Quote
BSE
Last Traded Date (#)
2010-09-17
Price High (Rs.)
27.90
Price Low (Rs.)
27.15
Price Close (Rs.)
27.55
Previous Close (Rs.)
27.05
Price Change Today
1.85
Volume (#)
38654.00
QUICK SNAPSHOTS
5 YEAR SNAPSHOTS
Variable
FY05
FY06
FY07
FY08
FY09
YoY
5yr CAGR
Sales Turnover (Rs. Cr.)
39.36
93.82
121.52
137.98
165.41
22.78
45.82
Profit After Tax (PAT) (Rs. Cr.)
0.90
0.85
3.36
3.67
3.82
4.09
43.53
Cash from Operating Activities (Rs. Cr.)
-2.64
0.92
-1.97
1.39
-3.10
144.84
4.10
Free Cash Flow
-5.39
-3.84
-5.54
-110.95
1902.71
174.06
Equity Dividend (Rs. Cr.)
0.00
0.00
1.98
0.00
0.00
Dividend Payout
0.00
0.00
58.93
0.00
0.00
Net Profit Margin
2.58
1.03
2.99
2.86
2.42
Operating Profit Margin
10.63
7.73
9.58
8.96
8.38
Asset Turnover
0.57
1.24
1.54
1.51
0.78
Return on Assets
1.48
1.29
4.60
4.32
1.89
Financial Leverage
2.91
3.04
3.10
2.67
3.26
Return on Equity
4.30
3.90
14.27
11.54
6.17
Capital Employed
55.96
61.09
68.03
79.88
202.13
Return on Capital Employed
3.72
5.75
12.55
11.67
5.55
Free Cash Flow to Sales
-6.56
-3.41
-4.31
-70.32
Debt to Equity
1.67
1.81
1.89
1.51
2.26
Interest Coverage
3.15
1.61
2.37
2.28
2.30
Interest Cost to Total Debt
1.88
5.54
8.11
8.51
3.48
Quick Ratio
2.52
1.80
1.51
1.75
1.99
Current Ratio
4.62
4.06
3.92
4.03
5.48
Debtor Days
46.44
22.83
18.72
25.02
14.69
Inventory Days
124.54
67.99
83.44
92.67
101.64
Variable
FY05
FY06
FY07
FY08
FY09
Equity Capital (Rs. Cr.)
11.60
17.40
17.40
20.12
40.00
Reserves & Surplus (Rs. Cr.)
9.32
4.37
6.14
11.69
21.92
Total Shareholders Funds (Rs. Cr.)
25.92
26.77
28.54
36.81
61.92
Secured Loans (Rs. Cr.)
31.47
35.26
39.44
42.80
129.82
Unsecured Loans (Rs. Cr.)
3.57
4.06
5.05
5.27
10.39
Total Debt (Rs.Cr.)
35.04
39.32
44.49
48.07
140.21
Total Liabilities (Rs. Cr.)
60.96
66.09
73.03
84.88
202.13
Gross Block (Rs. Cr.)
63.74
76.51
80.87
86.65
84.85
Accumulated Depreciation (Rs. Cr.)
29.66
33.00
36.57
40.41
42.71
Net Block (Rs. Cr.)
34.08
43.51
44.30
46.24
42.14
Capital Work in Progress (Rs. Cr.)
9.27
2.68
0.15
1.27
109.96
Investments (Rs. Cr.)
1.05
1.04
1.26
1.56
1.07
Inventories (Rs. Cr.)
9.69
14.05
22.99
27.49
39.16
Sundry Debtors (Rs. Cr.)
4.44
5.14
5.77
8.81
6.35
Cash and Bank Balance (Rs. Cr.)
1.02
0.46
0.26
1.61
4.04
Loans and Advances (Rs. Cr.)
6.12
5.53
8.45
10.61
11.92
Current Liabilities (Rs. Cr.)
4.60
6.20
9.57
12.03
11.21
Provisions (Rs. Cr.)
0.11
0.12
0.58
0.86
1.59
Net Current Assets (Rs. Cr.)
16.56
18.86
27.32
35.63
48.67
Miscellaneous Expenses (Rs. Cr.)
0.06
0.07
0.14
1.05
2.35
Total Assets (Rs. Cr.)
60.96
66.09
73.03
84.88
202.13
Contingent Liabilities (Rs. Cr.)
0.12
2.36
3.47
4.13
32.66
Thanks Sumeet for some interesting details on the stock. I looked at the stock, and on the flip side you may like to check the following:
1). The company is laden with Debt. D/E stands at 2.72, which is pretty highly leveraged already. How will it fund any of the ambitious expansion plans?
2). Return on Capital hovering between 8-9%. This looks to below the cost of capital unless it has access to some very low cost funds, doubtful.
In this scenario why will I look to invest in the company or why would a lender want to provide it debt financing.
I don’t know the reasons for the boom for this companies growth, you can educate us on that; but that yarn demand/supply cycle can change pretty soon, when it might be very difficult for this company, given such low returns on capital.
Please read the Annual Reports of past few years carefully to get better-informed, also of a few competitors, so you can cross-link industry/sector issues/challenges, the management etc.
1).
2).
they have issued 1 Crwarrants to promoter group and are planning for QIP.
Recently the company has been growing by leaps and bounds. Management has guided hefty growth projections. For ex FY16 np was 16.84. For FY17 they are sure to do 70cr and further 1-2 years after that they have guided 100cr net profit.
Hi Vij,
What will be drivers for the growth to profit, is it new market or additional capacity.
Disc - No holding
Has the promoter stake increased in Sumeet lately?
BSE filing shows its 43.28% now.
The Public shareholding is mostly in the hands of retail investors but the returns have been phenomenal. Almost a 140% in less than 6%. Wondering how institutional investors still haven’t entered here.
Have been invested in this company since Mar’15 from 14 level. Have seen good development since then and have a positive view on the company. The below links might help in studying the company more -
Disc - Since its a small company I have limited my exposure in this company to 1.5%, must increase to 2.5% if available again around 32-33 level.
Another good quarter…impressive numbers.
Is this turnaround due to power cost savings only ?
Do anyone have some info around value added products management mentioned in videos posted in earlier post ?
Tried searching on google but not much info available…
The moment company talked about expenditure and rights issue…share started downward journey … 60 CR worth rights to be issued for expenditure upto 100 CR. Remaining I guess company might take more debt.
Company planned to get coal based captive power plant, and since then share has tanked more than 20 %.
Can some one please comment if it’s that bad a decision ?
When world is moving towards renewable resources and wind and Solar energy prices has fallen to record low, why company opted for coal based plant ?
Promoter had mentioned to make profit of 100 crore in couple of years, can this expenditure help in that ?
what about promoter quality?
Besides, it was found that the company and its directors acted in concert with SIC Stocks and Services to manipulate the price and volume of the company scrip so as to enable the promoters, directors and related entities to offload their shares at higher prices. - Basically these statements an be another trap?
Dis - invested before and exited upon further study.
Another set of excellent numbers … EPS more than doubled YoY … but stock price moved in opposite direction ( reason unknown)
Is anybody tracking this company ?
special situation is emerging
Which special situation sir ??
Right issues post promoter change. Lucratively priced
Promoter is not participating in the rights to reduce their stake
Yes Mr. Kohli it seems like a good special situation. The track record of Eagle group in executing such projects have to be examined. Although one should not invest in a rights issue where management is not participating but this situation is different. The promoters have to bring their stake down to comply with SEBI norms. Also this company has been recently acquired by the new promoters,thier acquisition cost and value added by them over last 3 years must be analysed otherwise it would become a case of mopping their initial investment at the cost of new investors.
My hunch proved correct, The rights amount sought is very close to the funds put in by the eagle group. Its astute way of working in the marwari community. I trusted claude here to rescue me..
Thanks
Simple back of the envolepe calculkations, Management shall be selling around Right REs 15 Cr of shares, this will create lot of liquidity in short span, to avoid that they shall go to Bulk buyers (family offices & all that), at Rs 10 premium, management shall get Rs 150 Cr., as per NCLT ruling they infused Rs 205 Cr in the company. So virtually management is getting 1500* cr of market cap free of cost in 2 years (currtent m cap of 1800 Cr + 200 cr rights / 75% post right holding).
Management doesn’t have prior history in the listed space, one of their independent directors is guiding them in the space (my insight after meeting the management). So, i don’t know how much we can trust such management.
With wisdom of hindsight; this was a good buy at cum rights & sale after record date. Good learning for the future.
My play on this would be to keep an eye on the Rights REs prices, buy cheap in case opportunity arises. A pure trade play.
Hi.. how do you know that the promoters are not participating? Has it been declared?
yes, decalared
it’s clever move. They hold >75% equity, SEBI doesn’t allow promoters to participate in any fresh equity infusion till the time they bring down to 75%.
Sumeet Ind promoters have brought Rights issue, shall renounce the entitlements, get 150 Cr back (out of ~225 Cr invested in Sumeet)
thanks.. just saw the note in the letter of Offer confirming the same..