Kalyani Steels Ltd
Iron & steel
FV – Rs 5; 52wks H/L –205/107.4; TTQ – 12 K; CMP – Rs 183.5(As On July 8th 2016; 12:00) ;                           

 Market Cap – Rs 801.03 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 – 0.19
2. ROE % – 19.26
3. Market Cap/Sales – 0.68

Overview:

• Kalyani Steels Ltd is a supplier of forging quality steel for a range of automotive applications, such as crankshaft, camshaft, connecting rods, gears, transmission shafts, axle beams and steering knuckles.
• The Company’s steel is used in commercial vehicles, passenger cars, as well as construction equipment.
• The Company also manufactures rounds for seamless tubes and supplies steel to all seamless tube producers.
• The Company offers a range of carbon alloy steel and low electricity resistivity (LER) steel.
• The Company also supplies high quality medium carbon, high carbon, medium alloy and micro-alloyed steels for a range of applications in energy, railways, defense, fasteners and material handling, among others.
• The Company manages and operates the composite Steel manufacturing facility at Ginigera.

HOSPET STEELS is a World Class Steel plant set up by way of strategic alliance between M/s Mukand limited of Mumbai and M/s Kalyani Steels Limited of Pune.

The Company has increased its Equity stake in Lord Ganesha Minerals Private Limited (LGMPL) from existing 50% to 77.50% and as a result LGMPL has become a ‘Subsidiary’ of the Company.

Kalyani Steels look at price cuts after China’s yuan devaluation

(http://in.reuters.com/article/india-steel-idINKCN0QI0XQ20150813?type=companyNew)

Raw material cost to be higher in Q1 FY17

http://www.moneycontrol.com/news/business/raw-materials-cost-to-be-higherq1fy17-kalyani-steel_6876301.html

China dumping is hurting domestic industry badly, said RK Goyal, MD, Kalyani Steel, adding that cutting prices further would lead to additional losses.

http://www.moneycontrol.com/news/business/domestic-inddilemma-%E2%80%93-to-cut-prices-or-prod-kalyani-steel_5017321.html

Management:

• Mr. R. K. Goyal – CMD
• Mr. B.M. Maheshwari – CFO

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs.Crs) :

52 Week high was Rs 39+ a year ago in July 2015 & 52 Week Low was Rs 13 this April 2016

The Market Cap from @ Rs 500 crs a month ago is now kissing Rs 1000 crs

It was earlier called Indiabulls Securities Ltd

The uptick has been brilliant in quick time & the writing has been on the wall.. read that as Company Notifications on the BSE & NSE in the past few months

May 13, 2016 ~ Granting of 9.5 Million Stock Options at an exercise price of Rs 16 (current price at the time) under the ESOS 2009

June 15, 2016 ~ Board Approval of a Preferential Issue of  58.3 m Convertible Warrants to Promoters & CEO at exercise price of Rs 19.75

June 20, 2016 ~ EGM Notice for July 15, 2016 to pass the Preferential Issue as above & SALE OF INVESTMENT 

July 2, 2016 ~ Granting of 19.7 M Stock Options at an exercise price of Rs 24.15 (price a few days ago) under ESOSs 2008 & 2009

So what’s the Big Deal ?

Big Deal is being planned to happen & that’s disclosed in the June 20, 2016 Notification of SALE OF INVESTMENT for improving liquidity & reduction of debt purpose which is Item No 2 and relevant part extracted as below

“….to sell upto 100% of shares held by Indiabulls Distribution Services Limited, a wholly owned subsidiary of the Company (“IDSL”), in India Land and Properties Limited, a wholly owned subsidiary of IDSL, on the terms and conditions, including the consideration, which shall be more than the amount invested by IDSL, in such shares, as the Board may finalize” 

This actually is the Sale of One Indiabulls Park,Ambattur, Chennai which was bought in November 2014 at @ Rs 600 crs from Madrid Based NRI Investor Harish Fabiani (he’s also invested in Edelweiss & Indiabulls Group Companies + others)

FY 15 Consolidated Accounts as on March 31, 2015

Consolidated FY 15 Accounts of Indiabulls Ventures Ltd shows Net Fixed Tangible Assets at Rs 550 crs  of which 77% is this Property reflected  with a aggregate value of Rs 426 crs ~ Rs 320 crs for the Building + Rs 15 crs for Furniture + Rs 91 crs for Plant & Machinery

Long Term Debt at March 31, 2015 was Rs 331 crs, all of which relating to the One Indiabull Park Property ~ 150 crs 10 year (monthly EMI) Lease Rental Discounting Facility + Rs 185 crs 5 year Loan Against Property

FY 15 also shows Goodwill on Consolidation of Rs 109 crs, most of which is related to this property acquisition by subsidiaries

FY 16 Consolidated Accounts as on March 31, 2016 reveal :

• Networth was Rs 332 crs with FV Rs 2 Equity at Rs 58.57 crs giving a Book of Rs 11.3 per share
• PAT was Rs 74 crs (half of FY 15 PAT of  Rs 151 crs) on Sales of Rs 376 crs (Largely Rs 312 crs from Broking + Rs 55 crs from Lease Rentals) with Finance Costs at Rs 148 crs (FY 15 were just Rs 61 crs) ~ EPS computes to Rs 2.5
• Long term Debt had moved up to Rs 392 crs while Short Term Debt was up from Rs 1353 crs to Rs 1708 crs
• Fixed Assets had moved up to Rs 575 crs & Goodwill to Rs 122 crs

So if the Chennai Property is being sold, what will be the Consideration ? ~ as per Item 2 of the Agenda of the EGM on July 15,2016 it has to be more than the Cost which was Rs 600 crs => @ Rs 3000/sq feet for the 10 acres Land + three 16 storey’s Commercial Buildings offering 2 m sq feet on commercial rent on the Plot

So what will they get for this one & a half year from purchase ? ~ Rs 700 crs or Rs 800 crs or….?

Why are they selling the property so soon after purchase? ~ getting a good price or not contented with low lease rentals flow & less than full occupancy rate or tightening of liquidity & margins in broking related activities or….

Whatever… Company will become Long Term Debt Free ~ Proceeds will wipe out full Long term Debt & reduce Short Term Borrowings …. Finance Costs will reduce significantly …. Company will be on a stronger platform with Own Funds of a few Hundreds of Crores to scale up business operations…they can create fresh leverage on this to scale up faster

The Dilution in Equity too will be significant on exercise of Stock Options & the Preferential Issue ~ the recent notifications show fresh new equity of 8.75 crs shares. Incremental Equity of  Rs 17.50 crs will be created …. Equity will cross Rs 76 crs on this fresh grants (when option exercised) and issue (when converted)… Reserves will be pumped up by over Rs 160 crs on the premium…. Thus Networth of Rs 332 crs from FY 16 end will move up to Rs 510 crs

Assuming Rs 750 crs sale price of Chennai Property the Gross Proceeds work out to over Rs 25/share on current Equity & @ Rs 20/share on diluted Equity

Book Value will move up smartly from FY 16’s Rs 11.3 despite Fresh Equity Dilution (assuming employees, promoters & CEO opt for the shares at their Exercise Price in FY 17 itself) as exercise price is higher than current Book Value…. it will further strengthen with the Net Gains after Tax effect on Sale of Chennai property + FY 17 Normal Higher Earnings (advantage of lower Finance Costs indicated)

FY 17 should show an extraordinary high EPS on account of the sale + FY 18 onwards should grow normal EPS significantly from FY 16 levels

So from the 17 Subsidiaries,India Land & Properties Ltd will cease to be one on the Chennai Sale…proceeds will go to another wholly owned subsidiary Indiabulls Distribution Services Ltd…. what will it do with the money left over after settling Long term Debt & reducing Short Term Debt & paying of Tax on the Deal?…… Maybe invest in another Property/s ?… or will it issue huge dividend to parent to transfer net proceeds & in turn the listed parent part a large part of proceeds to shareholders as dividend ?… The Notice for the EGM of course states the sale is being considered only to improve liquidity & reduce debt

Company also had been paying Rs 1 dividend every quarter earlier in 2015 which they dropped to Rs 0.50 for the last two interims

Deloitte Haskins & Sells LLP, the auditors have given a  clean report… their office too is in Indiabulls Financial Centre in Lower Parel, Mumbai

Disregarding Indiabulls Group’s past controversies, clearly Promoter Sameer Gehlaut will be on a roll as his this company gets re-rated & his Promoter Holding moves up from 33%+ to 43%+…interestingly he’s not on the Board of Directors of this one

So was this 100% price rise indicated in the past months & days ?

I sense it was clearly,if not with the May ESOS grants at Rs 16,then surely a few days ago on June 15,2016 when Board approved the Preferential to Promoters & CEO at Rs 19.75 & a few days ago on July 2 where the ESOS grants were double in number from May at a higher price of Rs 24.15 !… so many approvals & grants in quick succession ?….had to be because of price running away & the fact that they had to be vested with exercise price at current price levels…. Interestingly the EGM Notice came up on June 20,2016 just 5 days after the June 15 notification of Preferential Issue

Now the Price is up 15% yesterday to Rs 33…. and if it maintains or grows from here any further grants will be at this or higher price… that should be another giveaway if it does happen

Promoters,CEO & Employees & Shareholders all being seen to be rewarded …so who’s complaining as long as Price runs up!…. CEO gets Rs 3 crs + annual pay & he regularly returns a large part to the company by exercising ESOS options + now with this 4 m convertible warrants being issued to him… converting his income to equity surely has to be a vote of faith.

Interestingly the EGM begins at 10 am on Friday,July 15, 2016…. hopefully outcome may be relayed to Exchanges during trading hours on the same day…. wonder if the One Indiabulls Park sale has already been finalised & seeking the mandatory shareholders permission for this special resolution is a mere formality…or will they then look for buyers after obtaining this permission

Anybody out there knows what’s the current Sq ft buy out rate of Iconic Big Commercial Property in Ambattur, Chennai !?

Flash Update, Morning of Wednesday, July 13, 2016

Economic Times  mentions other Media sources for a possible raid by Income Tax authorities on Offices aross India of the IndiaBulls Group…… their scrips are down 5% to 8%…. IB Ventures is down 8%+ at Rs 31.50 levels….. EGM scheduled for Friday should go ahead unless Raid spills over

lls Real Estate

Flash Update, Wednesday, March 15, 2017

IB Ventures finally notifies the exchanges of the Subsidiary Shareholding sale for Rs 685 crs that holds the Chennai Property.Sale was to it’s own Group Company Indiabu

After dropping to even below Rs 20 in November & December 2016 and even available at Rs 20 levels till last month in the  first week of Feb 2017 the Share Price closed 10% upper circuit today at Rs 41.95 on both BSE & NSE on this announcement. The Share Price actually began recovering lost ground quite quickly last month.Insiders obviously knew of the deal intragroup itself

Now What !?

Disclaimer : Have an interest in IB Ventures

FirstSource Solutions Ltd
BPO/KPO
FV – Rs 10; 52wks H/L – 48.85/25; TTQ – 14.58 Lakhs; CMP (June 24, 2016) – Rs 44.15;

Market Cap – Rs 2979.3Crs

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

Valuation Parameters 

1. EV/EBITDA: 8.24
2. EV/Share: Rs 50
3. EV/Sale: 1.03
4. Market Cap/ Sale: 0.92
5. Debt to Equity: 0.18

Recent Updates

• In June 2016, Board of Directors of the Company approved grant of 3000000 stock options (each option exercisable into one equity share) to the eligible employees of the Company and its subsidiaries at an exercise price of Rs. 40.90 per share under Employee Stock Option Scheme of the Company.
• The company’s US Subsidiary, FG US completed acquisition of ISGN’s Business Process Outsourcing Division in May 2016.
• FY16’s growth was lower than guidance due to Approx. 200 bps due to decline in domestic business and a further 200 bps due to challenges faced in US telecom client business.

Block Deals

IPO

• The company came out with its IPO in the year 2007 @Rs 64 a share and was promoted by the ICICI Group.
• The IPO size was Rs 443 Crs with a fresh issue of 60 million shares and an offer for sale of 9.3 million shares by Promoter, ICICI Group.
• The IPO was oversubscribed 40 times and got listed at Rs 90.

The Company’s share price after making a high of Rs 93 in 2007 made a. All time low of Rs 6 in 2012 and has now climbed to Rs 44 in June 2016.

Overview

• Firstsource Solutions Limited is a business process management company.
• The Company provides business process outsourcing (BPO)/business process management (BPM) services to the healthcare, telecommunications and media, and banking, financial services and insurance (BFSI) industries.
• The Company has two segments: Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance.
• The Company’s product portfolio includes First Customer Intelligence, First Chat, First Smartomation, First Resolve and First WF Suite.
• The Company’s flagship product First Customer Intelligence is a customer interaction analytics solution. First Chat is an online customer engagement product.
• First Smartomation is a process automation solution. First Resolve is a complaints management solution. First WF Suite is a workforce management solution, which consists of consulting services, managed services and WFM capability development.

Management

• Mr Sanjiv  Goenka is the Chairman
• Mr Rajesh Subramaniam is the MD & CEO

The Equity Capital is @Rs 67.33 Crs consisting of 673314912 Equity Shares of FV Rs 10 currently held

None of the promoter’s holding is pledged

Consolidated Financial Trends ~ Amt in Rs Crs

• In FY15, Company issued 6556583 equity shares of the face value of Rs 10 each on the exercise of stock options under Firstsource Solutions Employee Stock Option Scheme, 2002 (ESOS 2002) and Firstsource Solutions Employee Stock Option Scheme, 2003 (ESOS 2003). Thus, the outstanding, issued, subscribed and paid up capital of the Company increased from 659734876 shares to 666291459 shares of Rs 10 each aggregating to Rs 666.29 Ccrs.
• In FY14, Company issued 2061125 equity shares of the face value of Rs 10 each on the exercise of stock options under Firstsource Solutions Employee Stock Option Scheme, 2003. Consequently, the outstanding, issued, subscribed and paid up capital of the Company increased from 657673751 shares to 659734876 shares of Rs 10 each aggregating to Rs 659.74 Crs.
• In FY13, after the issue of 226897444 equity shares to Spen Liq Private Limited on preferential allotment basis, the issued, subscribed and paid-up equity share capital of the Company increased from 430776307 shares to 657673751 shares of Rs 10 each aggregating to Rs 657.67 Crs.
• In FY12, the Company issued 138125 equity shares of the face value of Rs 10 each on the exercise of stock options under the Employee Stock Option Schemes of the Company. Consequently, the outstanding, issued, subscribed and paid-up equity share capital of the Company increased from 430638182 shares to 430776307 shares of Rs 10 each.

Nalwa Sons Investments Ltd
Investment Holding Company
FV – Rs 10; 52wks H/L – 806/560; TTQ – 6; CMP (June 22, 2016; 2.15 pm) – Rs 621;

Market Cap – Rs 318.96 Crs

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

• The auditors have put drawn attention to an Emphasis of matter ~ The Company has made long term investment in a subsidiary company of Rs 61 Crs and in certain other companies of Rs 26 Crs where there is diminution in value of investment.
• In FY15, the company had made Provisions for Non-Performing Assets (Doubtful) of Rs 16 Crs.
• Jindals to unwind complex cross-holdings
• The Company’s stock has very low liquidity

Source: BSE

Overview:

• The Company is engaged in the business of investment and financing activities, which include consulting revenue related to investment and finance.
• The Company is also a non-banking financial company (NBFC).
• The Company’s products are classified as investments, which include dividend and interest.
• The Company holds investments in equity shares of steel manufacturing companies of O.P. Jindal group.
• The Company conducts its operations in domestic and overseas markets.
• The Company’s subsidiaries include Jindal Steel & Alloys Ltd. (JSAL), Jindal Holdings Ltd. (JHL), Brahmputra Capital & Financial Services Ltd., Massillon Stainless Inc. U.S.A and Jindal Stainless (Mauritius) Ltd. (JSML).

Management:

• Mr Ratan Jindal is the Vice Chairman and the MD

Shareholding Pattern as on March 31, 2016

• The Equity Capital is @Rs 5.14 Crs consisting of 5136163 Equity Shares of FV Rs 10 currently held as under
• None of the promoter’s holding is pledged

Consolidated Financial Trend ~ Amt in Rs Crs

Indiabulls Wholesale Services Ltd
Consumer Electronics
FV – Rs 2; 52wks H/L –34.20/8.65; TTQ – 2.33 Lacs; CMP – Rs 28.20 (As On June 13 2016; 11.00);                                  

Market Cap – Rs 143.03 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 – 0.36
2. ROE % – 0.8
3. Market Cap/Sales – 0.5

Overview:

• Indiabulls Wholesale Services Ltd and its subsidiaries are engaged in the business of trading, real estate development and retail business.
• The Company is also engaged in the business of rendering information technology (IT) consultancy, property maintenance, equipment hiring, and tour and travel services.
• The Company operates through segments, including Trading, Real estate projects under development, Information technology solutions, Facility maintenance and other related activities, Equipment hiring services and Aviation services.
• The Company is engaged in the business of wholesale trading of various industrial/consumer products and commodities in select Indian cities.
• The Company is also engaged in chartering business of aircraft.
• The Company is developing real estate projects on land situated in Ahmadabad, Gujarat, and Hyderabad, Andhra Pradesh.

Management:

• Mr. Mehul Johnson – Director
• Mr. Surinder Singh Kadyan  – Whole Time Director
• Mr. Saurabh Garg – CFO

The Equity Capital is @ Rs 12.66 Crs consisting of 50718493 equity Shares of FV Rs 2 currently held

None Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

During 2014-15, additional 156700 no. of equity shares of Rs.10 each were issued.

Gokaldas Exports ltd
Other Apparels & Accessories
FV – Rs 5; 52wks H/L –134.2/40.45; TTQ – 3.23 Lacs; CMP – Rs 117.25 (As On June 13,2016 ; 15.00) ;                         

   Market Cap – Rs 400.95 Crs

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

Consolidated Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – Nil
2. ROE % – 28.4
3. Market Cap/Sales – 0.35

Blackstone sells 10% stake in Gokaldas Exports at huge loss to ICICI Bank.

http://www.vccircle.com/news/textiles/2016/06/10/blackstone-sells-10-stake-gokaldas-exports-huge-loss

Order book for Q4FY16 was significantly better driven by penetration into new categories for some existing customers and also aided by unusually high spring summer demand.

The company said it is working towards growing the top-line and improving profitability through various cost optimization initiatives, improvement in efficiency and customer-category portfolio realignment to improve margins.

The company had around 46 factories in 2007 and the factory numbers have come down to 24 as of end of FY16.
In FY16, the company sold one factory to Raymond for Rs 28 crore and the board also approved sale of three other factories in Bengaluru, Hyderabad as well as Mysore.  (http://www.moneycontrol.com/news/stocksnews/trimming-non-core-assets-helps-gokaldas-exports-turnaround_6838861.html

Overview:

• Gokaldas Exports Ltd (GEL) is one of the leading apparel exporters of India serving large global retailers since its inception in the year 1978.
• GEL operates from 30units spread across states of Karnataka, Tamil Nadu and Andhra Pradesh and has installed capacity to produce more than2.5 million garments per month.
• GEL provides employment to 28,000 people.
• GEL blends its manufacturing expertise with state of the art design capabilities to provide multiproduct offerings; sustained reliability weaved with consistent quality to meet changing demands from customers at right cost: from design to delivery.
• GEL has a diversified product portfolio across various categories of garments for men, women and children. GEL’s expertise lies in manufacturing outerwear which very few manufacturers in India can match.
• The principal source of revenue for the Company is from export of garments and related products.
• The Company’s products include outer wear, mens bottoms, mens tops, womens wear, kids wear, sportswear, denim and formal wear.

Bulk Deals:

Management:

• Mr. Richard B Saldhana – Chairman
• Mr. P Ramababu – MD
• Mr. Sumit Keshan – CFO

Subsidiaries: The Company has 13 Subsidiary companies.

The Equity Capital is @ Rs 17.3 Crs consisting of 34789326 equity Shares of FV Rs 5 currently held 

57.44% Of Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends – Amt in Rs Crs except BV.

During 2014-15 the company issued 218332 equity shares of face value Rs.5 each.

The company posted 77% jump in its consolidated net profit at Rs. 61 crore against Rs. 35 crore in FY15.

Man Infraconstruction Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L – 50/28.85; TTQ – 1.9 Lakhs; CMP (June 13, 2016) – Rs 41.9;

Market Cap – Rs 1037 Crs

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

• The share price has moved up by 26% in the last three months to Rs 41.9 (13/6/16) from Rs 33.25 (13/3/16).
• The PAT for Q4 FY16 fell by 87% Q-o-Q (it was actually higher at Rs 7 Crs) because the company had to pay the pending CSR (corporate social responsibility) donation of Rs 2 Crs and make provisions for Rs 4 Crs.
• The company has no bad debts on the books now.
• In December 2015, Company’s promoter Mansi Parag Shah sold around 6.5% of her stake in the company for various charity purposes. Shah sold around Rs 1.6 Crs shares, amounting to Rs 74.90 Crs. After the stake sale, Shah’s holding in the company declined to 15.35% from 21.8% earlier.
• Auditors have put an Emphasis of Matter without qualifying the opinion on the issue of termination letter by Manaj Tollway Private Limited (MTPL), a subsidiary of the company, to Public Works Department, Govt. of Maharashtra (PWD) on March 30, 2015 for terminating the Concession Agreement with respect to the construction road on DBFOT basis due to unresolved matters on land acquisition and forest clearance and has stopped the work. As at March 31, 2016, expenses incurred on construction of Tollway are classified as “Intangible Assets under Development” by MTPL amounted to Rs 129.93 Crs. MTPL has been legally advised that it has a strong case on merits to recover such claims. Man Infraconstruction holds 63.64% stake in MTPL.

Valuation Parameters:

1. EV/EBITDA: 33.11
2. EV/Share: Rs 48
3. EV/Sale: 5.25
4. Market Cap/ Sale: 4.54
5. Debt to Equity: 0.47
6. RoE: 2.19%

Recent Update:

• MICL Realty LLP, group entity of Man Infraconstruction, has acquired development rights for redevelopment of three residential buildings at Naidu Colony, Ghatkopar, Mumbai, having approximately 1.5 lakhs square feet saleable area. Man Infraconstruction holds 46% in MICL Realty LLP. Man Infraconstruction bags rights to redevelop three buildings in Mumbai
• Port segment to aid growth in coming quarters: Man Infra

Block Deals:

Overview:

• Man Infraconstruction Ltd is engaged in construction business.
• The Company provides construction services for Port infrastructure, Residential, Industrial, Commercial and Road Infrastructure Projects.
• In the road infrastructure sector, the Company provides earthwork, paving, sewerage, storm water drainage, electrification, landscaping and arboriculture.
• The Company’s major projects include Jawaharlal Nehru Port Trust, Mundra Port, Chennai Port, Vallarpadam Port and the Pipavav Port.
• It sold half of its stake in Atmosphere Realty Private Ltd (ARPL) in the first half of FY15. Equity holding of the Company in ARPL now stands at 17.5%.

EPC order book stood at Rs 321 Crs as on 30th September, 2015

Real Estate Project Portfolio

Management:

• Mr Berjis Desai is the Chairman
• Mr Parag K. Shah is the MD

Consolidated Financial Trend ~ Amt 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