Scrip Watch

JBF Industries Ltd
Fibres & Plastics
FV – Rs 10; 52wks H/L –255/150.10; TTQ – 9 K; CMP – Rs 209 (As On August 23, 2016; 11.00);                                

  Market Cap – Rs 1710.3 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
81.87	2496	7184	8882	-181.53	305	-22.17	–	109.57	0.69	43.15	1.39

 

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
81.87	2496	2469	-159.11	305	19.43	–	109.57	0.69	43.15	1.39

 

Valuation Parameters:

1. Long Term Debt to Equity – 2.88
2. ROE % – Nil
3. Market Cap/Sales – 0.19

Key Updates:

• During the year, the KKR Jupiter Investors Pte Ltd. (lnvestor) has invested USD 150 Million in the Group. Accordingly 16374370 Equity shares of Rs. 10 each at a premium of Rs. 29O/- per share on preferential basis aggregating to Rs. 49123 lacs have been allotted by the Company and 12210527 Compulsory Convertible Preference Shares aggregating to Rs. 50065 lacs have been allotted by the JBF Global Pte. Ltd Singapore, a wholly owned subsidiary of the Company’
• The company’s step down subsidiary JBF Petrochemicals has entered in to a long term agreement with ONGC Mangalore Petrochemicals (OMPL) for supply of Paraxylene, the main raw material for production of purefied terephthalic acid (PTA). (http://www.moneycontrol.com/news/buzzing-stocks/jbf-industries3-enters-into-agreementongc-mangalore_6292621.html)
• During the year Company has incorporated new step down subsidiary namely “JBF AMERICA lNC” through its step down subsidiary JBF RAK LLC.,UAE.
• lmplementation of the 1.25 Million Tonnes per annum green field PTA project at Mangalore, being execuled through Step down subsidiary JBF petrochemicals Ltd is proceeding satisfactorily. The project is now expected to be completed by the end of current financial year.
• The company is amongst the Top 5 Domestic market leaders in Textile grade chips, Bottle grade chips and Partially Oriented Yarn. Internationally also, JBF is amongst the Top 10 manufacturers of Bottle grade chips and Polyester Films.

 

Overview:

• JBF Group manufactures polyester value chain products that are used in the fast-moving consumer goods (FMCG), textile and packaging industries.
• JBF Industries Ltd manufactures polyester chips, polyester yarn and processed yarn from polyester chips.
• The Company’s segments include Polyester Film and Other Polyester Products. Its polyester chips of textile grade consists of semi dull, semi bright, super bright, H Bright, T Bright, full dull, cationic semi dull, cationic semi bright, cationic super bright, easy dyeable semi dull and easy dyeable super bright.
• Its polyester chips of film grade consist of super bright chips and silica chips. Its bottle grade polyethylene terephthalate (PET) includes ARYAPET, which consists of AP0076, AP0076 HF, AP0080, AP0084, AP0084 FRH and AP0089.
• Its partially oriented yarn (POY) consists of raw white semi dull round, dope dyed black round and cationic POY SD round or full dull POY SD round.
• It also offers fully draw yarn, polyester textured yarn and sewing thread.

Sr.No	Name and Description of main products / services	% to total turnover of the Company
1	Polyester Chips	50.18
2	Partially Oriented Yarn / Fully Drawn Yarn / Polyester Texturised Yarn / Flat Yarn	49

 

Manufacturing facilities:

It has manufacturing facilities in India and the United Arab Emirates.

India:

1. Sarigam, Gujarat

Total Chips capacity – 608000 M.T p.a which includes

• Textile Grade Chips
• Speciality Grade Chips
• Bottle Grade Chips

 

2. Athola & Saily, Silvassa

• Polyester Yarn Capacity – 262000 MT p.a
• Texturized Yarn Capacity – 90000 MT p.a

           U.A.E:
Ras Al-Khaimah

• Bottle Grade Chips – 432000 MT p.a.
• BOPET Films – 102000 MT p.a.

 

 Management:

• Mr. Bhagirath C Arya – Chairman
• Mr. Rakesh Gothi – MD &CEO
• Mr. P. N. Thakore  – CFO

The Equity Capital is @ Rs  81.87 Crs consisting of 81871849 equity Shares of FV Rs 10 currently held 

  19.25% Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Non – Promoters	No. of shares held	% of shares held
Cresta Fund Ltd	1781212	2.18
Copthall Mauritius Investment Ltd	3231000	3.95
Life Insurance Corporation of India	2120487	2.59
National Westminister Bank PLC as Trustee of the Jupiter India Fund	1798541	2.2
Aadi Financial Advisor LLP	1519342	1.86
Vallabh Roopchand Bhansali	871400	1.33
Sunidhi Capital Pvt Ltd	1682904	2.57
KKR Jupiter Investors Ptd Ltd	16374370	20
Lata Bhansali	673232	1.03
Eriska Investment Fund Ltd	1270000	1.55

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars	FY16	FY15	FY14	FY13	FY12	FY11
Equity Paid Up	81.87	65.5	65.32	72.63	72.02	71.65
Networth	2496	1835	1885	1870	1670	1454
Total Debt	10140	8232	5951	3639	2425	1459
Net Sales	8882	8925	8609	7501	7305	6493
Other Income	8	45	41	46	126	22
PAT	-181.53	31.09	5.68	113.46	222.88	546
Book Value (Rs)	305	280	289	257	232	203
EPS (Rs)	-22.17	4.75	0.87	15.62	30.95	76.20