All posts by : Khyati Shah

Subros Ltd
Auto Parts & Equipment
FV – Rs 2; 52wks H/L –113.8/51; TTQ – 63 K; CMP – Rs 109(As On December 22nd 2015; ) ;

Market Cap – Rs 657 Crs                        

Standalone Financials and Valuations for H1 FY16 (Amt in Rs.Crs unless specified)

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

Overview:

Subros Limited is a manufacturer of thermal products for automotive applications in India. The Company manufactures compressors, heating, ventilation and air conditioning (HVACs), piping and heat exchangers to suit various vehicle configurations. The Company’s product range spans across auto air-conditioning and engine cooling systems for passenger, as well as commercial vehicles. The Company provides a range of bus air conditioners and transport refrigeration solutions. The Company’s air conditioners range from 4 kilowatt to 36 kilowatt capacity suitable for ambulances and buses of 4 meters to 12 meters. The Company’s transport refrigeration solutions are suitable for storage volume up to 50 cubic meters. The Company has developed import substitute for driver cabin air conditioning for diesel locomotives of railway engines.

Management:

• Mr. Ramesh Suri – Chairman
• Ms. Shradha Suri – MD

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs.Crs) :

Geometric Ltd
IT Consulting & Software
FV – Rs 2; 52wks H/L – 207/101; TTQ – 69000; CMP (December 18, 2015)– Rs 175.5;

Market Cap – Rs 1138 Crs

Consolidated Financials and Valuations for H1FY16 (Amt in Rs.Crs unless specified)

*Virtually debt free.

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

Key Updates:

• Launched a next generation collaboration solution, Geometric EDGE® to enable design and engineering data exchange between OEMs, partners, and joint ventures for global engineering.
• Alliance with PDTec, a leading provider of software and services for enterprise wide collaboration in product development.
• Signed a multi-million multi-year PLM engagement with a leading Oil & Gas technology company.
• Entered into a contract for next generation CAx solution for a manufacturer of orthodontic solutions in North America.
• Won a manufacturing engineering deal with a key robotics and factory automation tools manufacturer.
• Awarded a PLM services project with a leading Aerospace player in Europe.
• Signed an engineering services project with a leading North American Automotive OEM.
• The order book comprises of USD 12.14 Million as of Q2 16.

Overview:
Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services, Product Lifecycle Management (PLM) solutions, Embedded System solutions, and Digital Technology solutions enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle. Listed on the Bombay and National stock exchanges in India, the company recorded consolidated revenues of Rupees 11.05 billion (US Dollars 180.61 million) for the year ended March 2015. It employs over 4800 people across 13 global delivery locations in the US, France, Germany, Romania, India, and China. Geometric has been assessed at Maturity Level 3 for CMMI 1.3- Development and CMMI 1.3-Services for its Software and Engineering Services business units and is ISO 9001:2008 certified for engineering operations. The company’s operations are also ISO 27001:2005 certified

Bulk Deals:

Management:

• Manu Parpia – MD & CEO
• Shashank Patkar – CFO

Shareholding Pattern as on September 30, 2015
The Equity Capital is @ Rs. 12.89 Crs consisting of 64667646 Equity Shares of FV Rs 2 currently held 

None of the promoters’ holding is pledged

Major Non-Promoter Holdings:

Consolidated Financial Trend ~ Amt in Rs. Crs

Kirloskar Pneumatic Co Ltd
Capital Goods Equipment Manufacturer
FV – Rs 10; 52wks H/L –730/434; TTQ – 1372; CMP (Dec 16, 2015) –Rs 690.75; Market Cap – Rs 880 Crs

Standalone Financials and Valuations for H1FY16 (Amt in Rs Crs unless specified)

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

The share price of Kirloskar Pneumatic Co Ltd has moved up by 42% in last two months from Rs 484.8 (16/10/2015) to Rs 690.75 (16/12/2015).

The company has no long term debt.

Pneumatic Holdings Ltd has become the holding company of Kirloskar Pneumatic Company Ltd from September 2015 onwards.

The company attributes decline in the revenue to lack of investments in major sectors such as Oil & Gas, Power, Steel, Cement, Railways and Defence.

The company had bagged and executed significant projects during the period 2010-13. This was the time when oil and gas sector went in for modernization of the facilities and capacity additions. However since 2013 there has not been any significant investment in this sector by both the Government as well private sector. CNG stations have not grown in the recent past due to infrastructure issues and policy guidelines. Coupled with this oil and gas prices globally went down.

The company believes FY 16 to be a year of a transition for Oil & Gas sector. In order to de-risk this challenge of growth, the company has set up an International Business Division. The company has been approved by major consultants and contractors in Middle East and South East Asia. The Company’s management is overall positive on this development, “A team of sales and marketing is travelling to the region and promoting KPCL capabilities. Cold chain market is expected to grow at 10% annually. However implementation of government programmes for developing this market will have to be watched carefully. Your company, with its extensive distribution network and delivery process is confident of seizing the opportunity as and when they appear. Industrial markets will see upturn in next two to three years. Company has invested into developing new technology products. This will offer a competitive edge to regain its leadership position. To reach to smaller markets, company has been expanding dealer network aggressively. This will enable to increase market access and reach. The Government of India is aggressively modernizing defence installations. Your company with strong references expects to play an important role in this “Make in India” programme. However delays in finalizing orders may dampen the demand. Your company expects more international players to start business in India. But your company is strongly poised to take on this competition.”

Overview:
Kirloskar Pneumatic Company Limited is engaged in the manufacture of compressors, gears and gear boxes. It operates in two segments: Compression Systems and Transmission Products.

Its Compression Systems segment offers products, which include air, gas and refrigeration compressors, packages and systems, to the oil and gas, cold chain and other industrial markets. The Company offers refrigeration and gas compression systems for refineries, petrochemical plants and compressed natural gas (CNG) stations; ammonia compressor and packages for the cold store units, dairy units and pharmaceutical plants; air compressors and packages for cement, steel, power, and engineering and other markets, and heating, ventilating and air conditioning systems and air compressor packages for defence sector. Its key customers include ONGC, Reliance, Jindal, BPCL, HPCL and Shell.

The Company’s Transmission Products segment offers traction gears, customized gearboxes and specialized products for Indian Railways, wind power projects and other industrial markets. It serves locomotive manufacturing units of Indian Railways. However demand for railways gears and pinions was lower by 24% in FY 15, due to excessive inventory at locomotive works. KPCL has been manufacturing and selling gearboxes for wind turbines. These gear boxes can be classified into kilowatt class and megawatt class. Company is a leader in kilowatt class gearbox. For last two years new wind farm projects are very few. With a change in the Government policy on wind power projects the demand for gearbox has reduced substantially. Company’s major customers in this sector have gone bankrupt and closed down. This market is not expected to grow in FY 16 as well.

KPCL also serves defence sector with products like HVAC (heating, ventilation, and air conditioning) systems and air compressor packages. This is a tender based business and includes new equipment as well as service business. During the year 2014-15 this business dropped by 28% owing to delays in finalizing orders.

Management:
Mr Rahul C. Kirloskar is the Executive Chairman
Mr Aditya Kowshik is the Managing Director

None of the promoter’s holding is pledged

Consolidated Financial Trends ~ Amt in Rs Crs

Segmental Results ~ Amt in Rs Crs

Dr. Lal Pathlabs Limited

Recent Updates:

IPO momentum: Dr Lal PathLabs, Alkem big hits in the grey market

Overview:

Dr. Lal PathLabs Limited is a Delhi based provider of diagnostic and related healthcare tests and services in India. Through its nationwide network, company offer patients and healthcare providers a broad range of diagnostic and related healthcare tests and services for use in core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions.
Company has built a national network consisting of its National Reference Laboratory in New Delhi, 171 clinical laboratories, 1554 patient service centers and over 7000 pickup points as of September 30, 2015.
Company’s customers include individual patients, hospitals and other healthcare providers and corporate customers.

It is a debt free company having internal accruals of Rs.235 Crs.

Highlights:

1. Company offers 3,368 diagnostic and related healthcare tests.
2. Company collected 21.8 million samples from 9.9 million patients in FY 2015.
3. Company is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.
4. Its centralized information technology platform fully integrates to it network and is scalable.

Promoters:
        1. Dr. Arvind Lal
2. Dr. Vandana Lal

3. Eskay House

Consolidated Financial Trend ~ Amt in Rs Crs

Marico  Ltd
Personal Products
FV – Rs 1; 52wks H/L –466.3/301.3 ; TTQ – 51 K; CMP – Rs 402.55(As On November 06, 2015; 15:30) ;                     

       Market Cap – Rs 25967 Crs

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

Consolidated Financials and Valuations for H1 FY16

      *The profit on sale of divestment in the company’s subsidiary of Rs.9.62 Crs has been included in other income.

 Key Updates:

• The company’s domestic business grew by 26% and international business grew by 10% in FY 14-15.
• The company’s rural sales are at a faster pace to 32% as compared to urban sales of 23% by increasing its rural reach by 25% to 50000 villages in last two years.
• The company launched its new project called ONE (Outlet Network Expansion) for increasing direct coverage in top six metros.
• The company has low long term debt and Return on Equity of 31%.
• The company has maintained a healthy dividend payout ratio.

Overwiew:

Marico Ltd is engaged in the business of branded consumer products and services. The Company operates in two segments: Consumer Products and Others. Its Consumer Products include Coconut oils, other edible oils, hair oils and other hair care products, male grooming products, fabric care products, healthy foods, soaps, health care products and female beauty care products. Others segment is engaged in skin care. In India, Marico Limited manufactures and markets products under the brands such as Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive, Manjal, Setwet, Zatak and Livon. Marico’s international portfolio includes brands such as Parachute, Hair Code, Fiancee, Caivil, Hercules, BlackChic, Code 10, Ingwe, X-Men, L’Ovite and Thuan Phat. It is present in Skin Care solutions business under the brand name Kaya in India and international markets and the brand Derma Rx in Singapore and Malaysia. The Company currently present in 25 countries.     

Management:

• Saugata Gupta – MD & CEO
• Vivek Karve – CFO

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The company raised capital amounting to Rs.500 Crs on preferential basis and investors were allotted 29411764 equity shares of FV Rs.1 each at a share premium of Rs.169 each on 16^th May,2012 which resulted in increase in Equity share capital.

Risks:

• Changing consumer Preferences.
• Product Innovation and New Product Launches.
• Foreign Currency exposure as export oriented company.
• Competition and Political Risks.
• Accquisitions and Retention.

JK Tyre & Industries Ltd
Auto Tyres & Rubber Products
FV – Rs 2; 52wks H/L –162.95/78.25 ; TTQ – 66 K; CMP – Rs 102.25 (As On September 28th 2015; 10:20) ;                       

     Market Cap – Rs 2329 Crs

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

 *On 18^th Dec, 2014 Stock Split from Rs.10 to Rs.2.

Consolidated Financials and Valuations for Q1 FY16

Key Updates:

• JK Tyre has has signed a binding agreement withBK Birla flagship Kesoram Industries to acquire 100% equity in a tyre unit in Haridwar for Rs.2200 Crs.
• The company has established 17 Truck Radial Tyre Care centres, which operate along all major National Highways on 365 day, 24*7 basis.
• It has also established 16 truck radial total solution showrooms branded “truck Wheels”.
• The first company to introduce unique concepts like “Dial-a-Tyre” and only company to launch 24*7 on-road tyre assistance initiative called “Fix-a-Tyre”.
• JK Tyre is expecting its Rs.1430 crore expansion plan near Chennai and is expected to be completed by mid-2015.

Overwiew:

Part of the JK Organisation, JK Tyre & Industries Ltd is a leading tyre manufacturer in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the four wheeler automobile industry. The company has global presence in 100 countries across six continents with six plants in India and three in Mexico. Currently, the capacity across 9 plants exceeds 20 million tyres per annum. The company is the leader in Truck Bus Radial Segment. JK Tyre offers tyres for –

• Truck/Bus
• LCV
• Passenger Cars
• MUV
• Tractors

The company is the manufacturer of India’s largest OTR tyre weighing 3.7 tons and 12 feet high. The nationwide network comprises of 143 selling locations, 4000 dealers and over 120 retail outlets.

Clientele & Partners :

• Maruti Suzuki
• Honda
• Ashok Leyland
• General Motors
• Eicher
• Volvo
• Volkswagon
• Nisaan
• Caterpillar India

        Bulk Deals:    

Management:

• Raghupati Singhania – CMD.
• Bakul Jain – Director.
• Ashok Kumar Kinra – CFO.

The Equity Capital is @ Rs.45.36  Crs consisting of 226813480 equity Shares of FV Rs 2 currently held as under

None Of the Promoter’s Holding is Pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

Peer Comparison:

INOX Leisure Ltd
Speciality Retail
FV – Rs 10; 52wks H/L –269.6/145 ; TTQ – 13 K; CMP – Rs 224.05 (As On September 21st 2015; 14:30) ;                          

  Market Cap – Rs 2161 Crs

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

Consolidated Financials and Valuations for Q1 FY16

Overwiew:

INOX leisure Ltd is a part of the INOX group of companies which has diversified interests and a significant market leadership position across various verticals, including industrial gases, chemicals, refrigerants, engineering plastics renewable energy and entertainment. INOX Leisure is the second largest operator in the country today, 1^st being PVR. Over the last decade the company has aggressively scaled up through organic and inorganic expansion from two properties and 8 screens in FY03 to a whopping 383 screens and 99 multiplexes till today. The company accounts for about 19% of the multiplex screens in India and about 7% share of aggregate domestic box office collections in the country. The company has built a very strong brand reputation with its premium multiplex properties, state of the art technology, unmatched service and ambience.

       Key Updates:

• The company has strong partnerships with over 50 leading Indian and global brands offering a huge potential for advertising and other ancillary revenue growth.
• The company expects robust results in the second quarter with movies like Baahubali, Bajrangi Bhaijaan, Dhrishyam, Brothers, Mission Impossible 5, Phantom etc. hitting the box office collections.
• The company in future wants to focus on the growth of high margin segments of cinema advertising and Food & Beverages.
• The Indian film industry expects growth touching Rs. 204 Billion in revenues by 2019 with a CAGR growth of 10.6%.
• Cinema advertising is a 490 crore market, projected to reach 1,382 crore by 2019.
• The advertisement revenue/screen has improved from ` 0.8m/screen in FY2011 to ` 2.3m/screen in FY2015.
• Food & Beverage spend per head has increased to Rs.55 from Rs.41.
• The company has issued paperless tickets in few cities.

Block Deals:

 Bulk Deals:

Management:

• Deepak Asher – Director
• Alok Tandon – CEO
• Upen Shah – CFO

The Equity Capital is @ Rs 96  Crs consisting of 96457754 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) :

Peer Comparison:

        Risks:

• Ticket pricing and show timings regulated by some States.
• High taxation restrains sector’s growth. ( High Entertainment tax)
• Timely execution of expansion plan.
• Cable and satellite rights.
• Direct competition from peers.

Kovai Medical Center & Hospital Ltd
Electric Utilities
FV – Rs 10; 52wks H/L –928.25/308 ; TTQ – 2 K; CMP – Rs 799 (As On September 1st 2015; 14:04) ;                           

 Market Cap – Rs 871.02 Crs

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

Standalone Financials and Valuations for Q1 FY16

Overwiew:

Kovai Medical Center and Hospital Ltd (KMCH) is an India-based company engaged in the running of hospitals. The Company’s hospital provides facilities, such as medical facilities, surgical facilities, diagnostic facilities, rehabilitation centers and a wellness center. It consists of 20 operation theatres and medical paraphernalia including Varian Trilogy Linear Accelerator, Positron emission tomography–computed tomography (PET-CT) Scan, 3T (magnetic resonance imaging) MRI, 500 slice Volume CT Scanner, Endo Bronchial Ultra Sound (EBUS), 4D Ultra Sound Scanner, Bi Plane Cath Lab, Cardiac Electrophysiology Lab, Bone Mineral Densitometer, Digital Mammography, Laser equipment, Video Endoscope and Operating Microscope, Auto analyzer, Computer Assisted Navigation for hip and knee replacements, and Laser for removal of kidney stones.

Major Non-Promoter Holdings:

Orient Green Power Company Ltd
Electric Utilities
FV – Rs 10; 52wks H/L –20.10/11 ; TTQ – 2.43 Lacs; CMP – Rs 11.11 (As On August 25th 2015; 12.10) ;                        

    Market Cap – Rs 631.13 Crs

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

Consolidated Financials and Valuations for Q1 FY16

Triggers:

• Generation Based Incentive (GBI) has been notified which would entitle the company to get a benefit of up to Rs. 10 Million per Mw on 75.6Mw leading to improved viability.
• Government Offers Tax Incentives (such as Tax holidays, Accelerated Depreciation etc.) and Non – Tax Incentives (Feed In tariff, Capital Grants, Rebates On equipments etc.)
• Major non tax Incentive is Renewable Energy Certificates ( RECs are generation-based ‘certificates’ awarded (electronically, in demat form) to those who generate electricity from renewable sources such as wind, biomass, hydro and solar, if they opt not to sell the electricity at a preferentially higher tariff. These certificates are trade-able on the exchanges and are bought by ‘obligated entities’, who are either specified consumers or electricity distribution companies. These obligated entities may either required to purchase a certain quantum of either green power or RECs. Trading happens on the last Wednesday of each month. Within the obligation, there is a small slice carved out for solar-RECs, or RECs from solar power generators.)
• The company is also working on ways towards reducing the fuel cost for its biomass business and has already taken steps such as entering into contract farming agreement with farmers for ensuring stable and consistent supply of fuel.
• Currently , a 20 MW biomass Project in Kolhapur, Maharashtra , 8.4 MW wind project In Gujarat and 7.2 MW wind project In Andhra Pradesh are under construction and plans to develop wind projects Of 70 MW by March 2015.

Recent Updates:

• On 19^th August,2015 the company informed that it would raise Rs.100 Crs from Edelweiss Group Companies (EW Special Opportunities Fund II Pte Ltd, Ecap Securities Ltd and Forefront Capital Management Pvt Ltd.) and the promoters will subscribe to shares worth Rs 150 Crs through SVL Ltd (formerly known as Shriram Industrial Holdings Ltd) and its subsidiaries.
• India has become the world’s third largest market (in terms of generation capacity) surpassing Japan and Russia in 2013 and current installed capacity as of March 2015 stood at ~268 Gw.
• The Government is also planning on constructing 1,07,440 circuit kilometres of transmission lines by 2016-17 as India’s energy consumption has been increasing fastest due to population growth and economic development.

Overwiew:

Orient Green Power Company Limited (OGPL) is one of India’s leading independent renewable energy-based power generation company focused on developing, owning and operating a diversified portfolio of renewable energy power plants. The Company’s portfolio includes Wind and Biomass energy assets at various stages of development. Headquartered in Chennai, Tamil Nadu, OGPL benefits from the support and commitment of the Shriram Group. The other major shareholders are Bessemer Venture Partners through Bessemer India Capital Limited and Olympus Capital through AEP Green Power Limited. The identified Biomass undertaking of the Company will get demerged into BGPL, a subsidiary of the company , effective October 1, 2015.

The Company had raised an IPO on 9^th October,2010 Of Rs. 900 Crs priced at Rs.47 per share to fund capacity expansion and repayment of debt.

       Segment Analysis :

1. Biomass Energy Business:

• The company is a clear market leader with an installed capacity of 106 Mw.
• Generated revenues worth Rs.153 Crs .

The Units in Tamil Nadu were facing issues of fluctuating fuel costs and lack of adequate cost effective fuel in some units which led to shut down of these units for some period of time.

2. Wind Energy Business :

• The company has a total installed capacity of 435 MW.
• Generated revenues worth Rs.340 Crs.

Delay of over three weeks for the onset of the wind season impacted the wind business in Q1 FY15.

Capacity Expansion Trend: (In Units MW)

 Management:

• Mr. N Rangachary – Chairman
• Mr. S Venkatachalam – MD
• Mr. K. V Kasturi – CFO

Bulk Deals:

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs)

*During the year 2013-2014 fresh issue of 100000000 shares was made of face value Rs 10 each.

Risks:

• Dependent On Governmnent Policies to a greater extent and regulatory Issues related to Incentives.
• High Financed Costs.
• High feedstock prices/low quality due to heavy rains for its Bio-mass plants.
• Increase in Levy Charges in Tamil Nadu for Wind Business.
• Largely Dependent On nature which is unpredictable and uncontrollable.