dhawan 2.43
3 Chandra Singh Lodha 3.7
4 ICICI Prudential Life Insurance Company Ltd 1.36

 

Consolidated Financial Trends ~ Amt in Rs Crs

  FY 16 FY 15 FY 14 FY 13
Equity Paid Up 7.38 7.38 7.38 7.38
Networth -128.29 -314.96 -294.08 -82.69
Long Term Debt 4586 5103 4990 4276
Total Sales 2335 2038 1618 82
PAT 63.99 -3.54 -223.8 -319.4
EPS (Rs) 8.67 -0.48 -30.33 -43.28
Book Value (Rs) -17 -43 -40 -11