All posts by : Harsh Shah

ASM Technologies Ltd
IT Consulting & Software
FV – Rs 10; 52wks H/L –187.90/100; TTQ – 7270 ; CMP – Rs 166 (As On 12 February 2018);                         
Market Cap – Rs 83 Crs

Financials and Valuations (Amt in Rs Crs unless specified)

Valuation Parameters:

1. Long Term Debt to Equity – NIL
2. ROE % – 5
3. Market Cap/Sales – 1

http://www.bseindia.com/download/Research_Report/Report/526433/2017-18/ASM%20Technology%20Q1FY18%20by%20VFCS.pdf

http://www.bseindia.com/download/Research_Report/Report/526433/2016-17/ASM%20Technology%20Q4FY17%20by%20VFCS.pdf

Overview:

ASM Technologies Ltd is an India-based holding company. The company is a pioneer in providing world Class Consulting Services in Enterprise Solutions for the Packaged ERP implementation, in Enterprise Product Development for SMB Segment and in Technology Solutions covering Embedded Systems and System Software to its Global Clientele.

The company offers a broad spectrum of enterprise services such as configuration, implementation, customization, end-user training and documentation, Post Implementation Support & Maintenance across leading commercial off-the-shelf products like SAP, Oracle Applications, PeopleSoft, JD Edwards and Microsoft Dynamics.

The company provides consulting Services (Product Engineering, Development, Product Support, Porting, Testing and Test Automation) to its Global Clientele in the Embedded Software and System Software space. The companys subsidiaries include Pinnacle Talent Inc, Advanced Synergic Pte Ltd and ESR Associated Inc. The company serves the market of India, Singapore, US, UK, Middle-East and Japan.

The company is having their offices in India, Singapore, USA (Chicago, Toledo and Detroit) & UK (London). They are also having an Offshore Development & Support Centers in India and Overseas.

Management :

• Mr. M R Vikram – Chairman
• Rabindra Srikantan – MD

Subsidiaries:

The company has 2 wholly own subsidiaries Advanced Synergic Pte Ltd, Singapore and Pinnacle Talent Inc, USA and an step down subsidiary ESR Associates Inc, USA

Major Non – Promoter Holdings:

Archit Organosys Ltd
Commodity Chemicals
FV – Rs 10; 52wks H/L – 88.85/19.55; TTQ – 9.54 Lacs; CMP – Rs 61.9 (As On October 13, 2017);                      
Market Cap – Rs 59 Crs

Standalone Financials and Valuations for FY17 (Amt in Rs Crs unless specified)

Promoter holding in Dec,2016 was 27.09%

Standalone Financials and Valuations for Q1 FY18

Valuation Parameters:

1. Long Term Debt to Equity – 0.7
2. ROE % – 6
3. Market Cap/Sales – 1.22

Company has developed in house quality products of SMCA powder in to crystal form for the first time in Indian market. This product is developed by Mr. Archit Amin, who has studied in U.S.A. This will fetch good business in export markets with better profitability.

Industry wise domestic utilization rates are expected to reach high levels of 90 % by the end of 2018, given the healthy growth in the end-user market.

In order to expand Companies current manufacturing operations, the Company is in the process of establishing a new manufacturing facility at Narmad (“Bhavnagar Facility”) on a land area admeasuring 56,656 sq. mtrs. In this regard, Company has purchased the land and has started construction of the proposed plant. The Bhavnagar Facility will add to the production capacity of Monochloroacetic Acid (MCA) and Sodium Monochloro Acetate (SMCA) and will add Chloro Acetyl Chloride (CAC) as well as Polyaluminium Chloride (PAC) to Company’s product portfolio.

During the year the company has allotted 10042200 partly paid Equity Shares having face value of Rs. 10 each at a price of Rs. 25per share (including premium of Rs. 15). Rs. 12.50 (Rs. 5 per share towards face value and Rs. 7.50 per share towards share premium) has been received by the Company on application and the remaining amount be payable on first and final call as and when the same is made.

Overview:

• Archit Organosys Ltd is engaged in the business of dealing and manufacturing of chemicals.
• The Company’s products include Mono Chloco Acetic Acid and Ethyle Acetate.
• The Company produces a range of organic chemicals, pigments, specialty derivatives, cosmetic products, adhesives and sealants.
• The Company’s monochloroacetic acid and sodium monochloroacetate are used in the synthesis of various agricultural chemicals, cosmetic surfactants, oil drilling chemicals and plastic additives.
• The Company’s Marval is a plant growth enhancer, which is made from organic plant waste. Marval contains natural trace elements, simple and complex sugars in a balanced form. Marval also contains phenolic compounds and cytokinins.
• The Auxins in Marval are naturally occurring plant growth hormones.
• The Company’s coatings include AOL RUBBOCOAT and AOL ROOF & GUTTER SEALANTS. RubboCoat is  single component rapid drying paint. RubboCoat is used for vehicle underbody and roof tops.

Management:

• Kandarp Amin – Chairman
•  Bharatkumar Shrimali  – CFO

The Equity Capital is @ Rs 10.04 Crs consisting of 10042200 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Standalone Financial Trends (In Rs.Crs) :

Associated Stones Industries (KOTAH) Ltd
Mining
FV – Rs 1; 52wks H/L –47.70/10.88; TTQ – 6 Lacs; CMP – Rs 48 (As On February 22, 2017);                      
Market Cap – Rs 399 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for H1 FY17

*On 26/11/2015 there was a stock split from Rs.5 to Rs.1

*On 29/9/2016 there was a bonus issue of 1:4 equity shares of Rs.1 each

Valuation Parameters:

1. Long Term Debt to Equity – 0.7
2. ROE % – 4
3. Market Cap/Sales – 2

Overview:

• Associated Stone Industries is the world’s largest stone mining companyand the only listed one in India. The end user of the industry is the Real estate, construction and Infrastructure.
• Established in 1945, during the time of the British Raj, Associated Stone Industries has a long and distinguished history of providing its customers with beautiful, sophisticated and exotic products.
• ASI still holds the largest quarries in the world spread across 10 sq kms at Ramganjmandi, situated in Rajasthan, the home of the most flawless Kotah Stone.
• Powered by a work force of 5000 dedicated, passionate and driven employees, ASI produces a staggering 15 Crore Sq.ft of Kota Stone each year.
• Unwilling to compromise on quality, ASI has equipped themselves with the best diamond tool units for cutting, sawing & shaping various natural stones, and produces some of the finest natural stones, all at par with global standards.
• The Company has sold Wind Power Unit of 1.125 MW at Tirupur District of Tamil Nadu in November, 2015.

The Company has acquired a foreign subsidiary in UAE, Al Rawasi Rock and Aggregates LLC, through its wholly owned subsidiary viz. ASI Global Ltd., Mauritius to tap the opportunity of huge volume of industrial, infrastructure, reclamation and other construction work currently underway in the Arabian Gulf region. The estimated reserve of quarry of this Company is around 200 million tones which is sufficient for about 45 years of its operations.

Management:

• Deeapk  Jatia – CMD
• Pavan  Soni – CFO

The Equity Capital is @ Rs 6.63 Crs consisting of 66283760 equity Shares of FV Rs 1 currently held as under

57.95% Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

For the year under review, the production of Kotah Stone was 1207.40 Lacs sq. ft. as against 1172.77 Lacs sq. ft.

BSE Ltd (IPO of 29955434 shares of Rs.1 each)

 Face Value – Rs.2

Price Band – Rs.805 – Rs.806

IPO Size – Rs. 1243 Crs (Upper Band) & 1242 Crs (Lower Band)

Offer For Sale – Offer for Sale of 15427197 Equity Shares of Rs 2

New Issue – 5427197 Equity Shares of Rs 2  

BRRLM – Edelweiss, Axis Capital, Jefferies, Nomura, Karvy, Motilal Oswal, SBI Capital Markets, SMC Capital Ltd, Spark Capital Advisors Pvt Ltd.

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for H1 FY17

Overview:

• BSE Ltd is the owner and operator of BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by number of companies listed.
• BSE offers 3 business namely, Listing Business, Market Business and Data Business.
• The Bombay Stock Exchange was established in year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world.
• World’s two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE.
• BSE offers trading in Equity, Debt Instruments, Derivatives, Mutual Funds and SME Equity.
• The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
• BSE also offer services including risk management, clearing, settlement, market data services, IT services and solutions, licensing index products such as the S&P BSE SENSEX and financial & capital markets trainings.

BSE Ltd Strengths:

1. Strong brand recognition with a track record of innovation
2. Diversified and integrated business model and active relationship with marketparticipants
3. State-of-the-art infrastructure and technology

 NSE turnover:

Management :

• Ashishkumar Chauhan – MD & CEO
• Sudhakar Rao – Chariman
• Nayan Mehta – CFO

Major Shareholders:

• The entire shareholding of Singapore Exchange is proposed to be offered by it in the Offer and the same is currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• Of the 4913863 Equity Shares held by GKFF Ventures, 2456931 Equity Shares are proposed to be offered by it in the Offer – and are currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• The entire shareholding of Quantum (M) Limited is proposed to be offered by it in the Offer and is currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• Of the 4015544 Equity Shares held by Caldwell India Holdings Inc., 1668906 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• The entire shareholding of Atticus Mauritius Limited is proposed to be offered by it in the Offer and the same is currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• Of the 4015544 Equity Shares held by Acacia Banyan Partners Limited, 2000000 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• Of the 3006796 Equity Shares held by Bajaj Holdings and Investment Limited, 1503398 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.

Consolidated Financial Trends (In Rs.Crs) :

Bharat Financial Inclusion Ltd
Finance (Including NBFCs)
FV – Rs 10; 52wks H/L –938.75/435; TTQ – 5.24 Lacs; CMP – Rs 612 (As On December 30th 2016);                                  
Market Cap – Rs 8441 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for H1 FY17

Valuation Parameters:

1. Long Term Debt to Equity – 1.64
2. ROE % – 22
3. Market Cap/Sales – 6.4

The company has a Gross Loan Portfolio of Rs. 9046 Crs as on Q2 FY17.

Morgan Stanley Asia (Singapore) and Morgan Stanley Mauritius Company acquired 1.0996 per cent stake Bharat Financial, according to the release on23^rdDecember,2016. http://economictimes.indiatimes.com/markets/stocks/news/bharat-financial-surges-over-10-on-stake-hike-by-morgan-stanley-units/articleshow/56214855.cms

 Overview:

• Bharat Financial Inclusion Limited, formerly SKS Microfinance Limited, is a non-banking financial company-micro finance institution (NBFC-MFI).
• The core business of the Company is providing small value unsecured loans and certain other basic financial services to its Members (Individuals from low income households who are clients of the Company are classified as “Members” and Members whose loans are outstanding are classified as “Borrowers”).
• The Company is engaged in providing micro finance services to women in the rural areas of India enrolled as members and organized as Joint Liability Groups.
• In addition to its business of providing micro-credit, the Company uses its distribution channel to provide other financial products and services to the members.
• Programs in this regard primarily relate to providing of loans to the members for the purchase of mobile handsets, solar lamps, bicycle and sewing machines, among others.
• The Company provides door step delivery of its services through center meetings in villages.
• The Company offers loans mainly for income generating activities and not for personal consumption.
• The Company has presence across approximately 20 states, covering over 100,000 villages and catering to approximately 69.7 lakh women members.
• The Capital Adequacy Ratio is 33.4%

Management:

• M. R. Rao  – MD & CEO

The Equity Capital is @ Rs 137.55 Crs consisting of 137551594 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Standalone Financial Trends (In Rs. Crs) :

Bombay Burmah Trading Corporation Ltd
Tea & Coffee
FV – Rs 2; 52wks H/L –611.95/311; TTQ – 1.54 Lacs; CMP – Rs 491 (As On August 9 2016; 11.00);                                  
Market Cap – Rs 3426 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – 0.16
2. ROE % – 20.21
3. Market Cap/Sales – 0.38

Bombay Burmah Trading Corp(BBTC) is a holding company for Britannia and other companies of Wadias. BBTC holds  50.75% in Britannia. (Market Cap of Britannia is Rs.37647 Crs.)

During FY2015 the company sold its Land and Building in Padi, Chennai resulting in a profit of Rs.159.92 Crs.

Overview:

• The Bombay Burmah Trading Corporation Ltd operates through the following segments: Plantation Products (produces/trades in Tea, Coffee, Timber, Cardamom and Pepper); Dental Products (manufactures/trades in Health Care/Dental products); Auto Ancillary Products (manufactures, solonoids, switches, valves, slip rings etc. for automobile and other industries); Investments (invests in various securities listed as well as unlisted mainly on a long term basis); Weighing Products (manufactures/trades in Analytical, Precision Balances and Weighing Scales), and Real Estate (represents property development).
• It operates through the following subsidiaries: Dowbiggin Enterprises Pte. Limited, Nacupa Enterprises Pte. Limited, Spargo Enterprises Pte. Limited, Valletort Enterprises Pte. Limited and Bannatyne Enterprises Pte. Limited.

 Management:

• Nusli Wadia – Chairman
• Ness Wadia – MD
• Amit Chhabra – CFO

The Equity Capital is @ Rs 13.96 Crs consisting of 69771900 equity Shares of FV Rs 2 currently held as under

2.85% Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

Balaji Telefilms Ltd
Broadcasting & Cable TV
FV – Rs 2; 52wks H/L – 150/64; TTQ – 9629; CMP (June 13, 2016; 1.37 pm) – Rs 110;
Market Cap-Rs 836Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

• Revenues declined by 16% Y-o-Y on a consolidated basis owing to three shows off air during the quarter. The shows that ended were ‘Meri Aashiqui Tum Se Hi’, ‘Itna Karo Na Mujhe Pyaar’ and ‘Pyar Ko Ho Jane Do’.
• The Company raised Rs 150 Crs by allotting 10720000 Equity Shares on a preferential basisto Vanderbilt University, GHI LTP LTD, GHI HSP LTD, GHI ERP LTD, Atyant Capital India Fund-I in March 2016. The fund raise was for ALT Digital Media, its wholly owned subsidiary. The Equity capital has thus increased to Rs 15.19 Crs from Rs 13.04 Crs.
• Balaji Telefilms has over 18 movies in various stages of development has employed capital of Rs 181.22 Crs in the FY16 compared to Rs 83.79 Crs a year ago. In the movie segment, the company reported loss (profit before tax and interest) of Rs 13.41 Crs in FY16 from Rs 6.24 Crs in the earlier year.
• In FY15, the company had released movies like ‘Main Tera Hero’, ‘Kuku Mathur Ki Jhand Ho Gayi’ and ‘Ek Villian’ while in FY16 it released only one movie.

Valuation Parameters:

1. EV/EBITDA: 136.5
2. EV/Share: Rs 108
3. EV/Sale: 2.8
4. Market Cap/ Sale: 2.95
5. Debt to Equity: Nil
6. RoE: 0.5%

Recent Updates:

• ‘Udta Punjab’ row: Bombay high court to pass order on Monday
• The Company’s unit ALT Digital Media Entertainment Ltd will be launching an over-the-top (OTT) platform by mid FY17. The company is targeting 20 million global subscribers. Paid users, not downloads, matter for OTT platforms: Balaji Telefilms’ Nair

Bulk Deals:

Overview:

• Incorporated in the 1994, Balaji Telefilms is a Company promoted by Actor Jeetendra Kapoor and his family.
• The Company’s segments include:
• Commissioned Programmes
• Channels and Sponsored Programmes
• Commissioned Programmes derive income from sale of television serials whereas Channels and Sponsored Programmes draw income from telecasting of television serials on channels.
• It has produced over 15000 hours of television content since its inception, including content in Hindi, Tamil, Telegu, Kannada and Malayalam.
• Its brands include Alt Entertainment brand, which will be used on all content catering to a younger, more urban demographic, across the television, movie, mobile and Internet space; Hoonur, which will be used in the online and mobile space both for the entertainment portal and for user generated content, and ICE covers a specializations like Acting, Cinematography, Direction, Editing, Production, Scriptwriting, Sound and Vfx
• India’s Television industry is expected to grow at a CAGR of 16.2% over the next five years
• The company follows a de-risked business model, it pre-sells theatrical and satellite rights.

Management:

• Mr Jeetendra Kapoor is the Chairman
• Ms Shobha Kapoor is the MD
• Ms Ekta Kapoor is the Joint MD

Shareholding Pattern as on March 31, 2016

The Equity Capital is @ Rs 15.19 Crs consisting of 75930443 Equity Shares of FV Rs 2 currently held as under

None of the promoters’ holding is pledged

Share Price Trend

Consolidated Financial Trends – Amt in Rs Crs

Blue Star Ltd
Consumer Electronics
FV – Rs 2; 52wks H/L –444/306.1; TTQ – 5 K; CMP – Rs 416 (As On May 31st 2016; 11.00);                                  
Market Cap – Rs 3742 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – 0.03
2. ROE % – 16.35
3. Market Cap/Sales – 1

Key Updates:

• Blue Star launches Inverter Room ACs with anti-corrosive copper condensers for Maldives.

http://www.equitybulls.com/admin/news2006/news_det.asp?id=186302

• Blue Star sold the 4.9 % stake Vigilant Applications to AA Management for a total sum of £220,000.

https://www.insidermedia.com/insider/southeast/blue-star-sells-vigilant-applications-stake

• Blue Star becomes 7th Indian company to achieve Verafirm Certification by BSA.

http://www.indiainfoline.com/article/news-business/blue-star-becomes-7th-indian-company-to-achieve-verafirm-certification-by-bsa-116051600218_1.html

Overview:

• Blue Star Ltd is an air-conditioning and commercial refrigeration company.
• The Company is also engaged in the business of plumbing and firefighting, IT services and into distribution and maintenance of imported professional electronics and industrial systems.
• The Company’s segments include Electro Mechanical Projects and Packaged Air-conditioning Systems, and Cooling Products.
• The Electro Mechanical Projects and Packaged Air-conditioning Systems segment is engaged in the design, manufacturing, installation, commissioning and maintenance of central air-conditioning plants, packaged/ducted systems and variable refrigerant flow (VRF) systems, as well as contracting services in electrification, plumbing and fire-fighting. It also provides after-sales services.
• The Company offers a range of room air conditioners for both residential, as well as commercial applications.
• It also manufactures and markets commercial refrigeration products and cold chain equipment.
• Blue Star exports its products to the Middle East, Africa, SAARC and ASEAN countries.

      Management:

• Ashok M Advani – Chairman
• Satish Jamdar – MD
• Neeraj  Basur – CFO

The Equity Capital is @ Rs  Crs consisting of 89936105 equity Shares of FV Rs 2 currently held as under

0.67% Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

Consequent to amalgamation and subsequent sale of IT business, the Company has recorded a net gain of Rs 46.1 Crs in consolidated results which is disclosed in Exceptional item In the Profit & Loss statement.

APL Apollo Tubes Ltd
Manufacture of Infrastructure Products
FV – Rs 10; 52wks H/L – 899/367; TTQ – 2389; CMP (May 30, 2016) – Rs 888;
Market Cap – Rs 2081 Crs

Consolidated Financials and Valuations for 9MFY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for FY15 (Amt in Rs Crs unless specified)

The share price has increased by 125% since we last covered the scrip on March 13, 2015 (Rs 394 per share).

It has moved up by 30% in the last two months from Rs 687 (30/3/16) to Rs 888 (30/5/16).

Recent Updates

• A new plant has been set up at Raipur, Chhattisgarh with total capital outlay upto Rs 75 Crs. The plant will manufacture galvanized steel tubes, hollow section and galvanized sheets having a total capacity of 60000 MTPA. The Company expects to commence operations at Raipur plant by Q1 of FY18.

Bulk Deals

Block Deals

Updates when the stock was last covered on March 13, 2015:

• HDFC Mutual Fund bought 196000 equity shares close to about 0.83% stake in APL Apollo Tubes on March 10, 2015 ~ APL Apollo Tubes hits record high; HDFC MF buys shares
• ICRA upgraded APL Apollo Tubes for long – term from [ICRA]A- to [ICRA]A and reaffirmed the short-term rating of [ICRA]A1 for Company’s credit facility.
• The Company launched a new product ~ steel door frames ~ which has a double life expectancy as compared to wooden door frames and costs 40% less. The product launch is in line with Prime Minister Narendra Modi’s affordable housing program. The Company has also taken the patent from the Patent Office of Govt. of India. ~ BSE Extracts

Overview

• APL Apollo Tubes Ltd is engaged in manufacturing and exporting of steel pipes and tubes. It was incorporated in the year 1986 and is headquartered in Delhi.
• It operates in the steel tubes and pipes market specifically in the Welded Segment.
• The Company manufactures a range of steel products ERW black tubes and pipes, such as hot-dipped galvanized and pre-galvanized tubes, hollow sections and structural. It is the only player manufacturing black, galvanized and pre-galvanized products.
• The current capacity of APL Apollo is about 1.05 million tonnes.
• The Company markets its product under the brand APL Apollo which covers MS Black, G.I. round pipes and hollow sections both in rectangular and square quality rolled on high frequency induct weld (HFIW) mills.
• The Company focuses on supplying tubes for applications in the engineering sector, idler tubes for conveyors, propeller shaft tubes and bobbin tubes for textile industry with applications where high precision diameter is required and other high rotational applications.
• The Company also manufactures CPVC pipes, uPVC pipes, uPVC SWR Drainage system, uPVC plumbing system, well casing and screen pipes and HDPE drip irrigation system, among others.
• It serves Metal Engineering & Fabrication, Electric Poles, Ports, Railways, Aviation, Oil & Gas, Metros, Solar Power, Automobile sectors.
• It has 300 stock keeping units (SKUs), largest in the industry. It has 6 manufacturing units including a new greenfield plant in Hosur, Tamil Nadu. It is also acquiring two units in Bangalore and Mumbai. Its plant in Hosur is close to JSW Steel, the market it serves.
• The Company has three wholly-owned subsidiaries ~ Shri Lakshmi Metal Udyog Limited, Lloyds Line Pipes Limited and Apollo Metalex Private Limited.
• Hollow sections form 35% of the revenue mix while MS-Black and Pre-galvanized contribute 25% each and the rest comes from Galvanized tubes. From a margin perspective, pre-galvanized tubes have the highest margin of about 13-15% while MS-Black have more modest margins in the region of 4-6%

Key Growth Drivers for the Steel industry:

1. Smart Cities
2. Ganga Action Plan
3. Agriculture
4. Infrastructure Buildout

Equity Unquoted Investments as on March 31, 2014:

Clientele:

• Infrastructure: Delhi Metro, Adani Group, Gammon, L&T, Afcons and B L Kashyap.
• Water: Jain Irrigation
• Corporates: Unicer, TATA
• Power & Gas: BHEL, Gujarat Gas, HP, IGL, Moser Baer, Suzlon, BP

Management:

• Sanjay Gupta is the CMD

 Shareholding Pattern as on March 31, 2016

The Equity Capital is @ Rs 23.44 Crs consisting of 23438636 Equity Shares of FV Rs 10 currently held as under

None of the promoters’ holding is pledged

Share Price Trend

Consolidated Financial Trend ~ Amt in Rs Crs

Net Sales grew at a CAGR of 30.37% while PAT grew at a CAGR of 13.46% over the last six years. Net worth has grown at a CAGR of 16.27% over the same period.

• *Note that ~ On August 13, 2013, the Company allotted 1115000 Equity Shares having a FV of Rs 10 each to Mr. Ashok Kumar Gupta, a person considered as promoter upon conversion of equal number of warrants.
• The Company had allotted 1500000 warrants to Mr. Ashok Kumar Gupta on a preferential basis on February 14, 2012 at a price of Rs 145 each wherein each warrant entitled Mr. Ashok Kumar Gupta to subscribe for one Equity Share of the Company.
• Out of these fifteen lakhs warrants, 385000 warrants were converted in to equity shares on March 23, 2013. The Equity share capital thus increased from Rs 22.32 Crs to Rs 23.44 Crs.
• In FY14, the fall in profit margin was due to sluggish demand scenario in the construction and infrastructure sector. Also the Company was not able to pass on the steel price hike fully to consumers in the later part of FY14.

Ashima Ltd
Textiles
FV – Rs 10; 52wks H/L – 21/6; TTQ – 54000; CMP (May 16, 2016; 11.30 am) – Rs 12.6;
Market Cap – Rs 54 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

The Equity capital does not include ~ 4,50,000 (13%) redeemable cumulative preference shares of Rs 100 each fully paid amounting to Rs 4.5 Crs and 1600000 (11%) redeemable cumulative preference shares of Rs 100 each fully paid amounting to Rs 16 Crs. Total Share capital of the firm equals to Rs 53.87 Crs.

Valuation Parameters

1. EV/EBITDA: 12.86
2. EV/Share: Rs 31
3. EV/Sale: 0.48
4. Market Cap/ Sale: 0.25
   

Overview:

• Ashima Limited is engaged in the textiles business.
• The Company manufactures and sells denim fabrics, and yarn dyed cotton fabrics.
• The Company’s divisions include Denim Division, Spinfab Division and Attires Division.
• The Company offers its products under ICON and Frank Jefferson brand names.
• The Company’s products include denims, shirting, bottom weights and interlinings.
• It offers the denim variants, such as open end denim, ring denim, slub denim, cross-hatch denim, stretch denim, fashion denim, polyester denim, Floc coated denim, linen denim and over dyed denim, among others.
• Its shirting products include yarn dyed shirting, piece dyed shirting and fully bleached white shirting.
• Its bottom weights include twills, chinos, gabardine, tussore, canvass and bedford cord structured fabrics. Its shirting range includes poplins, twills, cord, satin, combination weaves and dobby weaves.
• The Company offers interlinings in soft, medium and stiff finishes.

Denim Division ~ Performance of Denim Division has further deteriorated, faced limitations in product offering in changing customer preferences in a market plagued with problem of oversupply.

Spinfab Division ~ has cut losses, saw lower volumes, but higher sales to brands, which as a segment offers better margins, which led to its improved performance.

Other Problems faced by the company ~ ageing machinery, Inability to meet demand of higher credit in the markets due to constraints of working capital.

Rights Issue

• The Rights Issue had opened on November 18, 2015 and closed on December 2, 2015. On December 3^rd, HDFC Bank had filed an Interim application seeking inter alia attachment from funds collected in the Rights Issue and on the same day Debt Recovery Tribunal – II had passed an order of status quo until December 17, 2015.
• Later on, the Company on December 09, 2015 filed an application praying inter-alia rectification/modification of the said Order with DRT-II, Mumbai to enable all concerned parties to complete all formalities as per time lines prescribed in SEBI Circular dated April 22, 2010, more particularly the refund of excess amount received from rights share applicants pursuant to Letter of Offer dated October 28, 2015. DRT-lI vide order dated December 11, 2015 rejected the company’s prayer.
• The Debt Recovery Tribunal-II, Mumbai (DRT) on December 23, 2015 passed an order for continuing the status-quo till January 11, 2016.
• The Company subsequently filed a writ petition in the High Court of judicature at Bombay seeking appropriate reliefs against the orders of DRT and DRAT.
• HDFC Bank on February 2nd filed a writ petition at Bombay High Court, seeking to quash and set aside the said DRAT orders of January 27, 2016. This petition was heard on February 9th and 11th. Since the DRAT Order dated January 27th was not clear on certain aspects, the Company put forth its view that it would also file a writ petition as due to ambiguity prevailing in the Order, bankers to the issue have refused to act on the order and sought more clarity on refund aspect.
• In late February, the case moved to another Division Bench of High Court.
• The Company has taken the matter with the Bankers to the Issue ~ ICICI Bank and Yes Bank. ICICI Bank on April 14, 2016 agreed to lift the freeze and instructions were accordingly given by the Registrars to the Issue to ASBA banks to transfer subscription monies to Rights Issue account with ICICI Bank and to unblock the balance money being the refund(s) amount.
• Accordingly, all ASBA banks have unblocked the ASBA accounts, except Yes Ban and the subscription monies were transferred to rights issue account with ICICI Bank. However, Yes Bank belatedly on April 18, 2016 came up with a stand that they were still not clear on the clarification provided by the High Court Order and did not lift the freeze on rights issue account.
• Thus, the Non ASBA refunds and unblocking of ASBA with Yes Bank has remained pending. Therefore, the procedure relating to completion of refunds and allotment could not take place.
• Rights Issue Details ~ 80085089 Equity Shares of Rs 10 each for cash at par for an amount aggregating to Rs 80.09 Crs on a rights basis to the existing equity shareholders in the ratio of 24 Equity Shares for every 10 fully paid up equity sharesheld by the existing Equity Shareholders.
• The entire Proceeds of the Rights Issue amounting to Rs 80.09 Crs would be utilized towards part repayment of outstanding principal secured debt as per proposed scheme of arrangement.

Scheme of Arrangement

• The Company had a draft scheme of arrangement for reconstruction and compromise between the Company and its equity shareholders, preference shareholders and secured creditors with the Stock Exchanges and is in the process of filing the same with the Hon’ble High Court of Gujarat.
• This Scheme of Arrangement is proposed as financial reconstruction of the Company pursuant to Re-organisation of preference share capital and settlement of Outstanding Secured Debts of the Secured Creditors of the Company.

Management:

Mr Chintan N. Parikh is the Chairman & Managing Director

Shareholding Pattern as on March 31, 2016

The Equity Capital is @Rs 33.37 Crs consisting of 33368787 Equity Shares of FV Rs 10 currently held as under

3% of the promoter’s holding is pledged

Share Price Trend

Standalone Financial Trends ~ Amt in Rs Crs