GILLANDERS ARBUTHNOT cmp 113, market cap 242 crores.
This company is a conglomerate of various businesses which consists of
Tea, Yarns, Construction, Marketing, Waldies, Property, Power Plant.
CONSTRUCTION:
Modern India Construction Co. (MICCO), a Unit of Gillanders Arbuthnot & Co. Limited (GACL) , Kolkata, belongs to the KOTHARI GROUP. MICCOhas expanded in the last 18 years to become one of the leading engineering and turnkey contracting company in India. MICCO's expertise incorporates absorption of Basic Design of various Plants from the World Leaders of the same and translation of the design into a properly detailed engineered plant.
FABRICATION DIVISION at Sodepur makes Tanks, Pressure Vessels, Chimneys, Bunkers etc., -Heat Exchangers, -Building & Technological Structures, -Electric Arc Furnaces and Walking Beam Furnaces, -Power Winches, -HT & LT motor frames, -Ship Bulkhead modules.
TURNKEY/EPC DIVISION is involved with Blast Furnaces, Reheating Furnace, Desulphurisation of Hot Metal, Coke Oven Battery, Skin Pass Mill, Cold Rolling Mills, Continuous Galvanising Lines, Gasholders, Water Cooling Systems in BF & LD, Material Handling Plants, Structural Steelwork, Piping.
MICCO has an well-equipped Design / Drawing office at Kolkata, equipped with Latest AUTO-CAD manned by qualified Engineers and Draughtsman. MICCO is doing Mechanical, Piping, Structural, Electrical, Instrumentation, Automation drawings for Consultants and Technology Partners like DCL, EIL, TPE (Russia), MECON, DASTUR CO., CLAYTON WALKER (UK), IHI (Japan), KUETTNER (Germany), BRICMONT (USA).
TEA DIVISION comprises of tea gardens measuring a total grant area of 5874 hectares and has various tea estates in Betjan, Tengpani, Jutlibari in Assam and Gairkhata in Doars and Taipoo in Bagdogra.
WALDIES It is one of thelargest manufacturers of Lead Oxides and Stabilisers for PVC Industry. Its factory is located on the bank of River Ganges around 14 Kms from Kolkata. It is the most respected name in the industry and is well known for its high quality products which are unmatched in India.
YARN DIVISION produce varieties Yarn for Domestic and Exports market. They have two spinning mills known asGIS Cotton Millat Champadany, near Kolkata, West Bengal, India and another one asNorth India Spinning Millat Ahmedgarh, near Ludhiana, Punjab, India.
MARKETING DIVISION The company is active in marketing various products connected particularly with Building Industry mainly in Southern and Western regions of India. They market various products like Supercemâpaint related brands, CICO â water proofing compound, Tapecrite, and various other numerous brands. They market 3M products in Tamilnadu.
PROPERTY DIVISION owns and rents Gillanders house at Netaji Road in Calcutta and POWER DIVISON has a 6.5 MW co-generation power plant at Akbarpur in Dist Sangrur Punjab.
FINANCIALS:
CMP AROUND 113, MARKET CAP AROUND 242 CRORES, TOTAL DEBT IS AROUND 211 CRORES
|
YEAR |
04 |
05 |
06 |
07 |
08 |
09 |
10 |
Q1FY11 |
|
SALES |
51 |
240 |
258 |
269 |
408 |
487 |
613 |
158 |
|
NP |
-1.64 |
2.81 |
4.86 |
5.93 |
14.6 |
16.2 |
25.3 |
11.3 |
Before jumping the gun about FY 11, one needs to consider that they report losses during March quarter due to lacklustre performance of tea division. But overall the trend in sales and profits seems to indicate good growth performance. For Q1 FY 11, the company reported sales of 158 crores against 110 cr in Q1 FY 10 and net profits of around 11.3 cr against 4.2 crores.
For the first quarter, the textile division has shown a smart uptick in sales and profits and this division looks like a good growth driver going forward besides the tea division.
DIVIDEND declared for FY 10 is Rs 5. (for stock before it went ex bonus)
PROMOTER HOLDING IS AROUND 68.62%, NO PLEDGING.
STOCK IS AVAILABLE CURRENTLY CUM BONUS WITH ONE SHARE FOR EVERY TWO SHARES HELD.
TECHNICALS: (before stock went ex bonus)
Here there are two different interesting patterns which I have posted on theequitydesk.
First is an inverted head and shoulders pattern on long term charts where breakout levels are around 180-190, and a break above these levels should target much higher levels.
LINK--http://www.theequitydesk.com/forum/forum_posts.asp?TID=2860
Secondly on the daily charts it has formed a bullish cup and handle pattern, again breakout levels of this are around 180-185. Link http://www.theequitydesk.com/forum/forum_posts.asp?TID=339
Gillanders seems to be a combination of deep value cum growth play.
DISCL: I OWN THE STOCK.