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


(ramdhawad) #170

Seems the large SEZ project they mentioned in AR and claimed to have reached a very advance stage of negotiations, have been awarded to them. Above pic is from their site under services / civil construction section.


(ramdhawad) #171

Had a call with CS, Mr. Raghu. Clarified some of the doubts:

  • In affordable segment, gov provides all the raw material like cement, bricks, steel etc and is paid for directly by them. This makes it an asset lite and less capital intensive business.

  • Labor are sourced and employed by Uniply.

  • Payment by gov agency is in phase manner.

  • Curentky working on getting some projects in Bengaluru and Maharashtra

  • Projects in Talangana got delayed due to election but confident of achieving the 1200 cr topline targtet. It may get pushed to next financial year again due to election outcome.

To me this looks a good asset lite business model. They don’t have to commit or invest any large capex to get the business. It’s like the “heads I win, tales I don’t lose much” scenario. My only doubt being, what is stopping the real estate players to get in to this space ?

Dics - invested and is the top holding in my PF with 15% allocation.


#172

Substantial portion of shareholding stands pledged now. 1.36% (total 11.76%) held by Keshav and all shares held by Madras electronics. This is in addition to previous pledges.

https://www.bseindia.com/corporates/ann.html?scrip=532646&dur=A

Combine this with promoter buying earlier this quarter, this would indicate that promoter has confidence in the business / promoter feels that company will reward over longer period but this also means that currently company is facing working capital pressure with no other hard collateral available to provide to bankers. Think, it is prudent to stay alert in light of recent pledging.


#173

Can anyone in contact with the company confirm what has been the end use of promoter pledging? Is debt capital ploughed back in the same company? / Has it been used for buyback of Uniply Ind / Uniply Decor from open market? Is it possible that money has been diverted to some other company? Also, It will be great if we can ask them to disclose more on pledging (generally no promoter does) and start investor con calls.