Camphor & Allied Products Ltd


#21

As per the scheme of arrangement Every share of OAL will be eligible for 1.56 shares of CAL

OAL Shares are 0.4 cr
http://www.camphor-allied.com/FTC.pdf

CAL shares are 0.513cr
http://www.camphor-allied.com/FinT.pdf

so total diluted capital works out to be 0.513 + 1.56*0.4 , which is 1.13cr.

At current share price , post merger mcap will be more than 750cr

assuming 30 to 32cr of PAT , PE is more than 25 , which is fair range for a b2b business

correct me if the calc is wrong


(Mridul) #22

@Mahesh bhai …Reviewing this merger calculation…total capital post merger should be as follows…

Pre and post amalgamation capital structure of the Transferee Company is as follows…

Issued, Subscribed & Paid-up Share Capital Equity Shares of Rs. 10/- each

51,33,674 (5.13 cr) …pre
84,13,394* (8.41 cr)…post

  • Post- merger issued, subscribed and paid-up share capital is considered after cancellation of shares pursuant to the Scheme of Amalgamation.

Presently the Transferor Company (oal) holds appx. 57.66% of the Issued, Subscribed and Paid up Equity Share Capital totaling in all 29,60,280 shares of the Issued, Subscribed and Paid up Equity Share Capital of the Transferee Company (cal).

Post amalgamation in terms of the Scheme, the issued and paid up share capital of the Transferee Company will be aggregate of the existing Equity shares (net of cancellation of equity shares of the Transferee Company held by the Transferor Company) and shares to be issued to the Equity Shareholders of the Transferor Company under this Scheme.

So, we should calculate return ratios and p/e using 8.41 cr share capital i.e 84 lac shares.

Given, 32 cr combined PAT…results in EPS of 38.

Now, assuming 15 times trailing p/e to the merged market cap -> p/e = mkt cap/32 = 15 ~ 480 cr

Mkt cap/share = 480cr/.84 ~ 571 INR

So, aren’t the minority shareholders at loss with this merger (Just speaking from valuation perspective)? CMP is 715, and valuation post merger at same p/e i.e. 15 will be 571.


By the way, this news piece regarding pollution issues at its Bareilly plant surfaced in May. Not sure if this has already been cleared. Anyone?


#23

MY Calculations were wrong and as per company disclosures share capital will be 0.8413 cr, Merger might be beneficial for the company due to various integration synergies and compared to SH Khelkar the valuation picture will start looking quite interesting, Nil institutional ownership with good fundamentals makes it an interesting case, Recently KR Choksey has released a detailed report with good upside


(eyesice) #24

Sorry if this post is inappropriate here.

I had a query on Kanchi Karpooram. Does this company supply Camphor to CAP?


#25

Edelweiss has come out with a comprehensive report on F&F Industry and SH Kelkar, It higlights the kind of competitve barriers the industry has and why high valuations are justified and non cyclicality of this industry. Guess camphor and allied is also ripe for discovery and valuation re rating


(Aejas Lakhani) #26

Hi Mahesh,

Would you have access to the edelweiss report? Thanks


(Raminder) #27

Hi Mahesh, I can without reading that report say that your analysis is quite impressive.


#28

Its available free for all, you can visit the edelweiss website and go to research section


(Aejas Lakhani) #29

Thank you. Found it. How did you get hold of the oriental aromatic numbers? do you know their recent numbers for FY17?


(Satish Earthling) #30

http://www.bseindia.com/xml-data/corpfiling/AttachLive/e0c342da-5b1c-4605-9e1e-fe530aafaf84.pdf
NCLT Order sanctioning the Scheme of Amalgamation of Oriental Aromatics Limited (the ‚ÄėTransferor Company‚Äô) with Camphor and Allied Products Limited (the ‚ÄėTransferee Company‚Äô / the ‚ÄėCompany‚Äô)


(learning) #31

Is any one tracking this business. The results were flat in the last quarter. does company hold any concalls? @Mahesh do you still track this business - what are the future growth plans from company?


(Bhavesh) #32

I am wondering why EBITDA margins have fallen this quarter to 11% from 17% in Sep quarter. Weak results overall