Shankara BuildPro Ltd  

Shankara BuildPro Ltd

 

Face Value – Rs.10

Issue Size – Rs. 350 Crs

Issue Open – March 22-24, 2017

Price Band – Rs.440 – Rs.460

Offer For Sale – Offer for Sale of 6818366 Equity Shares of Rs 10

New Issue – Upto Rs.50 Crs of Rs.10 each.

BRRLM – IDFC Bank, Equirus, HDFC Bank, Karvy.

 

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
21.87 49 5 2037 41.6 22 19.04 24.16 – 20.9 60.98

 

Overview:

  • Incorporated in 1995, Shankara Building Products Ltd is retailers of home improvement and building products in India.
  • They offer a wide range of products at their stores which includes structural steel, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing, tiles, sanitary ware, water tanks, plywood, kitchen sinks, lighting and other allied products.
  • As of September 24, 2016, they operated 100 Shankara BuildPro stores covering the end-user segments of urban and semi-urban markets in Andhra Pradesh, Goa, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, Telangana, and Puducherry.
  • The company also manufactures, assembles, processes, trades in, imports, exports, or deals in a range of steel sheets, steel roofing sheets, walling products, accessories, and steel structures and purlins used for construction of various types of building structures, as well as steel pipes, tubes and pipe fittings and iron and steel and allied products and engages in general hardware and general wholesale trading activities.
  • They serves home owners, architects and contractors and small enterprises and housing, general engineering, automotive, renewable energy, agriculture, and construction and infrastructure sectors.
  • They also carry reputed third party brands such as Sintex, Uttam Galva, Uttam Value, Futura, APL Apollo and Alstone and their own brands such as CenturyRoof, Ganga and Loha at their retail stores.

Management :

Mr. Sukumar Srinivas is the Promoter of the Company.

Objects of the Issue:

The object of the issue are:

  1. Repayment or pre-payment of loans of the Company and VPSPL;
    2. General corporate purposes;
    3. Receive the benefits of listing of the Equity Shares on the Stock Exchanges; and
    4. Enhancement of Company’s brand name and creation of a public market for the Equity Shares in India.

Major Shareholders:

Sr.No Non – Promoters No. of shares held % of shares held
1 Sukumar Srinivas 1336250 60.98
2 Fairwinds 7607317 34.78
3 Shankara Holdings 161200 0.74
4 Parwathi Mirlay 100000 0.46
5 C Ravikumar 72400 0.33
6 RSV Sivaprasad 61550 0.28
7 Dhananjay Srinivas 60550 0.28
8 KG Kashinath 41550 0.19
9 V Devananthan 41550 0.19
10 Alex Varghese 20620 0.09
    21502987 98.32

 

Consolidated Financial Trends (In Rs.Crs) :

Particulars FY16 FY15 FY14 FY13 FY12
Equity Paid Up 21.87 21.87 21.87 21.17 20.31
Networth 49 45 43 39 34
Total Debt 213 286 280 272 216
Net Sales 2037 1980 1928 1767 1414
Other Income 0.07 0.08 0.08 0.03 0.03
PAT 41.64 22.58 28.71 21.82 29.89
Book Value (Rs) 22 21 20 18 17
EPS (Rs) 19.04 10.32 13.13 10.31 14.72

 

Kriti Industries Ltd

Kriti Industries Ltd
Plastic Products
FV – Rs 1; 52wks H/L – 46.7/21; TTQ – 28 K; CMP – Rs 43.5 (As On March 16, 2017);                      

            Market Cap – Rs 216 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
4.96 55 20 481 10.76 11 2.17 20.05 21.39 3.95 65.76 -0.81

 

Standalone Financials and Valuations for 9Mnths FY17


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
4.96 77 25 284 12.98 15 2.62 16.6 21.39 2.9 65.76 -0.81

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.36
  2. ROE % -20
  3. Market Cap/Sales – 0.45

During the year the company processed 49010 MT of plastic as against 37812 MT as of last year which results in 29.61% growth.

Company has undertaken Water tank, RPVC Pipes & Fittings, CPVC and Infrastructure up gradation expansion projects involving capital outlay of Rs.14 Crs in Phase I to be financed by Term loan of Rs.10 Crs and balance by internal accruals, Company has availed term loan Rs. 8.5 Crs during the year. Company has repaid term loan of Rs. 7.93 Crs during the year.

Overview:

  • Kriti Industries (India) Ltd is engaged in the pipes business. The Company operates under Plastic segment in over four verticals, such as agriculture, building products, micro irrigation and infrastructure.
  • Its agriculture products include rigid polyvinyl chloride (RPVC) pipe and fittings, casing pipe, polyethylene (PE) coils, sprinkler systems, submersible pipe, suction and garden pipe.
  • Its building products include soil waste rainwater (SWR) drainage pipe and fittings, chlorinated polyvinyl chloride (CPVC) and plumb pipe and fittings, and garden pipe. Its micro irrigation products include micro irrigation lateral (inline and online), sprinkler systems, and RPVC pipe and fittings.
  • Its infrastructure products include RPVC ring fit pipe (elastomeric) and fittings, high-density PE (HDPE) and medium-density PE (MDPE) pipes and fittings, permanently lubricated (PLB) telecom duct and micro duct.
  • Kriti Auto & Engineering Plastics Pvt. Ltd is the wholly owned subsidiary of the Company with a gross turnover of Rs. 19 Crs and a Net Loss of 0.1 Crs.

Management:

  • Shiv Singh Mehta – MD
  •  V. K. Mittal – CFO

Major Non – Promoter Holdings:

Sr.No Non – Promoters No. of shares held % of shares held
1 Snadeep Jhaveri 515095 1.04
2 Rajeev Jawahar 527980 1.06
3 Varsha Shah 548992 1.11
4 Jyoti Kasliwal 661737 1.33
5 Rahul Mehta 683958 1.38
6 Praveen Kasliwal 1022996 2.06
7 Bhavesh Shah 1203944 2.43
8 Chartered Finance & Leasing Ltd 747397 1.51

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 4.96 4.96 4.96 4.96 4.96 4.96
Networth 55 45 43 40 37 32
Total Debt 55 38 32 37 37 29
Net Sales 481 381 371 334 304 279
Other Income 2 1 1 2 2 2
PAT 10.76 2.08 4.34 3.74 5.76 5.64
Book Value (Rs) 11 9 9 8 7 6
EPS (Rs) 2.17 0.42 0.88 0.75 1.16 1.14

 

The performance of the company was possible due to stability in Raw Material prices and Inventory Management.

 

 

 

 

Music Broadcast Ltd

Music Broadcast Ltd

 

Issue Open: Mar 6, 2017 – Mar 8, 2017
Issue Type: Book Built Issue IPO
Issue Size:
Fresh Issue of Equity Shares of Rs 10 aggregating up to Rs 400.00 Crs
Offer for Sale of 2658518 Equity Shares of Rs 10
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 324 – Rs. 333 Per Equity Share
Market Lot: 45 Shares
Minimum Order Quantity: 45 Shares
Listing At: BSE, NSE

BRRLM – ICICI Securities Ltd

 

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
P/BV
Promoter’s
Stake
38.91 104 253 246 42.5 27 10.9 30.6 12.3 95
  • Post issue Promoters Holding will come down to ~70%

Standalone Financials and Valuations for H1 FY17


Equity Capital
Net worth
Total
Sales		 AnnualisedPAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
P/BV
Promoter’s
Stake
57.05 117 138 60 21 10.5 31.7 15.9 95

 

Music Broadcast Limited operates as a subsidiary of Jagran Prakashan Limited.

Objects of the Issue:

  • Redemption of Listed NCDs; 
  • Early redemption of the JPL NCDs and repayment / pre-payment of JPL ICDs;and
    General corporate purposes.

Category-wise Break up:
Anchor – 4401159 Shares = 146.56Crs.
Net QIB – 2934106 Shares = 97.71Crs
NII – 2200580 Shares = 73.28Crs
RII – 5134685 Shares = 170.99Crs. (Lot size = 45)
Total Issue – 14670530 Equity Shares = 488.53Crs.

Overview:

  • Music Broadcast Ltd (MBL) is operating radio stations under the branch “Radio City” and has grown its presence from 4 cities in 2001 to 37 cities as on 15th February 2017. These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and nine out of eleven New Radio City Stations. The company expects the remaining two New Radio City Stations to be operationalised by March/ April 2017.
  • MBL is present in 12 out of the top 15 cities in India by population having a reach to over 49.60 million listeners in 23 cities.
  • All its Phase II Radio City Stations which were under Phase II Policy have been migrated to the Phase III Policy.
  • These include Radio City stations which are present at Bengaluru, Lucknow, Mumbai, New Delhi, Chennai, Pune, Hyderabad, Ahmedabad, Surat, Nagpur, Jaipur, Vadodara, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Nanded, Jalgaon and Akola and the Radio Mantra Stations which have been transferred to it pursuant to the Scheme of Arrangement which are located at Agra, Bareilly, Gorakhpur, Varanasi, Jalandhar, Ranchi, Hissar, and Karnal. Under the Phase III Policy, new cities were opened up for auction, pursuant to which MBL acquired 11 additional radio stations i.e. the New Radio City Stations.
  • The New Radio City Stations which have been operationalised are located at Kanpur, Ajmer, Kota, Udaipur, Patiala, Jamshedpur, Nasik, Kolhapur and Madurai. The remaining two New Radio City Stations namely Bikaner and Patna are expected to be operationalised by March/ April 2017.
  • Under the Phase III Policy the license period for radio stations has been increased to 15 years and radio stations are now permitted to carry news bulletins of AIR and also network their radio stations in all cities. 

The Promoter of the Company is JPL (Jagran Prakasha Ltd)

(Jagran Prakashan Ltd is one of the leading media and communications groups in India with interests spanning across print, radio, digital, out of home and brand activations. JPL publishes 10 print titles in five different languages across 13 States in India and has over 400 editions and sub-editions. These include titles such as ‘Dainik Jagran’ –India’s largest read daily and – ‘Inquilab’, one of India’s leading Urdu daily. As of March 31, 2016, JPL had consolidated operating revenues of 2107 Crs and a profit after tax of 445 Crs on a consolidated basis. )

Major Shareholders:

 

Shareholder No. of shares held % of shares held
Spectrum* 29906520 71.35
Crystal* 9003181 21.48
JPL 1358816 3.24
Apurva Purohit 1228500 2.93
  • The shareholding of Spectrum and Crystal were subsequently transferred to JPL pursuant to the Scheme of Arrangement.

 

From 1999 till 2005 it issued equity at par and in 2006 it issued few shares at a price of Rs. 32703.47 per share. In 2007 it issued further equity at a price of Rs. 70 per share and thereafter it again issued more shares at par in 2007 and 2015. In 2006 it also issued bonus shares in the ratio of 705.13 shares for every 1 share held.

 

Standalone Financial Trends (In Rs.Crs) :

Particulars FY16 FY15 FY14 FY13 FY12
Equity Paid Up 38.91 38.91 38.91 38.91 38.91
Networth 104 58 11 -14 -27
Total Debt 256 285 103 118 139
Net Sales 246 208 157 141 125
Other Income 13 7 3 2 3
PAT 42.5 47.1 24.3 11.6 -2.2
Book Value (Rs) 27 15 3 -4 -7
EPS (Rs) 10.9 12.1 6.2 3.0 -0.6

 

The Radio Revenue is 55%.

Debt is long term in nature (except 3 Crs short term included on FY2016)

Peer Comp: (Standalone FY16)

Particulars ENIL MBL
Mkt.Cap (Rs.Crs) 3942 1860
CMP (Rs) 827 333
FV (Rs) 10 10
Sales (Rs.Crs) 534 246
PAT (Rs.Crs) 100 43
Equity (Rs.Crs) 47.67 38.91
Networth (Rs.Crs) 769 104
Debt (Rs.Crs) 250 253
EPS (Rs) 21.0 10.9
BV (Rs) 161 27
P/BV 5.13 12.3
P/E 39.4 30.6

 

The market share of MBL is 21% whereas ENIL is 20%

The value share of MBL is 23% and ENIL is 24%