Eastern Gases Ltd
Oil Marketing & Distribution
FV – Rs 10; 52wks H/L – 72.9/23.1; TTQ – 495; CMP – Rs 61 (As On April 17, 2017);

Market Cap – Rs 90 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
15	33	11	269	3.14	22	2.09	29.2	18.29	2.8	56.83	1.04

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
15	38	8	224	3.05	25	2.03	30	18.29	2.44	56.83	1.04

Valuation Parameters:

Long Term Debt to Equity – 0.33
ROE % – 10
Market Cap/Sales – 0.33

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With the new government policy PAHAL (DBTL) Scheme it has able to restrict the black marketing of subsidies LPG and thereby saves Rs 10,000 crores. It has predominantly increased the sale of cylinders at market price and thereby a huge opportunity to the parallel marketers to play.

The company has started two new LPG bottling plants at Bangalore & Hyderabad with its vision of pan India presence. This will add to company’s presence in Domestic, Commercial and Industrial segment. With various government checks on Domestic LPG supplies the company expects that the Domestic sector will also open up as Good Avenue in years to come.

The Authorized Equity Share Capital of the Company be and is hereby increased from Rs. 15 Crs divided into 15000000 (One Crores Fifty Lakhs) Equity Shares of Rs. 10 each to Rs. 18.08 CRs divided into 18080000 (One Crores Eighty Lakhs Eighty Thousand) Equity Shares of Rs. 10 each by creation of additional 3080000 (Thirty lakhs Eighty Thousand) Equity Shares of Rs. 10 amounting to Rs. 30800000 (Rupees Three Crores Eight Lakhs) by way of warrants, each ranking pari- passu in all respect with the existing Authorized Equity Share Capital. http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/0d7f9aa4-c51c-4f85-bb76-11b42c390f0b.pdf

Overview:

Eastern Gases Ltd iis engaged in manufacturing of gas and distributing of gaseous fuels.
The Company is engaged primarily in the business of bottling, trading of liquefied petroleum gas (LPG) and Retailing of AutoLPG.
It also manufactures propane, ammonia and butane, and supplies fuel to various companies in industrial houses.
The Company also undertakes execution of turnkey projects of gas installation customized according to the customers’ requirements on a long-term gas supply contract basis.
It can supply gas on long-term contract, as well as setup installations at the customer’s premises.
The Company also provides testing services, such as SRV Testing.
The Company is engaged in marketing its EAST GAS brand commercial LPG cylinders.
The Company has bottling plants located throughout India.
Its total installed capacity is 70,000 metric ton (MT) per annum.
It caters the commercial cylinder market of West Bengal, Bihar and Orissa from its own bottling plant situated at Durgapur.

Management:

Sushil Kr. Bhansali – CMD
Ranjeet Kochar – CFO

The Equity Capital is @ Rs 15 Crs consisting of 15000000 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Sr.No	Non – Promoters	No. of shares held	% of shares held
1	Rekha Creations Pvt. Ltd	314583	2.1
2	Demart Trading Pvt. Ltd	700000	4.67
3	ARP Commercial Pvt. Ltd	700000	4.67
4	Bircort Agro Pvt. Ltd	700000	4.67
5	Epixtar Trading Pvt. Ltd	700000	4.67

Standalone Financial Trends (In Rs. Crs) :

Particulars	FY16	FY15	FY14	FY13	FY12	FY11
Equity Paid Up	15	15	15	15	8.56	7.98
Networth	33	31	28	25	13	10
Total Debt	52	48	39	19	10	11
Net Sales	269	230	228	210	136	90
Other Income	1	1	0.5	0.2	0.2	0.07
PAT	3.14	2.74	2.3	2.18	1.47	0.99
Book Value (Rs)	22	21	19	17	15	13
EPS (Rs)	2.09	1.83	1.53	1.45	1.72	1.24