TAAL Enterprise - cheap valueations

bkasal · October 6, 2020, 12:02pm

Recently came across the company.

Does anyone who have invested or attending AGMs could help with inputs for the following queries -

As per annual report '20 private jet is grounded since Sep’19 because of accident and caused major damage. However as per Aviation safety site ‘Accident was Minor’. Might be true too as per seen news pictures.
https://aviation-safety.net/wikibase/229031
Is Promoters/Management clarified why need more than a year to start the service or it’s permanently closing down operations?
Since last five years and so company reporting - ‘…commercial activities relating to the demerged charter business for and on account of and in trust for TAAL Enterprises Limited until the time TAAL Enterprises Limited obtains the requisite statutory licenses for
carrying on the demerged charter business. However, the accounting entries pertaining to the demerged charter business are accounted in the books of account of TAAL Enterprises Limited…’.
Why so much delay to obtain statutory licenses? Is issue lies somewhere else?
There too many resignations of Company Secretary and CFOs? Is there any Governance or Accounting lafada?

Thank you in advance.

HIMSHAH · February 12, 2021, 4:25am

dec results

utsav08 · February 12, 2021, 10:36am

Somehow they have not been able to participate in the tailwind that has been going on the industry. Is their result in line with the l&t tech as they mentioned that both are in the same sector?

Sagar_Naik · June 19, 2021, 6:40am

isnt buying back at such a high valuation detrimental to the existing shareholders of the company?

ashwind · June 19, 2021, 8:14am

Why do you say the buyback valuation is high? What is the valuation basis you are referring to? Asking since i am confused why you think valuation is high.

ashwind · October 2, 2021, 4:27pm

TAAL Ent AGM - Did Anyone attend this? i unfortunately missed this due to an conflict, can someone share the updates or any links to video recording, if any? Thanks in Advance

utsav08 · November 11, 2021, 1:48pm

utsav08 · November 11, 2021, 1:53pm

Interesting…the company has bought back 50000 shares from a shareholder at a price of around 1500.

Plus I always keep an eye out for the dividend TAAL TECH pays out. This was one of the main reasons that led me to believe that the cash flows of the company was genuine.

Disclosure: Holding from much lower levels.

ashwind · November 11, 2021, 5:18pm

But the shares brought are of the subsidiary. The shareholder was the earlier CEO holding 15% stake, when he moved out, the company is buying this stake out in phases (3 i believe) by 2023 March. In another 17 months, the subsidiary should be a 100% owned and possible reverse merger might be on cards if true valuation has to reflect in stock price.

Dinesh_476 · March 18, 2022, 6:13pm

below is the consolidated Financial data.

Right now, the parent (TAALENT) business (charter services) is zero. Can anyone help in estimating the Market value of the Assets (like the 250 Acreas land).
Business prospects are only from the subsidiary (TTIPL) . and there is no concrete data avaible about its Operations, Business Model, Existing services and clients, Future growth avenues.

It is difficult to make investment rationale with the available data - Please help in case anyone has data of TTIPL ( TAAL Tech).

HIMSHAH · March 19, 2022, 6:40am

Taal don’t hold airstrip. It’s Taneja aero wich holds approx 650 acres land with airstrip.

Dinesh_476 · March 19, 2022, 3:10pm

Thank you. So, only TTIPL’s growth (subsidiary) can generate some value to the business/stock .

ashwind · March 19, 2022, 3:29pm

Yes, TAAL held 85% in subsidiary 2+ yrs back, and has been acquiring 5% each/year at a negotiated price from the earlier CEO. Plan it to make it 100% subsidiary by Mar 2023, as per my knowledge.

After Mar 2023, makes sense for them to reverse merge for better share holder value realization.

Dinesh_476 · March 20, 2022, 6:10pm

Do we have any data available about subsidiaries Operations, Business Model, Existing services and clients, Future growth avenues etc.

Thank you.

ashwind · July 13, 2022, 5:55am

Is anyone else tracking this company? And also planning to attend the upcoming AGM in Aug/Sept (date not yet announced).

I want to collaborate on the questions to be asked to management. Please respond.

Some questions i have:

Numbers of the company (including subsidiaries) for FY22, FY21 and FY20 for,

Consolidated Staff strength
Consolidated Staff Turnover (Quits & Hires separately)
Consolidated Planned hiring for the upcoming quarters
Consolidated Revenue per employee for last 3 years

On a consolidated company level, what are vacant seats available, before company needs another office rampup. Location-wise, What are the India locations of the company from where employees are based out of? For each location, what are the vacant seats available, before another location rampup is needed?
What is the current % of WFH versus WFO for the employees?
What is the % of onsite / offshore billing? How much of this is from North America, Europe and ROW?
Vision related, Based on the Domain Knowledge gained by the company in the BIS, other spaces it operates on, Does the Company have any plans of developing any Products or Product based services?
Are we seeing the revenue growth slowing? or any other challenges for growth of the company?
What could be growth and margin range for the business going forward, and if there is any effort to better the growth/margin profile?

ashwind · August 30, 2022, 3:15pm

Taal Tech the subsidiary is now 100% owned by Taal Enterprises. The last trance of buyback has been completed.

ashwind · September 6, 2022, 1:43am

TAAL Enterprises Annual Report was published yday : AR FY2021-22

AGM is on 28th Sept, 11:30am.

Some points on buyback cost,

For 1st and 2nd Buyback tranche, Rs.6.23Cr and Rs.9.19Cr were spent (including buyback tax). This translates to Rs.1,247 and Rs.1,839 per share of Taal Tech, for 50K shares, in 1st and 2nd tranches respectively. Page 59 of AR.

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Rs.11.12 Cr seems to be the liability of 3rd buyback tranche, This translates to Rs.2,225 per share of Taal Tech, for 50K shares. Page 80 of AR.

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Also note below, AGM Speaker registration has to be done by Sept 20th, for asking questions to mgmt. Please check previous posts for questions collated by me, and for collaborating please add your inputs also.

Proceedings from the AGM:

Very few attendance, Only 2 speakers out of 4 asked questions. I was one of them.

Company is primarily into Engg design services, which can be further drilled down into 4 verticals -

product dev, engg - 55Cr revenue in FY22,
plant servies (EPC) 44Cr revenue in FY22,
civil and Infra - BIS - 24Cr revenue in FY22,
New segment for embedded and IOT engg - 6Cr revenue in FY22,

All Billing is on T&M basis, no fixed price projects, so future orderbook cannot be given. All revenue is export driven, with Europe 37%, USA is almost other 63%, Aus & NZ minor revunue. Top 5 clients account for 32%.

Employee cost 72Cr, Strength is (offshore-Onsite):
370-40 in Mar 22 (19% attrition number)
422-55 as of today

Co will look at conducting a conf call (i hope, but this line they say every year )
Merger/restructuring discussion to be taken at board level, but no guarantees on outcomes.
Dividends to continue, other avenues will be looked at if feasible (general stmt per me).
30L per employee revenue, has been like this for last few years.
Co has 52000 sq.ft. of office spaces across two offices in Bglr. Most employees are back to WFO.

Co seems a lot of opportunities, but did not elaborate.

Client names are not divulged as part of contracts.

Quest, LTTS, are two competitors whose name i was able to catch.

Increasing Digital presense to increase inbound sales, most current sales is outbound as of now.

The AGM was recorded, hope they can share it.

ashwind · October 18, 2022, 10:45am

Finally the merger of the subsidiary TAAL Tech Pvt Ltd with Taal Enterprises is announced today. There will not be any changes in shareholding or revenues/sales/profits. All subsidiary consolidated numbers will be standalone once this is approved by NCLT. Makes the corporate structure more simple, might be better reflected in stock valuations.

abhijitjph · March 22, 2023, 2:35am

custom duty is due 622 crore . what does it mean? 500 cr market cap company has 622cr due. how will we see it? Yet some big investors like mukul agarwal and dheeraj kumar lohia are invested in the company.

ashwind · March 22, 2023, 3:49am

Latest Annual report for FY22, has this below in Lakhs, not Cr. FY22 Annual Report , Not sure which one is correct. Approaching company for clarification is better.