Scrip Watch

Eastern Gases Ltd

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Eastern Gases Ltd

Eastern Gases Ltd
Oil Marketing & Distribution
FV – Rs 10; 52wks H/L – 72.9/23.1; TTQ – 495; CMP – Rs 61 (As On April 17, 2017);                      

            Market Cap – Rs 90 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
15 33 11 269 3.14 22 2.09 29.2 18.29 2.8 56.83 1.04

 

Standalone Financials and Valuations for 9Mnths FY17


Equity Capital

Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

TTM EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
15 38 8 224 3.05 25 2.03 30 18.29 2.44 56.83 1.04

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.33
  2. ROE % – 10
  3. Market Cap/Sales – 0.33

Eastern Gases to consider purchasing shares of Asia LPG Pvt Ltd to extent of 100 percent and make it a unit of company. http://in.reuters.com/article/brief-eastern-gases-to-consider-purchasi-idINFWN1G60HO

 

With the new government policy PAHAL (DBTL) Scheme it has able to restrict the black marketing of subsidies LPG and thereby saves Rs 10,000 crores. It has predominantly increased the sale of cylinders at market price and thereby a huge opportunity to the parallel marketers to play.

The company has started two new LPG bottling plants at Bangalore & Hyderabad with its vision of pan India presence. This will add to company’s presence in Domestic, Commercial and Industrial segment. With various government checks on Domestic LPG supplies the company expects that the Domestic sector will also open up as Good Avenue in years to come.

The Authorized Equity Share Capital of the Company be and is hereby increased from Rs. 15 Crs divided into 15000000 (One Crores Fifty Lakhs) Equity Shares of Rs. 10 each to Rs. 18.08 CRs divided into 18080000 (One Crores Eighty Lakhs Eighty Thousand) Equity Shares of Rs. 10 each by creation of additional 3080000 (Thirty lakhs Eighty Thousand) Equity Shares of Rs. 10 amounting to Rs. 30800000 (Rupees Three Crores Eight Lakhs) by way of warrants, each ranking pari- passu in all respect with the existing Authorized Equity Share Capital. http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/0d7f9aa4-c51c-4f85-bb76-11b42c390f0b.pdf

Overview:

  • Eastern Gases Ltd iis engaged in manufacturing of gas and distributing of gaseous fuels.
  • The Company is engaged primarily in the business of bottling, trading of liquefied petroleum gas (LPG) and Retailing of AutoLPG.
  • It also manufactures propane, ammonia and butane, and supplies fuel to various companies in industrial houses.
  • The Company also undertakes execution of turnkey projects of gas installation customized according to the customers’ requirements on a long-term gas supply contract basis.
  • It can supply gas on long-term contract, as well as setup installations at the customer’s premises.
  • The Company also provides testing services, such as SRV Testing.
  • The Company is engaged in marketing its EAST GAS brand commercial LPG cylinders.
  • The Company has bottling plants located throughout India.
  • Its total installed capacity is 70,000 metric ton (MT) per annum.
  • It caters the commercial cylinder market of West Bengal, Bihar and Orissa from its own bottling plant situated at Durgapur.

Management:

  • Sushil Kr. Bhansali – CMD
  •  Ranjeet Kochar – CFO

The Equity Capital is @ Rs 15 Crs consisting of 15000000 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Sr.No Non – Promoters No. of shares held % of shares held
1 Rekha Creations Pvt. Ltd 314583 2.1
2 Demart Trading Pvt. Ltd 700000 4.67
3 ARP Commercial Pvt. Ltd 700000 4.67
4 Bircort Agro Pvt. Ltd 700000 4.67
5 Epixtar Trading Pvt. Ltd 700000 4.67

 

 

Standalone Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 15 15 15 15 8.56 7.98
Networth 33 31 28 25 13 10
Total Debt 52 48 39 19 10 11
Net Sales 269 230 228 210 136 90
Other Income 1 1 0.5 0.2 0.2 0.07
PAT 3.14 2.74 2.3 2.18 1.47 0.99
Book Value (Rs) 22 21 19 17 15 13
EPS (Rs) 2.09 1.83 1.53 1.45 1.72 1.24

 

The financial year 2015-16 witnessed the results of recent internal improvement programs and also reflected the positivity of the macro environment.

Net Sales increased by 17.26% and Net Profit increased by 14.84% .

 

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