ANIL LTD.
Bse code 532910
Market cap 240 crores.
Cmp 245, FV Rs 10 per share.
Book Value 170.
COMPANY DETAILS
Anil Ltd is a leading player in the Indian wet corn milling industry having good manufacturing capacity , adequate infrastructure and excellent R&D facilities.
It is among the top 3 leading players in the domestic starch market. It has overall 20% market share in the starch market and 40-50% market in the value added modified starch market.
Company was established in 1939 and manufactures a variety of products like native starch, chemical starch, modified starch, dextrins, dextrose monohydrate, liquid glucose, cory syrup, sorbitol etc. Its manufacturing facility is located in Ahmedabad at Bapunagar, in an area of around 150000 sq metres. It is coming up with new facilities which will enhance its capacities to around 1000 ton per day in a phased manner. Capacity utilisation was around 60% in 2008 which has gradually increased to around 75% in 2011. The biggest plus for Anil Ltd has been its focus on R&D which has been helping the company in increasing its margins due to value added products.
It has shown strong top line growth at a CAGR of 31% and bottomline growth at 77% CAGR during 2008-2011.
Its products find application in food and pharma industry, paper industry, and textile industry.
STARCH INDUSTRY IN INDIA
Indian starch industry is a 2000 crores industry and is at the cusp of explosive growth as more and more modified starch products find new applications in various industries. Indian starch industry has around 40 different products whereas the international starch industry has around 800 different products which goes to show that Indian starch industry has a long way to go.
USES OF DIFFERENT STARCHES
MALTODEXTRIN â food, baby foods, medical preparations
LIQUID GLUCOSE-- confectionary , bakery, jam, canning and leather inds
LIQUID DEXTROSEâfermentation inds
DEXTROSE MONOHYDRATEâfood and pharma inds
HIGH MALTOSE SYRUPâbrewing industry as malt replacement and candy making.
SORBITOL SYRUPâtoothpaste, pharmaceutical , cosmetic and tobacco industries.
FINANCIALS
EQUITY IS 9.76 CRORES WITH AROUND 98 LAC SHARES OUTSTANDING WITH FACE VALUE OF RS 10. PROMOTER HOLDING IS CLOSE TO 69% WITH NO PLEDGING.
DEBT AS ON ON MARCH 11 AS AROUND 265 CRORES.
COMPANY HAS GOT BOARD APPROVAL TO RAISE 100 CRORES THROUGH SECURED REDEEMABLE NCD OF AROUND 100 CRORES. INCREASING DEBT MIGHT BE CONSIDERED AS A MATTER OF CONCERN.
EPS FOR FY 11 WAS AROUND 41 WHICH IS SLATED TO BE AROUND 45-46 PER SHARE.
LAST FEW YEARS RESULTS
YEAR |
07 |
08 |
09 |
10 |
11 |
9m FY 12 |
SALES |
202 |
225 |
276 |
374 |
504 |
441 |
OP PROFIT |
19 |
26 |
30 |
52 |
88 |
84 |
INTEREST |
7 |
10 |
10 |
16 |
28 |
31 |
NP |
5.5 |
7.2 |
10.5 |
24 |
40 |
35 |
ROE |
13 |
15 |
20 |
32 |
35 |
|
EPS |
7.4 |
9.8 |
14.22 |
24.7 |
41 |
|
DEBT (CR) |
68 |
78 |
102 |
204 |
264 |
RECENT DEVELOPMENTS
Anil group of companies received approval from food ministry to set up Mega Food Park project in Gujarat. Company will form an SPV in which Anil will have 40% stake. The group will bring in 87 acres land worth 25 crores for its 40% stake.Once the project is completed there can be rerating of the stock.
Companyâs manufacturing facility is located at Bapunagar in Ahmedabad in an area of around 1. 5 lac sq metres and is a lucrative parcel of land and can be valued at close to 800-900 crores. If the company can shift its manufacturing at some other location then it can have huge value unlocking.