Prakash Industries Ltd

Prakash Industries Ltd
Iron & Steel/Interm.Products
FV – Rs 10; 52wks H/L –54.85/23.05; TTQ – 4.64 Lacs; CMP – Rs 53 (As On September 1st 2016; 11.00);                             

     Market Cap – Rs 718.69 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
134.49 2206 575 2055 20.58 164 1.53 34.64 23.93 0.32 46.29 2.13

 

Standalone Financials and Valuations for Q1 FY17


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
135.07 2206 639 14.04 164 1.04 50.96 23.93 0.32 46.29 2.13

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.26
  2. ROE % – 0.93
  3. Market Cap/Sales – 0.35

Key Updates:

Prakash Industries Ltd. secured coal for its captive power plant in Chattisgarh, bringing to an end a two-year hunt for fuel and the company will get 53500 tonnes of coal every year over the next five years from Coal India Ltd. subsidiary, South Eastern Coalfields Ltd. The linkage will provide long-term stability, and cost savings for the its captive power plant, the company said in its press release. (http://www.bloombergquint.com/business/2016/08/05/prakash-industries-secures-partial-coal-linkage-for-its-captive-power-plant)

Overview:

  • Prakash Industries Limited is engaged in mining, steel and power operations.
  • The Company manufactures MS billet, ferroalloys, MS thermo mechanically treated (TMT) and MS coil, and allied and HB wire rod.
  • The Company operates through segment, including Power, Steel and polyvinyl chloride (PVC) Pipes and Others.
  • The Company’s manufacturing plants are located at Champa, Chotia and Raipur in Chhattisgarh; Kashipur, Uttarakhand; Koenjhar, Odisha, and Muppandal, Tamil Nadu.
  • It has setup sponge iron kilns based on Stelco-Lurgi/Republic Steel-National Lead (SL/RN) technology.
  • It has iron ore mines in the state of Chhattisgarh and Orissa. The Company produces steel billets and blooms in the steel melting shop.
  • The Company has set up manufacturing facilities for production of ferroalloys in submerged arc furnaces.
  • The Company has set up wind power generating farms at Muppandal in the state of Tamil Nadu.  

Management:

  • Mr. V. P. Agarwal – Chairman
  • Mr. Vikram Agarwal – MD
  • Mr.P. L. Gupta – CFO

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of shares held % of shares held
1 SMC Comtrade Ltd 9000000 6.69
2 Jhunjhunwala Rakesh Radheshyam 4000000 2.97
  Total 13000000 9.67

 

Standalone Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 134.49 134.49 134.49 134.49 134.49 134.49
Networth 2206 2205 2233 2094 1958 1719
Total Debt 656 760 725 821 873 621
Net Sales 2055 2844 2600 2513 2109 1673
Other Income   8 4 2 2 9
PAT 20.58 9.34 173.16 164.89 268.16 267.08
Book Value (Rs) 164 164 166 156 146 128
EPS (Rs) 1.5 0.7 12.9 12.3 19.9 19.9