Uniply - Bet on new mgmt. bringing scale, brand & operating efficiency + GST

(MHS) #129

Please check the above nos. from Screener.in, the working capital and ROCE nos.

(Chinmay Kelkar) #130

Thanks @rajpanda for starting the thread. One very peculiar thing which i noticed in the annual report was that almost all the money raised through equity and debt went into Advances for Investments (Note 9 - Other Assets).

Can someone help me understand what does that mean and what is this capital being used for ?

The only relevant thing i could come across was this -

(ramdhawad) #131

Those are 2017-18 nos. FY 19 ROCE projected at 21%. Not entire business is WC -ve but just the affordable housing fitout space. The traditional plywood business requires working capital.
Consider this, at the start of FY 18 in April of 2017, they had zero orders in affordable housing space, the closed the year with order book of 600 odd cr. Currently at high level of closing a deal of two large IT parks in HYD and expects to close year with total revenue of 1200 cr. With 10% margin company will have 120 cr profits and is available at 800 cr market cap today. I have not yet mentioned about the management pedigree and have very high regards for the new promoter. If not already seen, suggest to see three 10 mins videos or promoter on HYBIZ TV on YouTube.

(MHS) #132

Ok so those the projected nos.

Do they have any investor presentation showing business segments their nos. and margins??How much from government works , private works and how much from plywood ???

If we see and check the nos. of Uniply decor the receivables are very less compare to Uniply industries receivables and also check the payable nos.?? All are in Uniply industries Balance sheet only.

Also do consider the risk of payments/receivables from State Governments. Also the next year State Elections In Telangana, who knows once Government changes the whole business goes for a toss we know how the subcontracting works are awarded.

(ramdhawad) #133

At standalone level company’s D/E is under 0.3 and at consolidated level it’s around 0.77 that’s a huge improvement from 2017 D/e of 1.5.
Sure debt has increased over 2017 but majority of that is in current form towards working capital and will be paid in 12 months time. The long term debt is borrowed for buying properties / offices and a deail break up and explaination of loan is given from page 180 onwards of AR.
Most of the debt shown is capital raised by issuing non convertible debentures which matures in 2020.
On sales from Diff division, this info is available on page 183 of AR

(ramdhawad) #134

Promoter and group company has been buying shares from open market. They purchased additional 3 lacs shares through ‘ Madras Electronic pvt Ltd ‘ which is a holding company promoted by Keshav K and Srinivasan Sethuraman who is the CEO of Uniply.

(Harsh04) #135

2.27 cr (FV of Rs.2 ) of warrants have been converted to equity @ Rs.82 per share.

does such a conversion work in our interest ?
i mean, while conversion at a price significantly higher than the cmp gives a strong boost and +ve signal, the fresh equity dilutes our stake also? isnt it ?