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Jaiprakash Associates Ltd

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Jaiprakash Associates Ltd

Jaiprakash Associates Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L – 29.65/6.1; TTQ – 65 Lacs; CMP – Rs 27 (As On July 25, 2017);                      

            Market Cap – Rs 6665 Crs

Consolidated Financials and Valuations for FY17 (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
486.49 3810 26640 14260 -9413 19 -38.7 19.74 1.7 39.28

 

Consolidated Financials and Valuations for FY16


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
486.49 13084 53379 17407 -3345 54 -13.8 19.74 0.5 39.34

 

Valuation Parameters:

  1. Long Term Debt to Equity – 7
  2. ROE % – NA
  3. Market Cap/Sales – 0.5

The Company has an an order book of over Rs 10,000 crore and E&C business shows good prospects looking at India’s requirement of infrastructure. The Company will also be participating in irrigation, tunnels, hydro and metro projects and has the needed capacity to grow the EPC business and will endeavour to reach revenue of around Rs 6000 Crs by FY20 from this streamhttp://economictimes.indiatimes.com/markets/expert-view/jaiprakash-associates-aims-to-be-debt-light-even-zero-debt-manoj-gaur/articleshow/59483511.cms

 The Company has executed an agreement with Orient Cement Ltd for acquisition of Company’s 74% equity stake in Bhilai Jaypee Cement based on Enterprise Value of Rs.1450 Crs on cash free and Debt free basis. http://www.bseindia.com/xml-data/corpfiling/AttachHis/7c582ce7-a0c2-428e-bfaf-7714dc18de61.pdf

The Company has received Letter of Award from M/s National Highway Authority of India for the work of Four Laning of Biju Para – Kuru Section of NH-75 in the State of Jharkhand and the Contract Price is Rs. 144.1 Crs.

The Company along with its subsidiaries is the third largest cement producer in the country with 32.85 MTPA operative capacity.

Rs. 6960 Crs are in Projects under Development as per 31st March 2016

Restructuring:

The restructuring would involve division of the nearly Rs 30000 Crs debt into three parts. The first portion of about Rs 10000 Crs debt would be moved off the company’s balance sheet as it sells a significant portion of its cement businesses to UltraTech Cement Ltd. About Rs 13000 Crs worth land holdings of the company would be carved out as a special purpose vehicle under the control of the lenders and subjected to a long-term repayment schedule through sale of these properties.

The remaining debt would continue on the company’s books, representing the indebtedness of the remaining sustainable businesses. These would include the company’s residual cement business, engineering procurement and construction (EPC) business, five luxury hotels, power plants, a hospital and a sports business.

https://www.bloombergquint.com/business/2017/06/27/jaiprakash-associates-lenders-icici-bank-restructure-debt-three-parts

Overview:

  • Jaiprakash Associates Limited is a diversified infrastructure company.
  • The Company’s principal business activities include engineering, construction and real estate development, and manufacture of cement.
  • Its segments include Construction, which includes civil engineering construction/engineering, procurement and construction (EPC) contracts/expressway; Cement, which includes manufacture and sale of cement and clinker; Hotel/Hospitality, which includes hotels, golf course, resorts and spa; Sports Events, which includes sports-related events; Real Estate, which includes real estate development; Power, which includes generation and sale of energy; Investments, which includes investments in subsidiaries and joint ventures for cement, power, expressway and sports, among others, and Others, which includes coal, waste treatment plant, heavy engineering works, hitech castings and man power supply, among others.
  • It has operations in Haryana, Madhya Pradesh, Gujarat and Jharkhand, among others.
  • The Company has 21 Subsidiaries engaged in different business activities.

Management:

  • Manoj Gaur – CEO
  • Rahul Kumar – CFO

Divestment Initiatives:

  1. Sale of  Cement Plants in Gujarat by JCCL (Rs.3800 Crs)
  2. Sale of stake in Bokaro Jaypee Cement Ltd (Rs. 668 Crs)
  3. Sale of Cement Grinding Unit of the Company at Panipat, Haryana (Rs. 360 Crs)
  4. Sale of Baspa – II by JVPL (Rs. 9700 Crs)
  5. Sale of wind Power plants of 49 MW of the Company (Rs. 161 Crs)
  6. Sale of Cement Plants (Rs. 16189 Crs)

 

The Equity Capital is @ Rs 486.49 Crs consisting of 2432456975 equity Shares of FV Rs 2 currently held 

19.96% Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Non – Promoters No. of Shares held % of Shares held
Orbis Sicav 110906583 4.56
Orbis Global Equity Fund 35389474 1.45
Societe Generale 27357474 1.12
Life Insurance Corporation of India 108934905 4.48
Rakesh Jhunjhnwala 25000000 1.03

 

 

Non – Current Investments: (Equity – Quoted fully paid up)

Name No. of shares Rs. In Lacs
Capital Trust Ltd 15350 2
Indian Overseas Bank 721600 72
PNB Gilts Ltd 221200 50
TFCI 25000 5
Total   129

 

Segmented Results:

Particulars 31-03-2017 31-03-2016
Segment Revenue:    
Cement & Cement Products 5217 7042
Construction 1445 2196
Power 4283 4382
Hotels/Hospitality & Golf Course 239 238
Sports Events 18 21
Real Estate  –
Investments 1013 2951
Infrastructure 2186 2417
Fertilizers 197 87
Health Care 71 138
Others Unallocated 4 1
     
Segment Results:    
Cement & Cement Products -384 -83
Construction -357 109
Power 902 2034
Hotels/Hospitality & Golf Course 9 7
Sports Events -139 -186
Real Estate -43 184
Investments 2 -1
Infrastructure -289 978
Fertilizers 188 168
Health Care -87 -32
Others Unallocated -30 -40

 

Snapshot of Prices :

Year Open
(Rs.)
High

(Rs.)

Low

(Rs.)

Close

(Rs.)

2004 117 195.1 73.45 189.95
2005 186 404 170 388.8
2006 388 740 280 726.4
2007 728.45 2,177.00 370.1 426.05
2008 430 510 47.05 83
2009* 84 270 60.05 146.9
2010 148 167.8 98.2 105.9
2011 107 110.55 51.25 52.4
2012 52.8 106.75 50.45 97
2013 97.9 102.55 28.4 54.5
2014 54.75 89.85 23.05 25.1
2015 25.1 29.45 7.95 11.46
2016 12.05 13.39 5.3 8.07
2017 8.05 29.65 7.9 27.75
  • Bonus Issue 1:2

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY17 FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 486.49 486.49 486.49 443.82 443.82 425.29 425.29
Networth 3810 13084 1496 10270 12553 11478 10779
Total Debt 30190 58250 61285 61101 55678 45371 41171
Net Sales 14260 17407 19812 19976 19129 15120 11630
Other Income 174 86 146 142 158 247 255
PAT -9413 -3345 -1735 -824.84 461.79 632.92 1792.82
Book Value (Rs) 16 54 6 46 57 54 51
EPS (Rs) -38.7 -13.8 -7.1 -3.7 2.1 3.0 8.4

 

The finance cost aggregating Rs.3679 Crs and high provision for depreciation of Rs.912 Crs were the two major factors leading to poor operating results of the Company.

Liabilities Directly Associated with Assets in Disposal Group Classified as held for Sale amounts to be Rs. 2031 Crs.

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