Tube Investments invests in CG Power

by Free ModulesScrip Watch

 

Details on the Investment: 

Murugappa Group’s engineering firm Tube Investments picked up a controlling stake in CG Power & Industrial Solutions for Rs 700 crore.

CG Power has approved a proposal to issue shares and warrants on a preferential basis.

On 2nd September 2020, Tube Investments upped their investment by Rs 100 crs in the form 68.73 million equity shares of CG Power to be issued to TII at Rs 14.55 per equity share on a preferential basis. This will increase its stake to 58.58% 

Key Financial Data:

52 W H/L: 25/4.6

Market Cap: Rs 1558 crs

FV CMP Equity Capital Networth Total Debt Total Income PAT EPS BV
FY 20 2 25 125 -104 1661 5158 -2167 -34 -2
FY 19 125 2185 2729 8049 -507 -8 35

 

CG Power is engaged in engineering solutions and the power sector and has 13 manufacturing facilities.

The main reasons for losses in CG ower other than the loss from the Power Segment (Rs 222.3 crs)  are due to Exceptional Items (Rs 1788 crs) mainly A provision for a doubtful advancement for Rs 905 crs.  A (provision) of net assets of subsidiaries for Rs 468 crs and a  Liability on deconsolidation of HBE Group of Rs 341 crs. 

Brief History on the Fraud at CG Power: 

In August 2019, CG Power had reported a financial scam found in an investigation by an independent law firm where some employees had carried out unauthorised transactions, which led to an understatement of the liabilities of CG Power and advances to related and unrelated parties of the company and the group. The company said that total liabilities may have been potentially understated by Rs 1,053.54 crore for CG Power and Rs 1,608.17 crore for the whole group.

 As a result, the chairman of the group Mr Gautam Thapar was fired. 

Historical Price Chart: 

Oil India

by EquityScrip Watch

 

Oil India is the country’s second-largest hydrocarbon exploration and production public sector company

 

Financials: 

 

 

18/08/2020 52 W H/L: Rs 174/66 

Market Cap: Rs 10480 crs
Year CMP Fv Equity Capital Net Worth Long Term Debt Total Income PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2020 97 10 1084 28849 12670 13317 3815 266 35.19 2.75 0.36 56.66
2019 10 1084 28974 10755 14907 3238 267 29.86
2018 10 757 29030 10690 11708 2735 384 36.14

Despite a rising PAT, the overall Networth fell due to the loss in Value of Indian Oil amounting to Rs 3943 crs in FY 20 routed through the Equity Instruments through Other Comprehensive Income section

Dividend Payout Policy: 

 

Oil India has a steady dividend payout policy like all other public sector companies. Usually, the company declares a final dividend in August or September. 

 

Dividend Payout ratio: 9.2% (only the Rs 9 interim dividend paid in Feb 2020is considered) 

 

Calendar Year Total Dividend
2020 9
2019 10.25
2018 15
2017 14.25
2016 16
2015 20

 

Recent Updates: 

 

On Monday, August 17th 2020, Oil India managed to cap an oil well blow out during worker maintenance in Assam’s Tinsukia district after 83 days (since May 27th). 

A total of 29,475 Metric Tonnes of Crude Oil and 69.71 Million Metric st Cubic Meter of Natural Gas have been Ibst respectively as a result of protests/blockades/ bandhs in and around Baghjan area since 27th May 2020 due to the Blowout. Bioremediation activities in affected areas are in progress.

Due to this, the future production capacity of the company may be impacted in the near term. 

 

Historical Price Chart:

Top 10 shareholders :

 

  1.  Life Insurance Corp of India – 12.0 %
  2.  Indian Oil Corp Ltd – 4.9 %
  3.  ICICI Prudential Asset Management – 3.1 %
  4.  Reliance Capital Trustee Co Ltd – 2.6 %
  5.  Hindustan Petroleum Corp Ltd – 2.5 %
  6. Bharat Petroleum Corp Ltd – 2.5 %
  7. Vanguard Group Inc –  1.0 %
  8. BlackRock Inc –  0.8%
  9.  ICICI Prudential Life Insurance Co – 0.4 1%
  10. WisdomTree Investments Inc –  0.4 %

 

Factors affecting future performance and Share Price Movement of Oil India : 

  1. The recovery of the Indian economy and the subsequent revival of demand for natural gas
  2. The time taken to recover from the oil well blowout and restore production capacity
  3. The repercussions and the compensations that will be provided to those affected by the blowout
  4. Movement of Crude Oil Prices 
  5. If the government decides to disinvest further. 

 

Wabco India- Open Offer Details and Key Financials

by Equity

 

10/08/2020

WABCO 

Market Cap: 13273 Rs crs

52 Week H/L: 7018/5296 

Year

 CMP Fv Equity Capital Net Worth Long Term Debt Total Income PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
Q1 21 7000 5 9 1749 – 179 -31 922 -16.54 – 7.59
2019 7000 5 9 1780 – 2926 282 939 148.73 47.06 7.46 75
2018 7000 5 9 1526 – 2660 273 805 143.88 48.65 8.70

 

Wabco India is in the Commercial Vehicles Segment. The merger will help advance technologies and help innovate in the Commercial Vehicles segment. 

 

Details of the Offer:

The Open offer is for the acquisition of up to 4,741,900 (four million seven hundred forty-one thousand nine hundred only) fully paid-up equity shares of face value of ₹ 5 each of Wabco India limited (“target company”), representing 25%  of the total fully paid-up fully diluted voting equity share capital of the target company from the public shareholders of the target company by ZF Friedrichshafen Ag (“acquirer”) together with Wabco Asia private limited and LucasVarity. 

 

The offer price is Rs 7,067.51 per offer share, totalling to Rs 3351.34 crore.

Date of commencement of tendering period (Open Offer opening date) – 13th August (Thursday) 

Date of closure of tendering period (Open Offer closing date) – 26th August (Wednesday) 

 

Endurane Technologies and Varroc Engineering Comparison

by Free ModulesScrip Watch

Endurance Technologies and Varroc Engineering Ltd are held by twin brothers; Anurang and Tarang Jain. Both these companies have counted Bajaj Auto Ltd which belongs to their uncle as their biggest customers.

Varroc Engineering Ltd Endurance Technologies Ltd
CMP 194.4 886
FV 1 10
IPO Offer Price 967 472
List price 1032 572
Market cap 2627 12474
52 Week H/L 525/119 1201/562
2020 Financials
Equity Capital 13.4 140.6
Networth 3004.5 3006
Total Debt 2600 548
Total Income 11220 7537
PAT 2.5 495
BV 224 214
P/BV 0.9 4.1
EPS 0.2 35.2
P/E 1042 25
Promoter’s Holding %  85 75

Amounts in Rs Crs except for Ratios or stated otherwise

SBI Cards and Payments Services

by Scrip Watch

 

Market Cap: Rs 73,520 crs 

 

52 Week High/ Low: Rs 789/ 495

 

CMP: Rs 780

 

IPO Performance: 

 

During the quarter ended March 31, 2020, the Company had come up with an Initial Public Offering (IPO) of 137,149,314 Equity Shares of face value Rs 10 each comprising of a Fresh Issue of 6,622,516 Equity Shares and an Offer for Sale of 130,526,798 Equity Shares aggregating to Rs.1,034,0.8 crs.

 

SBI Cards did not perform very well at its IPO  and listed 13% below its offer price. 

 

List Date IPO Listing % Variance BSE 09/07/2020 % Variance
Price in Rs Price in Rs List Price over Price in Rs Current Price over
16-Mar-20 755 658 -13 780 3.3

 

Financials: 

 

SBI Cards showed a 14% rise in their Q1 profits this year due to higher interest income. There was also a 20% rise in their cards in force showing that they have acquired new customers even during the pandemic with the rate close to pre-pandemic numbers. 

Given the rise in cards and an increase in profits, it shows that the new cards distributed by them are being used. 

 

21/07/2020 SBI Cards
Year FV CMP Equity Net Worth Long Term Debt Total Income PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
Q1 2021 10 780 938 5734 2195 393 61 16.8 47 13 69.53
FY 2020 10 938 5341 16117 9752 1244 57 13.3 69.55
FY 2019 10 837 3587 12352 7287 864 43 10.3

 

For Q1 2021:

  1. P/E is annualised
  2. Networth is calculated 

 

Additional Data:

 

In accordance with the RBI Circulars dated March 27, 2020 and April 17, 2020 with regard to providing relief to borrowers on account of COVI D-19 pandemic, SBI Card has offered a moratorium on credit card dues to eligible borrowers in accordance with a Board approved policy. In this backdrop, The Company, based on current estimates, has created an additional management overlay on Expected Credit Loss (ECL) amounting to Rs 489.25 crs during the quarter and year ended March 31, 2020. 

 

BF Utilities (July 17, 2020)

by Free ModulesScrip Watch

BF Utilities

 

Market Cap: Rs  945 Crs

52 Week High/ Low: Rs 361/134 

 

Results: 

 

17/07/2020

BF Utilities
Year FV CMP Equity Capital Net Worth Long Term Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
2020 Standalone

5

 250 18.83 130.51 3.7 23.76 2.51 34.7 0.7 375.1 7.2 55.99
2019 Standalone

5

 250 18.83 128.1

7

 49.8 27.16 34.0 7.2 34.7

7.3
2019 Consolidated

5

 250 18.83 -59.3 1660.8 469.3 71.9 -15.7 19.1 13.1

–

2018 Consolidated

 5 250 18.83 -98.7 1580 411.6 36 -26.2 9.6 26.2 –

 

The consolidated statements for 2020 are yet to be issued 

 

Standalone Segment Earnings:

 

2020 Revenue
Infrastructure 0.77
Wind Power 19.25

 

5 Year Historical Price Movement: 

BF Utilities is an Indian Holding company belonging to the Kalyani group with investments in Infrastructure and Wind Power Generation. 

 

Its wind farm project consists of approximately 50 wind energy generators of over 230 kilowatts and approximately 10 WEGs of over 600 kilowatts. 

 

Its subsidiaries include:

Nandi Infrastructure Corridor Enterprise Limited (NICE): NICE has an interest in the Bangalore Mysore Infrastructure Corridor Project, which is an infrastructure development project. BMIC Project consists of over 40 kilometres Outer Peripheral Road and over 10 kilometres Expressway up to Bidadi.

 

Nandi Highway Developers Limited:  NHDL has built and operates over 30 kilometres bypass road connecting the twin cities of Hubli and Dharwad in North Karnataka

 

Avichal Resources Pvt. Ltd.

 

Recent News: 

Investor Radhakishan Damani picked up a 1.3% stake (491000 shares) in the June quarter. 

 

Ugro Capital

by Free ModulesScrip Watch

Ugro Capital

 

 Market Cap: Rs 692  Crs 

52 Week High/ Low: Rs 225/74

 

Year FV CMP Equity Capital Net Worth Long Term Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
14/07/202 Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2019 10 98.15 37.1 637 7 41.8 1.4 171.7 0.38 260 0.6 4.28
2018 10 98.15 4.6 37 3.5 2.9 80.4 6.30 16 1.2

 

 

Business Model : 

Ugro is focused on lending to small businesses and lends only to select sectors. Following the RBI direction to allow all borrowers to opt for a three-month repayment moratorium the NBFC has allowed its customers to avail of the moratorium. Due to COVID 19, the stress on NBFCs has gone up greatly especially MSMEs. This is the reason The share price has fallen significantly

2017-2020 IPOs (Update: July 8, 2020)

by Free ModulesIPOs, FPIs & OthersScrip Scan

The price variation of all companies that have come out with an IPO since 2017.

Company Name List Date IPO Listing % Variance BSE 09/07/2020 % Variance Bonus/Splits/Rights Date
Price in Rs Price in Rs List Price over Price in Rs Pre-adjusted Price Current Price over
IPO Price IPO Price
AAVAS Financiers 8-Oct-18 821 758 -8 1342 63.5 None
Affle India 8-Aug-19 745 929.9 25 1852.7 148.7 None
Amber Enterprises 30-Jan-18 859 1180 37 1570.05 82.8 None
Apollo Micro Systems 22-Jan-18 275 478 74 106 -61.5 None
Aster DM Healthcare 26-Feb-18 190 182.1 -4 123.15 -35.2 None
Astron Paper & Board 29-Dec-17 50 114 128 38.5 -23.0 None
Bandhan Bank 27-Mar-18 375 485 29 382.8 2.1 None
Bharat Dynamics 23-Mar-18 428 360 -16 383.65 -10.4 None
Chalet Hotels 7-Feb-19 280 291 4 140.1 -50.0 None
CreditAccess Grameen 23-Aug-18 422 385 -9 605 43.4 None
CSB Bank 4-Dec-19 195 275 41 191.9 -1.6 None
Embassy Office Parks REIT 1-Apr-19 300 300 0 340 13.3 None
Fine Organic Industries 2-Jul-18 783 815 4 1959 150.2 None
Future Supply Chain 18-Dec-17 664 674 2 182.65 -72.5 None
Garden Reach Shipbuilders Engineers 10-Oct-18 118 104 -12 221.2 87.5 None
General Insurance Co 25-Oct-17 912 850 -7 157.7 315.4 -65.4 Bonus issue 1:1 12/07/2018
H G Infra Engineering 9-Mar-18 270 270 0 194.05 -28.1 None
HDFC Asset Management 6-Aug-18 1100 1739 58 2490 126.4 None
HDFC Life Insurance 17-Nov-17 290 311 7 583.4 101.2 None
Hindustan Aeronautics 28-Mar-18 1215 1169 -4 12.47 -99.0 None
ICICI Securities 4-Apr-18 520 431.1 -17 100.43 -80.7 None
Indiamart Intermesh 4-Jul-19 973 1180 21 2255 131.8 None
Indian Energy Exchange 23-Oct-17 1650 1500 -9 157.81 1578.1 -4.4 Stock Split From Rs.10/- to Rs.1/- 22/10/2018
Indian Railway Catering & Tourism Corp 14-Oct-19 320 644 101 1386 333.1 None
Indostar Capital Finance 21-May-18 572 600 5 279.7 -51.1 None
Ircon International 28-Sep-18 475 410.3 -14 95.8 -79.8 Stock Split From Rs.10/- to Rs.2/- 03/04/2020
Karda Constructions 2-Apr-18 180 136 -24 62.5 -65.3 None
Khadim India 14-Nov-17 750 727 -3 122 -83.7 None
Lemon Tree Hotels 9-Apr-18 56 61.6 10 25.8 -53.9 None
Mahindra Logistics 10-Nov-17 429 432 1 326 -24.0 None
Metropolis Healthcare 15-Apr-19 880 960 9 1459 65.8 None
Mishra Dhatu Nigam 4-Apr-18 90 87 -3 217.3 141.4 None
MSTC 29-Mar-19 120 111 -8 169 40.8 None
Neogen Chemicals 8-May-19 215 251 17 561.5 161.2 None
New India Assurance 13-Nov-17 800 748.9 -6 116.8 204 -74.5 Bonus issue 1:1 27/06/2018
Newgen Software Tech 29-Jan-18 245 253 3 172 -29.8 None
Nippon Life India Asset Mgt 6-Nov-17 252 294 17 294.35 16.8 None
Polycab India 16-Apr-19 538 633 18 848.1 57.6 None
Prince Pipes & Fittings 30-Dec-19 178 160 -10 112.4 -36.9 None
Rail Vikas Nigam Ltd 11-Apr-19 19 19 0 20 5.3 None
Rites 2-Jul-18 185 190 3 259 323.75 75.0 Bonus issue 1:4 08/08/2019
Sandhar Technologies 2-Apr-18 332 345 4 223 -32.8 None
SBI Cards & Payment Services 16-Mar-20 755 658 -13 698.6 -7.5 None
Shalby 15-Dec-17 248 237 -4 74.65 -69.9 None
Spandana Sphoorty Financial 19-Aug-19 856 824 -4 636.65 -25.6 None
Sterling & Wilson Solar 20-Aug-19 780 700 -10 244.75 -68.6 None
TCNS Clothing Co 30-Jul-18 716 715 0 358.4 -49.9 None
Ujjivan Small Finance Bank 12-Dec-19 37 58 57 41 10.8 None
Varroc Engineering 6-Jul-18 967 1032 7 222.35 -77.0 None
Vishwaraj Sugar Industries 15-Oct-19 60 61.2 2 84.5 40.8 None
Xelpmoc Design and Tech 4-Feb-19 66 56 -15 73.5 11.4 None

Shri Renuka Sugar Ltd. (June 19, 2020)

by Equity

 

 

Sugar

FV – Rs 1; 52wks H/L – 10.91/3.2; TTQ (Lac) – 3.47; CMP – Rs 7.69 (As On June 19, 2020); Market Cap – Rs 1474.03 Crs

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

Shri Renuka Sugars Ltd
Year Equity Capital Net Worth Long Term Debt Total Sales PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
2019/20 (9M) 192 1744 2228 3504 2095 9.10 10.93 0.53 0.85 50.03
2018/19 192 -3008 2524 4718 -2037 -15.69 -10.63 – – 50.05

 

One off profit from discontinued operations was Rs 2516 Cr for 9m FY20

 

Peer Comparison:

 

Shri Renuka Sugar (9m) Triveni Engg Balrampur (9m) Dhampur
Price (Rs) 7.69 53.9 128.9 129.7
FV (Rs) 1 1 1 10
Market Cap 1474 1336 2836 861
Equity 192 25 22 66
Net Worth 1744 1339 2173 1362
Total Debt 2228 1387 1526 1617
Sales 3504 4473 3019 3556
Net Profit 2095 335 278 216
EPS (Rs) 10.9 13.5 12.6 32.4
BV (Rs) 9.1 54.0 98.8 204.9
PE 0.5 4.0 7.7 4.0
PB 0.8 1.0 1.3 0.6
Crushing Capacity(TCD) 37500 76500 45500
Tonnage (MT) 1.01 0.483 0.766

 

Triveni Engg Crushing Capacity : 8.5 MT for fy 2020

  

 

Price Chart: 

About the Company :

 

Since 2019, Wilmar Sugar Holding Pte.Ltd has become the holding Company by acquiring 58.34% of stake

 

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. 

Sugar: The Company operates seven sugar mills in India with a total crushing capacity of 7.1 MTPA or 37,500 TCD and two port based sugar refineries with capacity of 1.7 MTPA.

 

Ethanol: The Company manufactures fuel grade ethanol that can be blended with petrol. Distillery capacity is 930 KLPD (630 KLPD from molasses to ethanol and 300 KLPD from rectified spirit to ethanol).KBK Chem-Engineering (100% subsidiary) facilitates turnkey distillery, ethanol and bio-fuel plant solutions

 

Power:The Company produces power from bagasse (a sugar cane by product) for captive consumption and sale to the state grid in India. Total Cogeneration capacity is 242 MW with exportable surplus of 135 MW.

 

Segment

FY 19

 Contribution % Amount (Rs. Crs)
Sugar 77.16 3689.37
Ethanol 11.06 528.63
Co Generation 8.46 404.49

 

Recent News: 

In a regulatory filing on June 3, the company said its board approved the proposal for raising funds from its holding company Wilmar Sugar Holdings through external commercial borrowings (ECB) to refinance existing debts.

“The board also passed resolutions for increasing the borrowing limits under Section 180(1)(c) of the Companies Act, 2013 (the Act) from the existing Rs 6,000 crore to Rs 10,000 crore, and the corresponding limits for creating a charge on the assets of the company to secure such borrowings under Section 180(1)(a) of the Act,” the company said.

Indiabulls Real Estate

by Scrip Watch

Indiabulls Real Estate to merge with certain Embassy Properties:

 

On 31st January 2020, the board of Indiabulls Real Estate  in-principally approved the proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Embassy Property Developments Private Limited with IBREL. 

 

Embassy is in discussions with financial investors such as The Blackstone Group Inc. and others to raise up to $200 million before the Merger. This equity investment of USD 200 million will bring significant cash in the merged entity i.e. IBREL + Embassy.

 

Under the proposed Merger, certain ongoing, completed and planned residential and commercial projects of Embassy will get merged and stand transferred to IBREL. Some of Embassy assets are presently owned by entities managed and controlled by it jointly with Blackstone, for which it is in discussions with Blackstone to contribute such assets as part of the merger transaction. 

 

Under the proposed Merger, IBREL will issue its equity shares of face value of INR 2 each to the shareholders of Embassy, in accordance with the swap ratio as would be approved by the Board of both the Companies, resulting into the following shareholders segment in the Merged IBREL, post effectiveness of the proposed Merger: 

(i) IBREL’s existing shareholders 

(ii) Embassy shareholders’ i.e. Embassy promoters, Blackstone / financial investor(s) etc. 

 

The proposed Merger is aimed to be achieved through a cashless scheme of amalgamation.


Current Financial Position of Indiabulls Real Estate:

 

CMP (07/02/2020): Rs 92.5

Face Vale: Rs 2

Market Cap: Rs 4205 Crores 

52 Week High /Low: Rs 151/38

Promoter’s Holding: 23.38%

 

Embassy Property Developments Pvt. Ltd. holds 13.89% of the Company 

 

INDIABULLS REAL ESTATE
Year Equity Capital Net Worth Long Term Debt Short Term Debt Total Sales PAT BV EPS P/E P/BV
Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs. Rs
H1 20 90.93 3546 1478 2820 1971 181 78.0 4.0 23.2 1.2
FY 19 90.13 3998 3405 1015 5222 504 88.7 11.2

 

Post Merger Equity Position:

 

Proposed Investment Amount: $ 200 million or Approximately over Rs 1400 crores. By issuing fresh capital the intent is to transfer the management of the company to Embassy allowing Sameer Gehlaut to reduce his stake and allow him to conduct business in the financial services space.