100 Baggers by Christopher Mayer

by with No Comment Book ReviewsScrip Scan

Book Review for Outlook Business : 100 Baggers ~ by Christopher Mayer

Hey! my book review of Christopher Mayer’s “100 Baggers : Stocks that return 100-1 & how to find them” now features online on Outlook Business ....just also happily observed that Stock Select for 2016 published in December 2015 is trending  online as the No 1 most popular read on Outlook Business this year! ….surely because  Stock Select for 2015, Shemaroo @ Rs  159 given in December 2014 has rocketed over 100% inside a year & a half to current Rs 325+ levels …quite aware that if this year’s Select does not Click in the years ahead that ‘100 baggers’ will be read without the 1!

For want of Magazine Space the book review in print is a much truncated & edited version

For Full Flavour do check out my full review produced verbatim below :

Book Review by Gaurav A Parikh, MD of Jeena Scriptech Alpha Advisors Pvt Ltd

Book  : 100 Baggers ~ Stocks that return 100-to-1 & how to find them

Author : Christopher W Mayer

Publisher : Laissez Faire Books

Published in : 2015

“You make more money by sitting on your ass”

The author Chris Mayer could not have been more blunt in quoting Fund Manager, Martin Whitman

You need to Buy Right and Sit Tight for Years & Years & Years for that 100 Bagger. How do you Buy Right!? That’s the 100 Bagger Question Chris attempts to answer

 My own experience of 100 Baggers leads me to pat Chris on the back. To give you some sense  my three 100 Baggers Wipro, Mercator & Matrix Labs (now delisted as sold to Mylan) on which I had reinforced my credibility and standing had returned  respectively 38700% inside three years, 12000% inside 5 years and 10000 % inside 4.5 years. But sadly not all took the full ride! It’s like I confess at Training Workshops is akin to Boarding  a Train from Mumbai Central to Ahmedabad  but getting off at Borivali!

Make no mistake! This book by Chris Mayer is not  for those who seek  Instant 100-to -1 multi-bagger Success by investing in Stocks. Such 100-to-1 odds are available real time at Wealth Destroying Casinos round the world!

Chris dedicates his Book to Thomas W Phelps, the first author of  the first book on 100-Baggers

His inspiration to pen this book trails back a few years to  a Conference in 2011 where the great Investor, Chuck Akre  made mention in his address of having read in 1972 the  Barron’s Reviewed  Book ‘100 to 1 in the Stock Market’  by Thomas Phelps which focused on compounding capital. Legendary Investor Peter Lynch talked of ten baggers but here was Thomas Phelps talking of 100 baggers!

“The key is not only finding them, but keeping them”,“buy right and hold on”. These are nuggets Phelps summed up in his book. Phelps had added “ Investors too bite on what’s moving and can’t sit on a stock that isn’t going anywhere. They also lose patience with one that is moving against them. This causes them to make a lot of trades and never enjoy truly mammoth returns. Investors crave activity, and Wall Street is built on it. The media feeds it all, making it seem as if important things happen every day.”

Chris writes in first person and hopes his effort  “will energise & excite you about what’s possible”  & “you don’t need a MBA or a finance degree” 

100 Baggers is a metaphor for Big Winners with Chris detailing how to spot them early on rather than be invested in sleepy stocks that go nowhere. He does admit there is no magic formula and it’s not easy to screen potential winners.

Chris’s effort is an update on Phelps book of 1972 that covered  365 stocks from 1932 to 1971 that became 100 Baggers.Chris covers 365 100 Baggers too from 1962 to 2014 reinforcing  Phelps insights  as well as providing new ones  due to better computing horsepower

Interestingly Chris was not interested in success stories of Market Wizards like Jim Rogers, Paul Tudor  or even  Nicholas Darvas as he found their stories freakish and their process for enormous gains not replicable. In fact he thought one would be ruined if you followed them.He also realised that there were many ways to make money other than being just indoctrinated to the Benjamin Graham School of Value Investing best exemplified by living legend Warren Buffett

He is impressed by the great Investor, Chuck Akre who, far away from the frenetic pace of Wall Street,  follows the three legged stool approach of identifying companies that always have a historical compounded value of share at high rates and who’s highly skilled management always treats shareholders  as partners and most importantly & has a business that can reinvest free cash flows to earn sustained above average returns

The cornerstone philosophy  for identifying 100 Baggers is to Look for Companies with sustained High Returns on Capital. As Charlie Munger of Berkshire Hathaway  reiterates that even if you invest in such a Company at an expensive price it will work out fine. Conversely if you invest even at a discount in a Company consistently  returning low on capital there will not be much difference in your low returns. A PEG Ratio is a handy tool to gauge if Relative Valuations are in sync with Earnings Growth   

Over and above the cornerstone philosophy as above here are the 10 pearls of wisdom distilled from by Chris Mayer to invest in 100 Baggers

  1. Actively Look for 100 Baggers. Don’t be in Equity for Small Game. Look for the Elephant
  2. Look for Value added Topline Growth without any Equity Dilution or Margin Cuts that affects Return on Equity. Spend Time in understanding what you own rather than in following Forecasters and Market Analysts
  3. Don’t troll stocks  for 100 Baggers where PE is 5 or below or where Price is below Book. Great Ideas are not always Cheap
  4. Look for Economic Moats that allow the Company to consistently earn High Returns on Capital. Of course such Moats can be destroyed by disruptive technologies and business being created (Uber Car Hire Aggregators ) & 100 Baggers can also be where the Company has discovered a new oil field or there’s a new drug or invention involved. Facebook, Twitter & YouTube currently enjoy Network Moats that are difficult to crack
  5. Look for Small to Mid Caps as at some time large nos will work against you. Apple with a Market Cap of @ US $ 750 billion is already a 100 Bagger. From here to become a 100 Bagger again it needs to go to US $ 75 Trillion which is four times the US GDP. Unlikely
  6. Prefer Owner-Operator Companies as what’s good for them is good for you & vice-versa
  7. Adopt the Coffee Can Approach for a part of your portfolio to stay Invested for at least 10 years and not be tempted to sell or act frequently
  8. Create a Good Filter so as not to get distracted by daily Volatility and macro happenings that force you to act impulsively or in haste. Monster Beverages showed several monthly drops and rises in excess of 20% and yet kept the annual march upward. Such Volatility would have forced you to act and sell out and therefore miss out on a 100 Bagger Idea. Also the Index is not relevant to finding great stocks to invest in unless you’re buying the Index
  9. Good Luck Helps
  10. Buy Right & Sit Tight. Be a reluctant seller to allow the magic of compounding to do its work

Your Real Test of Conviction and Temperament comes when you’re holding a Stock that appears to have gone bad but then goes on to become a huge Bagger. Warren Buffett’s Berkshire Hathaway  has been referred to in the Book to emphasise this and much more. It rose from US $8 in 1962 to US $80 in 1972. Impressed  and well advised by a friend, one picked it up at US $80 only to see it sink 53% to US $38 by 1975 while the S & P 500 had dropped only 14%. One would have dumped it and cursed the friend! However in 1976 it rose from US $38 to US $94 and by 1982 it was US $775 on it’s way to levels of over US $220000 now ! In fact from 1965 its risen 18000 fold with US $10000 becoming US $ 180 million in 50 years. Chris refers to a new interesting book by Elena Cherkova on this phenomenon & her reasoning that it was the 37.5% leverage on capital through Insurance Float that remains the key as it leads to effectively borrowing at negative rates of interest when Premiums exceed the Claims & the gains on investing the Float are yours to keep.       

Apple too was a 225 Bagger from it’s IPO in 1980 to 2012 but the ride was not easy. Those who held on had to suffer through a peak-to-trough loss of 80 percent — twice! The big move from 2008 came after a 60 percent drawdown. And there were several 40 percent drops.

Chris highlights the Coffee-can Portfolio Approach to protect the Investor from himself and to resist selling to accumulate fortunes and not be worried about ticker tapes and anxious moments watching  blinking stock terminals and ups and downs in the market and sweating day to day or month to month on your portfolio value. Pick a compelling story or Leader or Country and be willing to risk it all in your Coffee Can. Chris illustrates this with how in 1987 equal amounts were invested in hi-tech and bio-tech companies that held great potential. However 9 sunk and only Amgen returned 800 times the Investment made by 1994 but made up for more than the loss in the other 9!Chris though recommends not to experiment with start-ups but rather focus on well established companies with long runaways of growth and ability to keep compounding capital at high rates.

The Twin Engines are Growth in Business & Market Multples to become 100 Baggers. It’s also about what not to be buying like Utilities and Long Mature Companies like McDonalds and WallMart that will take a lot of years if at all they do become 100 Baggers.

Great Investors do not worry or spend time on what is unknowable or unpredictable like the Fed Rate or US $ or overall state of markets.They focus on great opportunities.

Chris’ study of the 365 Companies that became 100 Baggers from 1962 to 2014  revealed that they spread over several sectors from beverages to retailers to tech firms and took an average of 26 years to become 100 baggers. However the Fastest 10 that became 100 Baggers  did so from 4.2 years to 7.3 years were largely tech,media and pharmaceutical companies.  Also the Median Sales was US $ 170 m while Median Market Cap was US $ 500 m. Price to Sales Ratio was thus around 3 which is not really cheap. The myth that one needs to invest in a tiny company to get a 100 Bagger was dispelled as was not mandatory to look for low Price to Sale Ratio Companies to identify winners.

Chris covers several individual success stories.Monster Beverages stands out. It became a 100 Bagger inside 10 years by 2006 and a 700 Bagger by 2014.In fact one could have even bought it in 2004 and would have got a  100 Bagger. This was despite it being shunned by many well known analysts.One even recommended a Short in 2005 at US $ 6.31. It went on to hit US $ 26 inside a year! One was best served by not following analysts for this Stock! The Dramatic rise was due to brilliant marketing,branding and distribution strategies that surged the topline and led to increased profitability on account of both volume and margin growth. What inevitably followed was a re-rating of Earnings Multiples on Stock Market Quotes. Interestingly Monster never really got very expensive as it’s PE & Earnings Growth were largely in sync year on year.

Amazon is another Interesting Case Study. It was available at just US $ 1.50 in 1997 when it began to be quoted. It became a 100 Bagger inside two years by 1999 when it hit US $ 221 only to be destroyed inside the next two years by the dot.com bust to sink back into single digits by 2001.It took 10 years from there to become a 100 Bagger again. Chris & his team of analysts argue that Amazon yet holds great promise with internet sales rising from sub 2% of retail sales in 1997 to @ 9% currently and potential of 35% seen in the coming years. The Founder,Jeff Bezos is very clear that  value of the business is future cash flows discounted to the present and that focus should be on correct allocation of capital and return on invested capital. On first look it appears Amazon is not doing well till you add back the R & D Expenses that are more in the nature of Investments and can be argued need to be capitalised.For instance 2014 Sales were US $ 89 billion while Operating Profit was just US $ 179 million.However R & D was a mammoth US $ 9.27 Billion and when added back give over 10% Operating Margin. Market Leadership is important says Bezos.

It also covers the rationale of Betting on Billionaries like Steve Jobs of Apple or Bill Gates of Microsoft or Warren Buffett of Berkshire Hathaway and even the new upcoming ones. It’s the argument of Owner-Operators vs Agent-Operators and how the former demonstrate abilities to make deals when others are afraid while the latter are loathe  to spend cash and prefer to take on less debt. 

If you believe, like I do, that India stands out currently in the Global Economy as a great Investment Destination for the decades ahead and act on this conviction after applying a lot of the insights from this book ,I assure you ,you’ll be writing out your own 100 Bagger Stories.

Just Invest Right & Sit Tight!

Learn from ‘100 baggers’ so you can live them!

A word of caution though …sitting tight can also cost you like once Blue chip Kodak did! & what with disruptive technologies being born every day.

It takes more than just Security Analysis. It takes Conceptual Power in what a Business can achieve & how big it can get.

Who said 100 baggers come Cheap!  

Cheers,

Gaurav Parikh

Ashima Ltd

by with No Comment Scrip Watch

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)


Equity Capital
Net worth
Long Term
Debt
Total  
Sales		 PAT
EPS (Rs)
Industry
P/E
Promoter’s
Stake
Beta
33.37 (60.93) 61 213 (23.58) (7.07) 33.32 33.38 1.69

 

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 3rd, 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

Sr No Major Non-Promoters % Stake
1 Malay Jayendra Dalal 1
2 Nehaben Hemangbhai Patel 1.17
3 Patel Hemang Sukhdevprasad 1.24
4 Aditya H. Patel 1.48
5 JMP Securities Pvt. Ltd. 1.14
6 Mentor Capital Limited 1.13
7 Geek Technologies Pvt. Ltd. 6.58
8 MP Investments India Limited 3.23

 

Share Price Trend

 

 

Standalone Financial Trends ~ Amt in Rs Crs

 Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 33.37 33.37 33.37 33.37 33.37 33.37
Networth -61 -269 -257 -244 -230 -216
Long Term Debt 61 457 468 468 471 471
Total Sales 213 271 268 268 245 259
PAT -23.56 -16.2 -310.91 -297.98 -333.04 -321.1
EPS (Rs) -7.06 -4.85 -93.17 -89.30 -99.80 -96.22
Book Value (Rs) -18 -81 -77 -73 -69 -65

 

Ricoh India Ltd

by with No Comment Scrip Watch

Ricoh India Ltd

The shares of Ricoh India Ltd are locked up at Upper circuit at a price of Rs 273 before hitting a Lower circuit early in the day. The share price has been vacillating between Lower circuits and Upper circuits alternatively for a number of days. The share price has fallen by 75% from its 52 week high of Rs 1072 made in July 2015.

Ricoh India is a subsidiary of Japanese multinational imaging and electronics company Ricoh Company, which directly holds 46.04% stake in its Indian arm. The parent company holds another 27.56% of Ricoh India through NRG Group, thus taking total holding to 73.6% in Ricoh India.

The Company has now filed a police against “suspected wrong-doers” ~ Ricoh files police complaint against suspected wrong-doers

The company has not yet reported it Quarter 2 results for the Financial Year ending 2016. The reason for the delay has been stated as a change of auditors which happened last year. Ricoh India’s auditors were originally a local firm called “M/s Sahni Natarajan and Bahl”. They were replaced by M/s BSR & Co. LLP, the Indian avatar of KPMG. The problems seem to be having started from then. Subsequently the company has also further delayed its reporting of quarter 3 results for FY16. Whereas when its parent company in Japan announced its third quarter results it sounded very much positive on the performance of its Indian IT service operations.

In January this year, India Ratings, a unit of Fitch, had upgraded its rating for Ricoh India’s Rs 200 Crs Long Ter Non-Convertible Debentures to Ind AA – from Ind A with a stable outlook and also that of Long Term Issuer Rating of Ricoh India to Ind AA- from Ind A with a stable outlook. Later, on March 15, the ratings agency placed the Company’s Long Term Issuer Rating, its Rs 200 Crs NCDs and its Commercial Papers on a Negative rating. The stock reacted by falling over 100 points from its day’s high of Rs 580.25 to Rs Rs 479.75 on March 16th 2016.

In February it won an order worth Rs 344 Crs from Kerala State Electronics Development Corporation Ltd for Supply, Installation and Commissioning of Computer Hardware, Connected Accessories, Software, Maintenance of Equipments and provision of Computer Education Services in 2000 Government & Government Aided High Schools in the State of Odisha on 5 Years BOOT Model Project under ICT School Scheme.

In its March 29th notification to the Stock exchange, the company communicated that it has “not yet received the signed limited review report from the auditors and the audit committee would take up again the matter with the Statutory Auditors to submit their limited review report on an immediate basis.” The notification also mentioned that “In order to assist the audit committee, the audit committee has sought the opinion of an Independent Agency in this regard”.

It is evident from the communication that the auditors have finished the audit but are refusing to issue a limited review report. A possible explanation to this could be that auditors must have pointed out severe objections on the accounts and are demanding a proper disclosure from Ricoh India. The communication also revealed that the “the review process is being coordinated by employees other than those who have been involved in the preparation, review, approval and signatures of the books and accounts.” and the excuse for this is “some of the employees in the latter category have been requested to avail leave with pay with effect on and from the 30th day of March, 2016”. The Company has called this a “standard practice” but the standard practice is that employees who prepare the accounts are at the forefront are supposed to answer the auditor’s queries. On April 1st, the Company notified that it has appointed an independent agency, an independent Law firm and accountants to assist the Auditor committee. Further, Ricoh India has requested its Mr Manoj Kumar, MD and CEO, Mr Arvind Singhal, CFO and Mr anil Saini, Senior VP and COO to take leave with pay during the review process. On behalf of the above officers, Mr A.T Rajan would be in charge of CEO and COO duties and Mr Bibek Chowdhury would be in charge of CFO functions. Later on April 4th Mr Manoj Kumar resigned from the Board of Directors with effect from April 2, 2016.

The scrip was transferred to ‘Z’ group from ‘B’ group on BSE due to non-compliance issues with effect from March 28th. The trades in these scrips executed in ‘Z’ group will be settled on trade for trade basis. If a company is shifted for settlement on trade-to-trade basis, selling or buying of shares in that scrip results into giving or taking delivery of shares at the gross level and no intra-day netting off/squaring off is permitted. The scrips which form part of the ‘Z’ group are compulsorily settled on a trade-to-trade basis.

The Company is now under regulatory glare amid allegations of financial irregularities that recently led to its top officials stepping down. The Securities and Exchange Board of India is looking into complaints including the lag in announcement of results by the company and the reasons that caused the delay.

Now, the BSE has issued notification on May 4th that trading in Ricoh India will be suspended from May 26, 2016 on account of non –compliance with Regulation 33 of SEBI Listing Regulations, 2015 for two consecutive quarters. And the most recent update being Ricoh India’s board will meet on May 17, 2016 to discuss Q2 FY16 results.

Month Open High Low Close No. of
Shares		 No. of
Trades		 Total Turnover Deliverable Quantity % Deli. Qty to Traded Qty * Spread
H-L C-O
Jul 15 1,037.00 1,072.25 930.00 1,024.50 8,58,902 26,219 86,80,75,472 4,51,644 52.58 142.25 -12.50
Aug 15 1,033.00 1,069.00 635.25 737.25 9,59,746 29,014 82,03,08,882 5,64,440 58.81 433.75 -295.75
Sep 15 721.00 940.00 580.00 905.50 11,75,697 37,479 89,13,73,396 6,89,430 58.64 360.00 184.50
Oct 15 915.00 960.00 835.00 899.00 4,56,031 11,859 41,48,01,329 3,22,233 70.66 125.00 -16.00
Nov 15 900.00 970.00 807.25 945.25 7,20,493 21,851 63,28,85,402 4,84,365 67.23 162.75 45.25
Dec 15 947.50 958.75 702.00 788.75 10,99,503 24,282 89,34,09,682 7,43,278 67.60 256.75 -158.75
Jan 16 790.75 800.00 590.00 595.75 4,94,864 14,653 34,25,49,794 3,44,843 69.68 210.00 -195.00
Feb 16 610.00 671.00 490.00 533.25 8,55,951 21,551 48,73,76,422 5,48,539 64.09 181.00 -76.75
Mar 16 530.00 647.00 422.00 422.00 9,44,904 21,605 52,26,52,754 6,11,494 64.71 225.00 -108.00
Apr 16 413.00 413.00 304.30 332.40 24,00,905 8,845 83,58,99,658 24,00,905 100.00 108.70 -80.60
May 16 330.00 330.00 240.10 273.00 8,35,309 3,059 22,69,84,330 8,35,309 100.00 89.90 -57.00

 

Standalone Financial Results – Amt in Rs Crs

 Particulars Q1 FY16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 39.77 39.77 39.77 39.77 39.77 39.77
Networth 169 169 140 123 124 132
Long Term Debt 200 200 – – – –
Total Sales 442 1638 1049 633 432 297
PAT 0.4 34 17 -1.3 -2.6 16
EPS (Rs) 12.47* 8.55 4.27 -0.33 -0.65 4.02
Book Value (Rs) 42 42 35 31 31 33

*TTM EPS for Q1 FY16

The Company has issued – Debentures from Related Party – Unsecured Redeemable Non Convertible Debentures in FY 15 – 2,000 units of 7.8% Debentures unsecured, non-cumulative, redeemable, taxable, listed, rated non-convertible of a face value of Rs. 10 lacs each privately placed at par during the year is redeemable in Financial Year 2017-18 for cash at par.

Trade Receivables for FY 15 have almost doubled to Rs 662 Crs from Rs 319 Crs in FY 14.

Cash and Cash equivalents have doubled as well for FY 15 to Rs 70 Crs from Rs 38 Crs. Balances with banks in this case have reduced to Rs 17 Crs from Rs 27 Crs, Cheques on hand have increased to Rs 40 Crs from Rs 2 Crs and Margin Money has also increased to Rs 13 Crs from Rs 9 Crs. Banks with balances includes blocked accounts amounting to Rs 3.17 Lakhs at the pre-devaluation rates of exchange.

Other short term loans and advances for FY 15 have increased 2.5 times to Rs 50 Crs from Rs 20 Crs in FY 14.

Ricoh India’s delisting offer had failed in 2014. Its Japanese parent had announced for delisting of the Indian arm in November 2013. The Share price had tripled in months after the news. The offer failed later on as the company’s Japanese promoters rejected the price discovered through the reverse book building (RBB) process and said Ricoh India would continue to remain listed.  The share price then dropped by 40% on the news. Ricoh India dips 36% in two sessions after delisting bid fails

Crest ventures Ltd

by with No Comment Scrip Watch

Crest ventures Ltd
Misc. Commercial Services
FV – Rs 10; 52wks H/L –63.35/31.70; TTQ – 21 K; CMP – Rs 63.35 (As On May 16th 2016; 13.00);                                  

Market Cap – Rs 110.04 Crs

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
17.37 253 58 34 37.19 146 21.41 3 22.76 0.43 57.21 0.64

 

Consolidated Financials and Valuations for Q4 FY16  


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
17.37 253 58 7 19.49 146 21.41 3 22.76 0.43 57.21 0.64

 Valuation Parameters:

  1. Long Term Debt to Equity – 0.23
  2. ROE % – 15
  3. Market Cap/Sales – 3.2

Crest Ventures Ltd is mainly engaged in Investing, Managing and Consulting. It is currently evaluating small investments in web-based business opportunities.

The company is also into the tours and travel business as Tamarind Tours Pvt.Ltd

Key Updates:

  • The Company sold its investment in SAI to Systra – a French Government owned company, one of the largest companies in the world, in consultancy of metro and high speed rails. This reinforces the Company’s ability to invest in and build businesses which create value.
  • The Company’s investment phase for building projects will reach completion by mid-2016 and will invest in building up the asset management business and they will also continue to invest in organisation building.
  • The Company’s focus this year was completion of on–going projects, evaluating new projects and building CREST as a quality and premium brand. The Business Development team has been proactively scouting for projects in and around Mumbai and has been actively participating in the tender process for re-development projects.

 

Bulk Deals:

Deal Date Client Name Deal Type Quantity Price (Rs.)
28-Mar-16 Suraj Dileepkumar Karkera P 89740 40.79
28-Mar-16 Velocity Stock Mart Pvt.Ltd S 90579 40.79
28-Mar-16 Velocity Stock Mart Pvt.Ltd P 90078 39.8
28-Mar-16 Suraj Dileepkumar Karkera S 90001 39.71

 

Overview:

  • Crest Ventures Limited, formerly Sharyans Resources Limited, is an angel investment company with a diverse portfolio of investments across a broad range of industries. (The Ministry of Corporate Affairs, Registrar of Companies, Mumbai has vide Fresh Certificate of Incorporation pursuant to change of name dated September 01, 2014 approved the change of name of the Company from Sharyans Resources Limited to CREST VENTURES LIMITED.)
  • The Company is involved in ongoing management and advising for most of its investments.
  • It engages in ongoing financial review of its portfolio investments, annual strategic planning, financing, and management decisions and endeavors to provide the benefit of past experience to its entrepreneurs, and encourage inter-company relationships.
  • The Company also consults and advises entrepreneurs in relation to investment, mergers and acquisitions, and strategic relationships.
  • The Company Ventures is currently evaluating small investments in web-based business opportunities.
  • The Company’s portfolio companies include real estate, web businesses, apparel, publishing and hardware.

 

The company’s current Portfolio Investment includes:

 

  1. com – FreeLegalAid.com is a simple search engine for providing free legal resources. The site is built on an advertising model, and has grown significantly since its inception in 1997.
  2. com – LetterPOP is an online newsletter creation tool with a powerful email marketing component.  Use LetterPOP to create amazing visual communications that you can send to your mailing list, manage your contacts, and much more!
  3. Coastal Discount Realty – Coastal Discount Realty is an early stage web-based discount realty listing service servicing San Diego County. The business offers a flat fee MLS listing service, and ala carte real estate brokering services.
  4. BIZ – FileOnline.BIZ is a self-help legal filing service that offers users a means to file incorporation documents in any state. The site also allows users to request a copyright filing or a trademark filing. Useful information and links are provided to enable users to “help themselves” using the site.
  5. GetinBusiness! – GetinBusiness! is a resource center for small businesses, hosting the blog and podcast of Dana Robinson, entrepreneur, attorney and know-it-all.  Download Dana’s inexpensive “GetinBusiness Guides” and grab free business and legal advice.
  6. Lexington Court Appartments – Lexington Court Apartments are in Downtown Phoenix, in the Roosevelt Arts District, surrounded by redeveloped properties. The apartments have been zoned for high rise, entitlements granted for redevelopment, and La Jolla Ventures plans to either develop the property with a development partner, or sell the property at an appreciated value.
  7. Garfield Commons – Garfield Commons owns a 9 unit apartment complex that has received several grants for rehabilitation. The property has been through a City of Phoenix rehab construction grant, and was completed 2009.
  8. Fieldcrest Investments – Fieldcrest Investments is a Lafayette, Louisiana real estate acquisition and development company. The company owns three parcels in Lafayette, and has completed a subdivision of 64 parcels on one lot that are currently under construction of low-priced single family homes.
  9. Surya Rising – Surya Rising is the first app incubator to challenge its participants to launch an app within 90 days.  The participants bring their mobile apps and concepts to the company, where they are incubated and managed from inception to launch.  The company has 30 apps under development and in the iTunes app store.
  10. ChristianAudio – ChristianAudio is the largest online publisher of Christian audio books. The company operates several publishing imprints, and sells audio books throughout the United States through retail book stores and other retail outlets. The company owns a proprietary “Audible style” downloadable audio book website where it offers its own products and third party products.
  11. Esquivel Designs – Esquivel Designs is an Orange County based high end men’s shoe maker. George Esquivel, 2009 CFDA/Vogue Fashion Fund finalist, and shoe maker to rock stars and Hollywood elite, designs and manufactures bespoke footwear from its manufacturing plant in Southern California. The company has distribution in China through the Esquviel store in Beijing.  Find Esquivel shoes in Bergdorf Goodman NYC, Brown’s London, Net-a-porter.com and other fine stores.
  12. Modern Cooperage – Modern Cooperage is a two year old manufacturer of patented wine barrel systems that provide a means to use a re-usable stainless barrel with the full exposure to oak staves.  Products are in testing with some of the largest wineries in the United States.
  13. Cloud Canvas – loud Canvas is a browser application development platform, providing an array of browser based apps, as well as a platform for developers to deploy and monetize browser apps.  The CloudCanvas application platform allows 3rd party developers to build applications that run on other websites. By using CloudCanvas’s development platform, developers do not have to worry about cross-browser support (Firefox, Chrome and Internet Explorer), and can focus on the application (not on the back-end technology)

Non – Current Investments:

Particulars No. of Shares Rs. In Crs
In Equity Shares    
Fortune Fiancial Services Ltd 2642329 20.111837
Sadbhav Engineering Ltd 2400 0.01
     
In Equity Shares- Subsidiary Co    
ITI Capital Holdings 450000 16.33
Intime Spectrum Pvt Ltd 1250000 1.25
Caladium Properties Pvt Ltd 10000 0.01
Crest Wealth Management Pvt Ltd 4250000 2.98
     
In Equity Shares – Associate Co    
*Classic Mall Development co 3247760 62.9
Starboard Hotels 2499374 2.5
Edelweiss Fund Advisors 500000 0.05
Escort Developers 25000 1.6
Ramayana Realtors 903591 12.82
Classic Housing Projects 5000 0.005
Tamarind Tours 500000 0.05
     
In Equity Shares – Other Co    
Vamona Developers 1250000 1.25
Alliance Spaces 102353 3.92

 

Classic Mall Development Co. (Crest Ltd holds 42.19% ) engages in Real Estate business in Chennai and now it operates as the subsidiary of  The Pheonix Mills Ltd. Sharyans Ltd has acquired stake in Classic Mall jointly with Kshitij Venture Capital fund.

(http://www.thehindubusinessline.com/companies/announcements/others/acquisition-of-stake-in-classic-mall-development-company-private-limited/article5019025.ece)

 

Classic Mall Development Co. is inolved in Real estate activities with own or leased property. [This class includes buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, developing and subdividing real estate into lots etc. Also included are development and sale of land and cemetery lots, operating of apartment hotels and residential mobile home sites.

 

Management:

  • Vasudeo Galkar – Chairman
  • Vijay Choraria – Managing Director
  • Vishal Mehta – CFO

 

The Equity Capital is @ Rs 17.37 Crs consisting of 173700000 equity Shares of FV Rs 10 currently held.

None Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 Pishu V Chainani 2500000 14.39
2 Hypons Fund Ltd 510000 2.94
3 Orange Mauritius Investments Ltd 630000 3.63
4 General Insurance Corporation of India 337373 1.94
5 Miraj Marketing Company LLP 301754 1.74
6 United India Insurance Company Ltd 286692 1.65
7 Pulkit N Sekhseria 225000 1.3
  Total 4790819 27.58

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 17.37 17.37 17.37 17.37 14.87 14.87
Networth 253 217 197 188 169 172
Total Debt 63 28 59 47 48 25
Net Sales 34 178 174 141 134 121
Other Income 15 5 4 2 5 5
PAT 37.19 22.33 10.15 1.41 -0.93 -10.22
Book Value (Rs) 146 125 113 108 114 116
EPS (Rs) 21.41 12.86 5.84 0.81 -0.63 -6.87

 

During the year FY13 additional 2500000 equity shares were issued at face value of Rs.10 per share.

Radico Khaitan Ltd

by with No Comment Scrip Watch

Radico Khaitan Ltd
Breweries & Distilleries
FV – Rs 2; 52wks H/L –130.9/78.10; TTQ – 6 K; CMP – Rs 89 (As On May 13th 2016; 11.00);                             

     Market Cap – Rs 1138.83 Crs

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
26.61 905 198 1543 76.89 68 5.78 15.4 54.14 1.3 40.46 0.38

 

Consolidated Financials and Valuations for Q4 FY16  


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
26.61 905 198 377 14.77 68 6.33 14.06 54.14 1.3 40.46 0.38

 Valuation Parameters:

  1. Long Term Debt to Equity – 0.22
  2. ROE % – 8.5
  3. Market Cap/Sales – 0.7

The company has roped in celebrity Hrithik Roshan as its brand ambassador.

Key Updates:

  • In the IMFL segment, more than 20% of the company’s volumes come from prestige and above products, which is a high margin business, and the balance volumes come from regular and others brands.
  • Since the last eight years, the company’s prestige and above brands’ volume has reported a CAGR of ~23% and their share in the product mix has increased from 7.9% in FY2009 to 24% in FY2016.
  • RKL has a strong sales and distribution network with a presence in retail and offtrade outlets in the relevant segments in different parts of India. Currently, the company is selling its products through over 45,000 retail outlets and over 5,000 on-premise outlets.
  • The company exports to about 60 countries worldwide and has made a good presence in the international markets.

Bulk Deals:

Deal Date Client Name Deal Type Quantity Price
19-Jan-16 Morgan Stanley Asia Singapore Pte P 1600000 108
19-Jan-16 Ashish Dhawan S 2000000 108.01
26-Aug-15 Morgan Stanley Asia Singapore Pte P 1460000 89.66
26-Aug-15 Bajaj Allianz Life Insurance Co.Ltd S 1500000 89.67

 

During the quarter the Karnataka government gave a price increase (`35/case) to the company which would be effective from July 1, 2016 and would contribute towards margin improvement. Further, the government of Uttar Pradesh has reduced the excise duty on Indian made foreign liquor (IMFL) by 20-25% with effect from April 1, 2016, which is expected to result in an increase in IMFL sales volume in the state going forward.

These policy actions should significantly benefit the company as the two states account for ~20% of its volumes.

Overview:

  • Radico Khaitan Ltd is an spirits company engaged in the manufacture of liquor.
  • The company has three distilleries and one JV with total capacity of 150mn litres and 33 bottling units spread across the country.
  • The company is one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant entry barriers.
  • RKL’s brands include After Dark Whisky, Magic Moments Vodka, Morpheus Brandy, Contessa Rum, Old Admiral Brandy and 8 PM.
  • Its liquor business also includes rectified spirit and country liquor. Its alcohol products include rectified spirit, silent spirit, cane juice spirit, malt spirit, grain spirit and ethanol.
  • The company’s PET division produces a range of PET bottles and jars for industries such as pharmaceutical, cosmetics, home and personal care, edible oil and confectionery.

Management:

  • Lalit Khaitan – CMD
  • Abhishek Khaitan – CEO
  • Dilip Banthiya – CFO

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 Reliance Capital Trustee Company Ltd A/C Reliance Growth Fund 12458871 9.36
2 HSBC Global Investment Funds A/C Hsbc GIF Mauritius Ltd 9980624 7.5
3 Ashish Dhawan 4934195 3.71
4 Morgan Stanley (Singapore) Pte 3676897 2.76
5 SBI Small and Midcap Fund 2890556 2.17
6 BNP Paribas Arbitrage 2660081 2
7 TIMF Holdings 2450000 1.84
8 Birla Sun Life Trustee Company Pvt Ltd A/c Birla Sun Life Equity Fund 2143079 1.61
9 Acacia Partners LP 1512000 1.14
10 Polus Global Fund 1455000 1.09
  Total 44161303 33.19

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 26.61 26.61 26.61 26.58 26.54 26.51
Networth 905 829 781 728 695 651
Total Debt 708 738 825 719 615 309
Net Sales 1543 1534 1488 1289 1165 957
Other Income 35 45 37 30 21 11
PAT 76.89 67.64 71.26 77.28 63.66 72.8
Book Value (Rs) 68 62 59 55 52 49
EPS (Rs) 5.78 5.08 5.36 5.81 4.80 5.49

 

The company has not performed well in the last two years due to increasing raw material costs (ENA is a key raw material) and with it not receiving significant price hikes from various states.

The company reported a net profit of 14.8cr  on account of higher interest costs and taxes.

The company made repayment of 67.8 Crs during the year FY15.

(*ENA – Extra Neutral Alcohol)

Risks:

  • Change in Legal Drinking Age.
  • Change in Tax.
  • Competition from International Markets and Forex rate Fluctuations.
  • Changing Consumer Preferences.
  • Increase in Raw Material Prices.

 

 

Orient Cement Ltd

by with No Comment Scrip Watch

Orient Cement Ltd
Cement and Cement Products
FV – Re 1; 52wks H/L – 198/128; TTQ – 15000; CMP (May 12, 2016) – Rs 155;

Market Cap – Rs 3167 Crs

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


Equity Capital
Net worth
Long Term
Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
20.49 1016 1244 1509 62 50 3.03 51.32 15.97 3.11 37.5

 

Valuation Parameters

  1. EV/EBITDA: 24.25
  2. EV/Share: Rs 217
  3. EV/Sale: 2.94
  4. Market Cap/ Sale: 2.09
  5. Debt to Equity: 1.22
  6. RoI: 6.1 %
  • In September 2015, Orient Cement commissioned its new plant located near Chittapur, District Gulbarga, Karnataka and has an installed capacity of 3 million tonnes per annum (MTPA). The company now has a total capacity of 8 MT including the recently commissioned capacity in Karnataka. The company had invested Rs 2000 Crs in the Karnataka plant.
  • It sells 60% of its cement production in Maharashtra and close to 40% in Telangana. Nearly 80% of its sales are in the trade segment with a focus on rural housing.
  • Orient Cement has set a target of achieving 15Mt/yr production capacity by the end of 2020. The company is now looking at acquiring a few production plants with 2Mt/yr and 3Mt/yr production capacities in eastern India.

Recent Updates

  • The Company’s fourth-quarter net profit fell 77% to Rs 19 Crs from Rs 85 Crs in the same period last year, largely due to a sharp fall in realisation. Overall realisation was down 17%to Rs 3228 per tonne.
  • The ramp up of production at the new plant in Karnataka’s Gulbarga district is progressing well and helped achieve a volume growth of 40%.
  • The capacity utilisation has touched 44% at new plant, while it was 86% at the old plant. Overall capacity utilisation stood at 74%. The company targets 60% capacity utilisation at new plant for the coming year and 86-88% for the old plants.
  • For Q4 of FY 16, the company did a total volume of nearly 13.9 lakhs tonne. The company is targeting sales volume of 14.5-15 lakhs tonnes in coming quarters and also looking at higher usage of pet coke as cement plant stabilise.
  • Given the Debt to equity at 1.2, the company is comfortable with it and has no plan to bring it down in current year.
  • Remuneration paid to MD and CEO of the company for FY 16has exceeded the limit prescribed under section 197 read with the Schedule V of the Companies Act.
  • Aiming for 14.5-15 lakh tonne sales: Orient Cement

Bulk Deals

Date Company Client Transaction Quantity Traded Price (Rs)
15-May-2014 Orient Cement (NSE) Jhunjhunwala Rakesh Radheyshyam BUY 1710000 53.10
15-May-2014 Orient Cement (NSE) Nirmal Bang Securuties Pvt Ltd Error Account BUY 1050000 52.00
15-May-2014 Orient Cement (NSE) Nirmal Bang Securuties Pvt Ltd Error Account SELL 1050000 52.00

 

Block Deals

Date Exchange Quantity Price (Rs) Value(Rs Crs) Time
05-01-2016 BSE 500000 152.50 7.63 10:50
23-11-2015 NSE 350000 165.00 5.78 15:26
23-11-2015 NSE 400000 165.00 6.6 15:05
29-05-2015 BSE 970000 178.00 17.27 11:35
29-05-2015 NSE 1000849 178.00 17.82 11:35
22-05-2015 BSE 444207 185.00 8.22 13:58
22-05-2015 BSE 559167 185.00 10.34 13:57
23-01-2015 NSE 500012 188.95 9.45 13:33

 

Overview:

  • The company started its operations in 1982 and is engaged in the manufacture and sale of cement.
  • The Company’s manufacturing facilities are located at Devapur in Telangana and Jalgaon in Maharashtra.
  • The Company’s products include Birla A1 Premium Cement, Birla A1 Premium Cement-OPC 53 Grade and Birla A1 Premium Cement-OPC 43 Grade. The Company’s Greenfield cement plant, located near Chittapur, District Gulbarga, Karnataka, has an installed capacity of approximately three million tons per annum (MTPA).
  • The Company is part of the CK Birla Group, which operates in three industry clusters, including technology and automotive, home and building, and healthcare and education.
  • The Company operates through a network of over 40 offices.
  • Orient Cement operates largely in rural and semi-urban markets in Telangana and Maharashtra. Its target customer is the independent house builder in these markets. Therefore, dependence on the organised real-estate sector is small.

Management:

  • Mr C K Birla is the Chairman
  • Mr Desh Deepak Khetrapal is the MD and the CEO

 

Major Non – Promoter Holdings:

Sr No.  Non-Promoters % Stake
1 UTI-MID Cap Fund 1.22
2 Franklin Templeton Mutual Fund A/C Franklin India High Growth Companies Fund 1.81
3 Reliance Capital Trustee Co. Ltd.-A/C Reliancegrowth Fund 3.53
4 Reliance Capital Trustee Co. Ltd.-A/C Reliancesmall CAP Fund 1.5
5 ICICI Prudential Value Discovery Fund 2.03
6 Government Pension Fund Global 1.45
7 India Capital Fund Limited 1.9
8 Life Insurance Corporation of India 2.06
9 National Insurance Company Ltd. 2.37
10 ICICI Prudential Life Insurance Company Ltd. 1.61
11 HDFC Standard Life Insurance Company Limited 1.79
12 Jhunjhunwala Rakesh Radheshyam 1.22
13 Sri Govinddeo Educational Institute 1.47
14 Shri Venkateshwara Educational Institute 1.39
15 Rukmani Birla Educational Society 1.69
16 Shri Jagannath Educational Institute 1.55
17 Birla Institute of Technology and Science 1.72

 

Standalone Financial Trends ~ Amt in Rs Crs

  FY 16 FY 15 FY 14 FY 13
Equity Paid Up 20.49 20.49 20.49 20.49
Networth 1016 976 829 757
Long Term Debt 1244 1064 45 46
Total Sales 1509 1547 1430 1502
PAT 62 195 101 162
EPS (Rs) 3.03 9.52 4.93 7.91
Book Value (Rs) 50 48 40 37

 

  • The costs related to the commissioning/stabilisation of the new integrated unit at Chittapur (Karnataka) has affected the firm’s operating and net profit numbers in the last two quarters of FY16.
  • Increase in long term borrowing in FY 15 was to finance the new plant at Karnataka.

 

AYM Syntex Ltd

by with No Comment Scrip Watch

AYM Syntex Ltd
Textiles
FV – Rs 10; 52wks H/L – 163.5/39.55; TTQ – 5620; CMP (May 12, 2016) – Rs 103.8;
Market Cap – Rs 407 Crs

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


Equity Capital
Net worth
Long Term
Debt
Total  
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry
P/E
P/BV
Promoter’s
Stake
39.24 194 167 801 48 49 12.23 8.49 32.58 2.12 70.1

 

Valuation Parameters

  1. EV/EBITDA: 4.97
  2. EV/Share: Rs 134
  3. EV/Sale: 0.66
  4. Market Cap/ Sale: 0.51
  5. Debt to Equity: 0.86
  6. RoI: 24.74 %

Bulk Deals

Date Company Client Transaction Quantity Traded Price (Rs)
03-Aug-2015 AYM Syntex (BSE) ASHISH RAMESHCHANDRA KACHOLIA BUY 289007 130.44
31-Jul-2015 AYM Syntex (BSE) ASHISH RAMESHCHANDRA KACHOLIA BUY 615143 124.32
30-Jul-2015 AYM Syntex (BSE) ASHISH RAMESHCHANDRA KACHOLIA BUY 295850 118.08
16-Jan-2015 AYM Syntex (BSE) SOMESH MEHROTRA BUY 331000 45.78

 

Insider Trades

Date Person  Buy / Sell Transaction Type  No of Shares Price (Rs) Value 
(Rs Lakhs)
Aug 24, 2015 VLS Capital Ltd  Sell Market 13,500 130.05 17.56
Aug 24, 2015 VLS Capital Ltd  Sell Market 36,500 130.05 47.47
Aug 24, 2015 VLS Capital Ltd  Sell Market 50,000 130.05 65.03
Aug 24, 2015 VLS Capital Ltd  Sell Market 1,00,000 130.05 130.05
Aug 24, 2015 VLS Capital Ltd  Sell Market 27,000 130.05 35.11


https://www.valueresearchonline.com/stocks/snapshot.asp?code=4442

  • VLS Capital held 1.36% stake in the company until September 2015.

Welspun Group is in process of carving out the yarn-spinning business, AYM Syntex, which will be managed by cofounder Rajesh Mandawewala’s elder son Abhishek. Rajesh Mandawewala, group managing director, is in the process of purchasing partner and Chairman BK Goenka’s stake in AYM Syntex. The arrangement shall lead to no change in the current promoter shareholding pattern of the group. Abhishek Mandawewala took over as a whole time director in August 2015. ~ Succession Planning: Welspun Group to hive off yarn-spinning business for next generation

 

Recent Updates

Overview:

  • AYM Syntex Limited, formerly Welspun Syntex Limited is a manufacturer and exporter of polyester texturized filament yarn and nylon filament yarn.
  • The Company operates through Synthetic Yarn segment.
  • The Company’s plants are located at Silvassa and Palghar in Thane, India. The Company’s product categories include bulk continuous filament yarn (BCF), polyester partially oriented yarn (POY), polyester fully drawn yarns (FDY), polyester mono filament yarns (PMFY), polyester filament yarn (PFY), polyester draw texturized yarn (DTY/PTY), air textured yarns (PATY) and specialty polyester filament yarns (SPFY).
  • Its POY category consists of products, including full dull raw white poy, semi dull raw white poy, bright raw white poy, super bright raw white poy, dope dyed black poy, dope dyed bright poy and bright cationic poy.
  • The Company’s PMFY category consists of products, including SEMI DULL Raw White, Bright Trilobal and Dope Dyed.
  • The Company is in the process of doubling capacity of BCF yarn, increasing capacity of texturized yarn, and mother yarn.

Welspun consolidating infra business, Apollo Global to get 12% of Welspun Projects 

Welspun to merge investment firms to unlock value, raise funds

 

Management:

  • Mr B A Kale is the Executive Director and the CEO.
  • Mr Abhishek Mandawewala is the Whole Time Director

 

 Shareholding Pattern as on March 31, 2016

 

The Equity Capital is @Rs 39.24 Crs consisting of 39239568 Equity Shares of FV Rs 10 currently held as under

 

None of the promoter’s holding is pledged

Sr No. Major Non-Promoter % Stake
1 Sanjeev Rajendraprasad Bharadia 1.04
2 Sadhana Mehrotra 3.44
3 Ashish Kacholia 4.85

 

Share Price Trend

 Standalone Financial Trends ~ Amt in Rs Crs

  FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 39.24 39.24 39.24 39.24* 23.64 23.64
Networth 194 146 113 108 79 74
Long Term Debt 167 127 116 95 50 29
Total Sales 801 835 896 776 612 503
PAT 48 43** 19 16 12 13
EPS (Rs) 12.23 10.96 4.84 4.08 3.06 3.31
Book Value (Rs) 49 37 29 28 20 19

 

  • Networth grew at a CAGR of 17.43% over the last six years while Total sales grew at a CAGR of 8% over the same period. PAT has grown at a CAGR of 24.32% in the same period.
  • *The Company had allotted 16000000 6% Optionally Convertible Cumulative Preference Shares of Rs 10 each at par to Krishiraj Trading Limited, promoter of the Company, which is to be converted into Equity Shares at any time within 18 months from the date of allotment @ Rs. 10.26 per share. The above shares were converted into 15594541 Equity shares at Rs. 10.26 per share on March 22, 2013. The paid up equity share capital thus increased from Rs 23.64 Crs in FY 12 to Rs 39.24 Crs in FY 13.
  • **Turnover of the Company reduced due to reduction in price of raw materials and finished goods following slash in price of crude oil. Concentration on high margin products, development of new products and production of BCF yarn coupled with reduction in prices of raw materials following slash in price of crude oil has increased profitabilityof the Company.

K.M. Sugar Mills Ltd

by with No Comment Scrip Watch
  1. K.M. Sugar Mills Ltd
    Plastic Products
    FV – Rs 2; 52wks H/L –7.7/1.65; TTQ – 21 K; CMP – Rs 6.80 (As On May 11th 2016; 10:30) ;

Market Cap – Rs 62.56 Crs

Standalone Financials and Valuations for 9Months FY16 (Amt in Rs.Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
18.40 28 38 235 6.99 3 0.76 8.9 25.25 2.27 66.56 2.27

 

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
P/BV		 Beta
18.40 18 34 558 7.49 2 0.81 8.4 3.4 2.27

 

Overview:

  • M. Sugar Mills Ltd. is an India-based company, engaged in the manufacturing of sugar.
  • The Company operates in sugar division, distillery division and power division. The Company manufactures white crystal sugar, which is used for human consumption and in the industries, such as food, beverage and soft drinks.
  • It manufactures and sells three grades of sugar, such as L 31, M 31 and S 31.
  • Its sugar manufacturing facility is in Faizabad district of Uttar Pradesh.
  • It has its own distillery unit of capacity 45 KLPD and manufactures rectified spirit, Ethanol and extra neutral alcohol (ENA) at its facility at Motinagar, Faizabad.
  • The Company’s Bio Compost unit manufactures bio fertilizer which is marketed in the name of Moti Super. The Bio fertilizer is manufactured by utilizing the by-product of sugar unit, such as Press Mud and the by-product of distillery division, such as spent wash along with culture.

 

Industry Updates:

  • India is the second largest producer of sugar in the world and its production’s share in 2014-15 was 16%.
  • The Government hiked the import duty on sugar 40% from 15% to curb inflow of cheaper sweetener, a move that could see a rise in sugar prices.
  • notifies export subsidy of Rs. 4,000/- per ton for raw sugar.

Management:

  • L. K. Jhunjhunwala – Chairman
  • Aditya Jhunjhunwala – MD

Products:

  • Sugar

The company manufactures and sells three grades of Sugar in jute bags as well as in PP bags. On the basis of quality and size products are as under:

  1. L 31
  2. M 31
  3. M 30
  4. S 31
  5. S 30
  • Distillery

KMSML manufactures Rectified Spirit, Ethanol and Extra Neutral Alcohol (ENA) at its facility at Motinagar, Faizabad. Out of total production of rectified spirit 85% is grade-I quality and 15% is Grade-II.

  1. Grade-I rectified spirit
  2. Grade-II rectified spirit
  3. Extra Neutral Alcohol
  4. Fuel Grade Ethanol
  • Clean Power
  • The company has its own baggased based co-gen Power plant with the capacity of 25 MW in Motinagar, Faizabad, Uttar Pradesh.
  • The company supply the power to the Uttar Pradesh Power Corporation Limited (UPPCL).
  • Bio-Manure
  • The Bio Compost unit manufactures bio fertilizer which is marketed in the name of ‘Moti Super’. The Bio Fertilizer is manufactured by utilizing the by-product of sugar unit, i.e. Press Mud and the e by-product of Distillery division, i.e. spent wash along with culture.
  • The Bio Fertilizer is manufactured in our own plant with a process called ‘Triochem process, which takes around 45 days for converting press mud into bio-compost
  • Country Liquor
  • The company also entered into the business bottling of alcohol and set-up the bottling plant in Bapudham Motihari, Bihar.
  • The unit supplies the country liquor in Pet Bottles of 200 ML with the capacity of 4 lacs Bottles per day. The country liquor is supplied to the Bihar State Beverage Corporation Limited (BSBCL) in the districts East Champaran and West Champaran.

 

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 V I P Growth Fund Pvt Ltd 1522133 1.65
2 Kunal Rakesh Agarwal 1845000 2.01
3 Manish Patodia HUF 1099208 1.19
  Total 4466341 4.85

 

Standalone Financial Trends (In Rs.Crs):

Particulars FY15 FY13 FY12 FY11
Equity Paid Up 18.4 18.4 18.4 18.4
Networth 18 10 -3 4
Total Debt 124 93 66 80
Net Sales 558 275 257 291
Other Income 7 2.5 1.8 3.4
PAT 7.49 12.6 -6.24 -11.26
Book Value (Rs) 2 1 0 0
EPS (Rs) 0.81 1.34 -0.66 -1.20

 

The figures are of 18 months as of 31st March 2015 and others year ended 31th September.

 

 

 

 

 

 

 

 

 

 

 

 

Krebs Biochemicals & Industries Ltd

by with No Comment Scrip Watch

Krebs Biochemicals & Industries Ltd
Pharmaceuticals
FV – Rs 10; 52wks H/L –165/76.90; TTQ – 2 K; CMP – Rs 103 (As On May 5th 2016; 11:00) ;

Market Cap – Rs 127.87 Crs

Standalone Financials and Valuations for 9Months FY16 (Amt in Rs.Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
12.41 -14 65 0.9 -10.31 -11 – 8.31 – 33.53 – 57.67 –

 

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


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
P/BV		 Beta
9.51 -5 57 0.01 -7.84 -22 -8.24 – – –

 

IPCA Labs picked up 23 Lacs shares (26%) in Krebs Biochemicals ltd through an open offer at Rs.54/- per share.

(http://www.thehindubusinessline.com/markets/ipca-labs-to-pick-up-26-stake-in-krebs-bio/article6891198.ece)

The successful completion of USFDA (United States of Food and Drug administration) audit and its approval for Unit-I is an added advantage for the Company to attract good customers.

The company didn’t record turnover during the period on account of closure of both the manufacturing plants due to power shortage in Andhra Pradesh.

Reserves of the company decreased from Rs.6 Crs to Rs.14 Crs due to increased losses during the year.

Overview:

  • Krebs Biochemicals and Industries Ltd is an India-based company engaged in the business of manufacture of active pharmaceutical ingredients.
  • The Company is producing a number of pain killers, anti-asthmatic and anti-human immunodeficiency virus (HIV) drugs under contract manufacturing.
  • The Company offers Simvastatin and Lovastatin as anti-cholesterols, and Ephedrine and Pseudo ephedrine as anti-asthmatic.
  • The Company’s products under development include Adenine as an intermediate for Tenofovir Anti HIV; Atorvastatin Intermediates as Anti Cholesterols; Phenylephrine for Cough and cold, and Orlistat against obesity.

The Company has two manufacturing facilities one at Regadichelaka, Nellore and another one at Kothapalli Village, Kasimkota Mandal, Vishakapatnam, both in India.

The company has entered in to an agreement with M/s Edelweiss Asset Reconstruction Co. Ltd. for repayment of the assigned debt by Exim Bank in instalments commencing from June, 2015.

 

Industry Updates:

  • Global Pharmaceutical Industry is estimated now to be US $ 1 trillion and is growing at a rate of 4-5% per annum. Pharmaceutical industry is facing many challenges and uncertainties.
  • A number of Big Generics based Pharmaceutical companies have emerged in India over the past decade and are driving the growth in the Pharmaceutical sector in India.
  • India’s own requirement of pharmaceuticals is seeing a steady and significantly higher than world average growth. This is the very reason large Pharma companies are eyeing the Indian market and trying to grab a slice of the pie by way of acquisitions and large marketing outlays.

Management:

  • Dr. R. T. Ravi – Chairman
  • Mr. Avinash Ravi – MD

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 K. Satish 245869 1.98
2 Edelweiss Asset Reconstruction Co.Ltd 150000 1.21
3 Shaaji palliyath 150000 1.21
4 Pinky Ventures Private Ltd 600000 4.83
5 Sun Pharmaceutical Industries Ltd 1050000 8.46
  Total 2195869 17.69

 

 

Standalone Financial Trends (In Rs.Crs):

Particulars FY15 FY14 FY13 FY12 FY11
Equity Paid Up 9.51 9.51 9.51 9.51 9.05
Networth -5 4 8 23 39
Total Debt 57 25 76 80 85
Net Sales 0.01 0.2 18 74 79
Other Income 0.01 0.2 6 3 7
PAT -7.84 -4.35 -15.2 -17.44 -6.68
Book Value (Rs) -5 4 8 24 43
EPS (Rs) -8.24 -4.57 -15.98 -18.34 -7.38

 

The numbers are of 6 months ended FY15 and 15 months for FY14 (Sept 14) and same for FY13.

Only FY11 and FY12 are 12 months ended.

The Company announced to consider and allot 650000 equity shares and 680000 warrants convertible to Equity shares of Rs.10 each on preferential basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

Warning!!! ~ Caution on Sang Froid Labs at BSE Upper Circuit Rs 8.71!

by with No Comment Scrip Tease

How can BSE even have allowed Sang Froid to be directly listed from October 2015 ! ?

Bulk Trades ~ Lakhs of  Shares Trading Volume ~ Buy Reco being circulated under Share Khan Premium Service  with website as sharkhan.in  which just flashes on your screen repeatedly!!!

PLEASE STAY AWAY FROM SANG FROID LABS

SEBI must investigate how BSE allowed this Listing & the trading patterns in it….Wonder if  the Broking Group Sharekhan  & Pharma Co Ajanta Pharma will ignore that their names have been misused liked this for recommending Sang Froid…..I don’t believe Sharekhan has recommended this….& I dont believe Ajanta Pharma is associated with this company in any way let alone it being recommended as a Venture with it !

Right Now  this the Trap being set on the BSE Counter for Retail Suckers to buy into  with the reco on mobile circulation stating to buy 10000/20000 shares for  immediate rise to Rs 12/15 in just two days  for this Ajanta Pharma Venture !…Oh ! Stoploss of Rs 7 recommended too !

Market Depth (10 Mar 2016)
Buy Sell
Qty Price Price Qty
7,84,413 8.70 8.71 16,101
6,47,460 8.69 — —
7,59,942 8.68 — —
5,43,568 8.67 — —
5,16,346 8.66 —

 

This Company does nothing ! though it says on it’s website it wants to do this and that !…suppose to be in pharma….has no real business….At March 31,2014 it had no employees (Employee expenses  were only Rs 48000! & Revenue only Rs 1.75 lakhs).KMP were Ajay  & Vijay Kumar Sachdev & and Jitendra H Gohel.

Equity Issued & Subscribed was Rs 5.1 crs but paid up was just Rs 2.80 crs which included forfeited shares.The Negative Reserves were Rs 2.88 crs giving a negative networth at March 31,2014.The auditor was a Delhi Proprietory Firm M Madan & Co who signed the FY 14 Accounts in New Delhi on August 30,2014.There are barely any other Assets & Liabilities

FY 15  Statements show a different auditor,Ahmedabad based Proprietor S Kansal &  Associates who signed the FY 15 Statements in Ahmedabad on April 14,2015,within a fortnight of year closure

The Equity now shows Rs 5.1 crs & Negative Reserves are now lower at Rs 2.02  crs given a positive Networth of Rs 3.08 crs which has been applied to Short Term Advances of Rs 1.42 crs & Other Current Assets of Rs 1.7 crs ~ no info on how the Negative reserves dropped so much given that topline & bottomline figures are worse than Lemon Juice Collections by a Street Vendor !…how did subscribed equity of Rs 5.1 crs which was paid up just Rs 2.80 crs become paid up Rs 5.1 crs?

52 Week High was Rs 24.40 on january 8, 2016 and  current levels of Rs 8.7 are near lows

DON’T GET SEDUCED OR TEMPTED

WHY IN THE HELL HAS BSE ALLOWED THIS LISTING !  

Hey BSE CEO,Ashish Chauhan what’s Happening here ! ? 

PS  

Sharekhan,who’s name has been used to bulk recommend this on mobiles has issued a warning that they are investigating who is behind this….BSE Platform continues to be misused,and I daresay deliberately allowed to do so, by such Listed Companies that ought not to have been allowed listing in the first place