Isn’t Subsidiary making too much to be real from negligible fixed assets reserved for it in a consolidated statement
If you see the cash flow statement of TAALTECH, it has purchased PPE and intangibles of Rs.1.4 cr in 2016-17 and Rs.2.13 cr in 2017-18. The company is software consulting and technical manpower supplier, it requires only computers and software. It has conservative accounting of providing depreciation on WDV method considering life of three years for both computers and software. That means it provides depreciation @above 63% in the first year itself. The results could be genuine as it is paying tax and it paid dividend also last year to parent company, which helped it pay interim dividend of Rs.10 per share.
Disclosure: invested, forms about a third of my portfolio.
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Could you draw parralel from any other listed company to justify sustainable subsidiary business as only numbers cant help it to be simply digest
I do not know of any company that is working in similar areas and of similar size. I believe this company is in a niche space and has certain specialisation in airspace engineering designing vertical. Many small cap companies maintain low profile and do not disclose much information. The company has uploaded the financials of subsidiaries on the website. If much information is not available and if the company deserves close look, the price trend, changes in shareholding pattern are good indicators. Presence of eminent investors and increase in their holding, all matters. Above all I go by cash flow statement and the company generated Rs 23.71 cr during the last two years and paid income tax of Rs.6.72 cr and repaid long term loan of Rs.12 cr during the last two years. During 2018-19 interim dividend was paid @ Rs.10 per share. These are the reasons for my conviction in the company. Till now there was no scope for closely monitoring the consolidated quarterly financials. This would change from now on, and quarterly consolidated financials would be available and would help in developing conviction or otherwise.
Why arent they declaring the result for this year?
Board Meeting for considering the audited results is to be held on 24th June
The results are announced. EPS increased from Rs.50.10 to Rs.66.60.
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good results. atleast now we will be getting consolidated results every quarter. so not in dark about true rstate of affairs
Results are just ok…there is no growth in revenues and profit…both are just stable…
I understand that they will be buying the entire stake of ttipl but the mechanism i am not able to understand. Can you please explain @HIMSHAH ji.
ttipl 15 % is held by some other co promoter so they are taking fukk control by buyback of that stake
The company secretary resigned in quick succession and also cfo. Not much information available on internet about this company. One thing is it pays dividend which seems to be out of profits as there is no much borrowings. But looking at it’s size and limited info not a time to risk money on this. Somehow this reminds me of Aerotyne International
Disclaimer: TAAL is 9% of my pf. Own it for more than a year. No purchases in last 2 months.
TAAL Tech (TTIPL) is the main business operating entity with in TAAL. TAAL effectively is a holding company owning 85% shares in TTIPL. The rest 15% was held by Mr. Prakash Saralaya who has been with company since its inception. Mr. Saralaya was the co-promoter.
TTIPL business over last 6-7 years:
Sales PAT
FY13 19.96 cr n.a
FY14 40.31 cr n.a
Fy15 50.28 cr 0.31 cr
FY16 58.85 cr 0.91 cr
FY17 83.76 cr 8.46 cr
FY18 101.5 cr 17.12 cr
FY 19 148.2 cr 22.68 cr
H1 20 67.3 cr 14.2 cr
Mr. Saralaya has decided to leave the company and pursue something on its own. TTIPL OR TAAL has agreed to buy back the entire equity stake held by Mr Prakash Saralaya. The buy back will be completed progressively between February, 2020 to April, 2023 in 3 equal !ranches for respective considerations of Rs.6.25 crores, Rs.7.50 crores and the last tranche based on 9 times average Profit After Tax for the previous 4 years (Rs. 12.3 cr; valuation of Rs. 110 cr). Total purchase of Rs. 26.05 cr for 15% stake i.e. valuation of Rs. 173 cr ! TAAL’s market cap is ~Rs. 68 cr which would now 100% in TTIPL.
Company has enough cash eq. As on Sept 2019 the cash / eq position is ~Rs. 34.4 cr - investment of Rs. 23.6 cr; cash of Rs. 7.7 cr ; bank balance of Rs. 2.9 cr - total: Rs. 34.4 cr
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Just found this Show Cause notice that was issued to Salil Taneja and C S Kameswaran by SEBI in Jan 2016. Its a long read (32 pages) and the outcome is they were not found guilty of misappropriation of funds but nonetheless its an interesting read to understand the history of something that one wants to consider investing in.
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taal.pdf (405.5 KB)
intersting to read on this page , their usa company wich is main bread and butter earner is valued at 1250 per shares in buyback ,ie 125 cr
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@HIMSHAH @nagesh_reddy @Vikrantydv Since the AGM is on 30th Sept 20, Are you planning to attend it online? Also do you plan to ask any queries to mgmt during the AGM forum. Please reply incase you plan to attend, since i also intend to attend and understand their future plans for Taal Tech, and other business.
A few updates from AGM as conveyed by Salil Taneja (and as noted by me), These are not complete updates, and others can add/update to this,
- The company Aircraft has been grounded, not yet received insurance claim. Once they get claim processed, and any obligations to Cessna resolved, the mgmt will then take the next steps weather to continue in the aircraft leasing business or exit.
- They skipped the dividend due to losses, they did not think it was prudent to transfer profits from TAAL tech to TAAL enterprises.
- They said they will arrange a separate call to talk about the Taal Tech related matters, since they did not want TAAL enterprises AGM to discuss that matter. Hope this happens soon.
@ayushmit - Not sure if it was you, but saw an Ayush Mittal in the TAAL Enterprises AGM today. If it was you, please add your updates/thoughts/insights/perspectives when you can. Thank you in advance.
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1)They said their business is in similar to L&T tech.
2) some one asked why they don’t merge both . He said they will look at later stage.
yes, i think the taal ent shareholders are getting a very favourable valuation in the buyback. taal tech made 24 crs and a 125 crs is like a 5x. its even lower if one adjusts for cash and receivables.
also the last instalment (feb 2023) would be 9x earnings for the average of last 4 years - which (i think) is a reasonable valuation for an asset light business like this. we still dont know how the next 2 years will be. but assuming the same as last years earnings will get a valuation north of 200crs (for that installment).
in the interim there are uncertainties around covid. this is not full proof but i have been monitoring the number of emps (theory being they would fire emps when things turn - and those people will update their linkedin). but so far there arent any signs of layoffs.
on the contrary they seem to be hiring a few people.
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