View in (Million) Prior Period
(in Cr.) Sep-15 Jun-15 Mar-15 Dec-14 Sep-14 FY 14-15
Revenue 1,398.34 1,368.75 1,529.53 1,337.82 1,337.77 5,593.88
Interest -66.85 -62.06 -57.72 -66.77 -64.31 -253.64
PBDT -15.97 21.28 91.73 -25.58 3.68 126.09
PBT -50.83 -12.29 59.25 -60.33 -29.32 -10.75
Tax 17.57 4.25 2.64 19.66 9.56 25.45
Net Profit -33.26 -8.04 61.89 -40.67 -19.76 14.70
Equity 503.36 503.36 503.36 503.36 503.36 503.36
EPS -0.66 -0.16 1.23 -0.81 -0.39 0.29
CEPS 0.03 0.51 1.87 -0.12 0.26 3.01
OPM % 3.64 6.09 9.77 3.08 5.08 6.79
NPM % -2.38 -0.59 4.05 -3.04 -1.48 0.26
7 MILLION TONNES OF CEMENT CAPACITY OPERATING IN THE CEMENT MARKET OF MP,
BIHAR , WEST BENGAL
NEW PLANT OF 4.8 MTPA TO COME UP IN AP
H & R JOHNSON (INDIA)
ONE OF THE PIONEER IN TILES MARKET IN INDIA
LARGEST CAPACITY IN INDIA OF 54 MILLION SQ METRE
STRONG BRAND EQUITY
JOHNSON TILES ,JOHNSON ENDURA TILES , JOHNSON MARBONITE ,JOHNSON PORSELENO ARE GOOD KNOWN BRANDS IN TILES MARKET.IN CERAMIC AND VITRIFIED TILES JOHNSON IS THE BRAND LEADER WITH SALES OF 1105 CRORES IN H1 15-16
OTHER INVESTMENTS:- GENERAL INSURANCE 74 % IN RAHEJA QBE GENERAL INS
ALL THE CEMENT AND TILES AND SANITARY COMPANIES LIKE JK LAKSHMI, JK CEMENT , ULTRATECH, SOMANY TILES , CERA SANITARY, KAJARIA ARE AT ALL TIME HIGHS, BUT PRISM IS LANGUISING SINCE LAST SO MANY YEARS .
MANAGEMENT IS ALSO OF GOOD REPUTATION RAHEJA GROUP, HOLDING 74.9%
NEGATIVES ARE HIGH DEBT OF 2236 CRORE (CONSODILATED)
PLEASE GIVE YOUR COMMENTS WHY IS THIS STOCK NOT PERFORMING
DISC: HOLDING SHARES SINCE LONG TIME (2500 QTY)
None of the cement co’s are at all time highs, in face ACC and Ambuja are near 52wk lows. Ultratech is also 2k ish with the high at 2600ish.
So, Prism is not underperforming. Cement sector is underperforming due to over capacity. The situation is different in south due to the reason that there is no single big manufacturer and you can read this article to know better.
Now, with such overcapacity and capacity utilization, they are putting in more capacity. Is it not overkill now given the slowdown in the sector.
Also, if you look at the debt, it carried 1.6k Cr of debt on a book of 2.6K. the amount of interest payment is killing the co as well. ACC, Ambuja are zero debt co’s and also have the scale of operation.
Another aspect is Real Estate, Only commercial property is picking steam while domestic housing is still lagging which is also taking toll on raw materials.
Prism though might be good but I think you can switch a little to other south players like NCL, India, KCP or Ramco to diversify the risk.
Also, the Topline has been near stagnant and it might not show much improvement if what is stated in the article i quoted happens, with competition, all will increase their capacity utilization thereby pulling the prices down putting more pressure on Bottomline as well.
I am not sure of the breakup of the business between Cement and Ceramics. Can you guide to any relevant post of the Company or any research report for the same.
While going through details of this company, I came across interesting point. Chairman of the company is Rajesh G. Kapadia and auditor of the company is G M Kapadia & Co. It may be coincidence but if not…. Does any of the borders know this audit firm, which claim to be from Mumbai? If so, please share your knowledge about this audit company.
You can have the detailed report from the company given to investors presentation.
Business break up of Prism cement is as
Total sales FY 15 is 6117 crs
CEMENTt -41%, HR JOHNSON-39%, RMC-20%
Operating Profit is FY 15 - 335 cr
H1 16-17 Sales is 2972 crs
CEMENT-1049 crs, HR JOHNSON TILES-1105 CRS , RMC -621 crs
How come a tiles company with sales of about 2400 crs in 14-15 and sales of 1105 crs in H1 15-16
show such meagre profit when its competetors like Kajaria , somany are all showing handsome profits.
Can any one explain why is the company having one -to -one meeting every other day with many reputed FIIS and Domestic Instituitions.
Is something cooking in the minds of the promoter that we are not able to understand.
They had one to one meeting with Franklin Templeton, Anand rathi,Emkay , Saif Partners, Birla Sunlife , Reliance Mutual fund, Temasek , East Bridge throught out December 15.
Dear VP sir please through some light in this matter.
VP Sir please look at the financials and give any suggestion. Can you tell why this company is languishing inspite all tiles company are at all time highs . HR Johnson is one of the leader in floor tiles.
I am stuck in this company since last 4 years
The interest coverage ratio is alarmingly low. A quick scan in screener shows the int coverage to be <1. This is a very dangerous position to be as the funds needed for growth now will have to be generated internally as no one will lend to it. Its OPM is ~7% so that would be a challenge. Either that or they will have to issue shares to raise funds which is also hazardous. I dont know what other income is since i havent gone through the company AR, but that also seems high to me ( I think i read someowhere about its stake in the raheja australia venture and from a cursory glance it is mentioned that it is selling it )
However i think there is an opportunity in all this mess. Signficant value can be unlocked if they spinoff the three divisions. There would be fireworks then.
From a technical perspective the stock seems to be heading for a showdown with the upper trendline and i would watch out for a price break above it before taking a call.