Bilcare

Q&A: Questions & Answers
1

Any idea on why Bilcare is tanking? Is it worth looking at? As per the latest balance sheet (Sep 12) consolidated BV is 1445.92 cores or Rs. 614/share. With today's lower circuit the share price is down to 90.

Column1 Column2 Column3 Column4 Column5 Column6
Value as on Sep 12 Liquidation Value
in Crores Per Share Multiplier
a Fixed Assets 1,388.79 589.84 0.4 235.94
b Inventories 491.78 208.87 0.5 104.43
c Trade Receivables 1,004.07 426.44 1 426.44
d Cash & Equivalents 264.57 112.37 1 112.37
e=(a+b+c+d) Total tangible assets 3,149.21 1,337.52 879.18
f S.T Debt + L.T. Debt (1,752.03) (744.11) 1 (744.11)
g=e-f 593.40 135.07

All figures are based on consolidated balance sheet on companies website for Sep 12 Quarter.

In above chart, I have used only tangible assets and excluded assets such as intangibles, short-term loans and non-current investments. I have also used the full value of debt. Column 4 shows the BV / share to 593 and Column 6 shows liquidation value of 135 per share (arrived by multiplying column 4 by 5)

This in my opinion provides reasonable margin of safety from current price of 90. Even today there was a lower circuit and given the market sentiment we might see another one tomorrow.

Keep in mind this is a going concern and my assumptions are based on liquidation value.However, one critical factor in my assumptions is I have taken the full value of trade receivables. If we were to reduce it by 10 basis point to .9 we get the BV of these shares to 92.

Promoters have pledged 715,000 (or 3.04% of total share capital of the company) at end of Dec 12 quarter (as per the Quarterly financials on the companies website).

I have no position in these shares, but wanted to invite views of fellow boarders to see if there is any value in these shares.

-AS

2

Cash flow is problem,further despite showing cash on balance sheet,co is accepting fixed deposits for more then 12 percent & even for that co is paying 1.9 percent commision. Yesterday some news were there abt company land sold by promotors & accounts irrergularity.

3

there is something seriously wrong.

The company has been consistently making ( read - reporting) profits all the time. Also last year they sold off one division to some other company - i forgot the amount recd. Also last acquisition they did was in fy 11, since then no major expansion - capex.

Then WHY WHY their debt is not reducing ???
the finance costs are not reducing ???
where is all the money earned as profits is going ???

this clearly shows there is some serious cash flow problem, the profits doesnt seem to be real / flowing to the company???

it is for the invidual investor to decide what to do with his holding but i personally feel the mgmt is not honest and debt is something which can make a company bankrupt. I had sold out at a significant loss after Q3 results, however i dont have any evidence / proof to above, its just things were not making sense.

4

From 2005 to 2014 the company’s sales have climbed 162 crore to 3062 crore with growth of approximately 40% YOY.
It’s surprising that in-spite of that it kept tanking.
I took an interest in the company after finding RK holding a stake in it.

Disc: Not invested

5

I am surprised somebody is still tracking this. Nothing proven but the management almost accepted the fault of aggressive revenue recognition. RJ had accepted it as one of the disappointing investments. Smooth talking is their moat. STAY AWAY is the sugesstion

6

RJ entered Bilcare in 2003. If you see till 2007 it gave him returns more than Titan which today is his biggest wealth creator. However Bilcare didn’t seem to survive the 2008 meltdown.And going by recent sales I can’t relate the story why it couldn’t survive 2008 meltdown ?

Disc: Not invested

1 Like
7

Dear All,
Here is my Take on this stock:

Their deal with Lindsay Goldberg LLC might have fetched around 2400 Crore including debt. Their debt on swiss units were 1400 crore.

So, in that case they should show 1000 Crore on the balance sheet.

But in the balance sheet, their standalone borrowings has gone from 709 crore to 707 crore.

Reserves has increased from -93 to +85. So, this is an increase of 178 Crore. Where is the rest of the money??

Regards,
Chetan Biluve