Kesar Terminals and Infrastructure Ltd

Looks like panic selling to me. The last quarter was rather disappointing. KMLL income will not be declared till next year, as ktil does not post consolidated numbers quarterly. Coupled with general bearish sentiment in stock market, there doesn’t seem to be great upside here. Hence the selling perhaps?

The thing with these low liquidity stocks is that any seller who wants to offload something like 25,000 - 50,000 shares at ‘any price’ will completely hammer the price. To add to that Q4 was weak.

But I have run my numbers and this stock WILL BE AT 800-900 by next June/July if KMLL lives upto management’s guidance of 25cr PAT/year in phase 1.

I guess everyone is waiting for Q1 and Q2 to see the bump up in numbers before buying in.

Now, Kesar Terminals can also look at the new projects in other ports… The capex required for expanding to new ports with their liquid terminals is less… Also, the period required for commissioning these facilities is far less… Let’s see what the management does…

Note: I hold from very low levels…

Hey buddy…I have met the management. They will first finish Phase 2 of KMLL in FY16 and then focus on Kakinada later once their cash flows stabilizes.

They hope to grow very strongly over the next 5 years. Good times ahead I believe.

@neil991

Good to know that you have met the mgmt. Can you pls share more of the insigths tht you might have had thru this meeting? Thanks.

  1. Has the railway line inside the pawarkheda facility become operational?
  2. How much is the royalty to be paid by the company to the Mandi board? And how is this structured? Upfront or at the end of the year?

Hey everyone,

Looks like the Kesar promoter group has bought 1.9% stake in the company today under Seal investments pvt ltd which is owned by the Kilachand family. This is potentially great news.

Maybe thats the reason it shot up 6% today. Lets hope for better times in the weeks/months/years ahead!

Cheers all

Neil Bahal

but the volumes on both the exchanges were paltry 10000 shares combined. What is the source of your information

These smallcaps have very stupid disclosure sense. They have updated only on NSE and not on BSE lol.

Please see the copy pasted screen shot from NSE website.

Cheers

Thanks Niel for the update.

thanks neil,
But this is inter-se transfer between promoter entity. Look in shareholding pattern both seel and duracell (seller) are promoter entities. So nothing significant here.

Oh my! I cannot find the details of Duracell. If you are correct, then its not to great news. How did you find out the shareholding of Duracell investments?

The snapshot you sent me contained view all. You open that and view details. Then look for promoters holding in Bse and its just interse transfer. But how can it be bad?

No its not bad at all. I meant its not great news like I thought it was :smile:

Damn, I am happy you corrected the error! Thx man!

Guys, some one come up with what is the situation with occupany in kmll.

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Entire KTIL story is about KMLL. So we need to understand KMLL from financial perspective as how much KMLL will add to KTIL. My few questions are

1.KMLL is a joint venture of KTIL & Kesar Enterprise(group company). so what is % holding of both KTIL & kesar enterprise in KMLL

2.KMLL has been set up under PPP model with mandi. So what are the conditions.Does KMLL have to pay a fixed income to mandi or is it on revenue sharing model ?

Unless these are not understood properly it is difficult to value this business.All other things like strategic location ,demand supply etc. are important but incomplete without this information.

Would appreciate ur views on same…

KTIL holds 99% and KE holds just 1%. This has been confirmed by management.

Thanks Neil for update. As for their agreement with mandi board , what I have come to understand is that they have paid 14 cr. upfront for 33 yrs lease.( Kindly correct if am wrong).I am attaching presentation by MP Govt on project which clearly summarizes the entire project. Total project cost is around 138 cr. KMLL has to only build & operate common platform.They can further hire individual players to build & operate individual facilities in lieu of upfront payment (Refer slide no.KMLL.ppt (2.5 MB) 12).If they do it I think it will be good in a sense that they don’t have to incur the entire cost ( good for managing debt).

Now there are few questions

  1. Total debt taken by KTIL for project.
  2. What kind of revenues we can expect from project??Any management guidance on that.In absence of that If we ppl familiar with project can give a conservative estimate. If we get it we can try to get impact of same on topline & bottomline of KTIL.

Ur views on same will be appreciated…

Hey buddy,

Yes according to the management, KMLL phase 1 will generate 25cr in PAT from FY17 once in full gear. Phase 2 will add another 15-18cr to PAT. (This info was months ago).

After that, its been impossible to get through to them.

I am going to rip them apart in the AGM and ask some real question which they will have to answer. lol.

Jokes apart, the company is well placed. They need to make KMLL work and focus on the other projects such as Kakinada, Pipav etc.

The stupid management needs to get their behinds on CNBC and layout their plans openly for everyone to see and understand. Their valuations can and should jump from a lousy 14x to 40x or 50x like the case for Gati etc.

Lets hope I can talk some sense into them at the AGM.

Cheers
Neil Bahal

Neil
waiting for some material facts you can dig out of AGM. Best of luck