Prima Plastics, as the name suggests manufactures plastic moulded furniture (PMF). The company manufactures products ranging from chairs, baby chairs, dining tables, stools, teapoys, material handling products etc and competes with the likes of Nilkamal, Wimplast, and several unorganized players.
Till recently the company also had another business line of Aluminum Composite Panels (ACP), however the same was consistently reporting losses and in FY 15 the management
decided to close the same.
The company sells its products through a network of ~200 distributors and over 2000 dealers across India and operates manufacturing facilities in Daman and in Kerala. Besides
domestic sales, company also exports its products mainly to Africa, Middle-East and Central America.
Further, Prima Plastics also has a 50:50 joint venture (JV) in Cameroon, Africa by the name of Prima Dee-lite Plastics and the same manufactures PMF and HDPE Woven Sack Bags
for sale in Cameroon.
Can Fin Homes Ltd (NSE Code - CANFINHOME) - May'13 Katalyst Wealth Alpha reco...Katalyst Wealth
Housing Finance companies have played a very vital role in the last 10 odd years in helping individuals buy their dream homes. We believe, besides getting your houses financed, one can also consider starting investing at a young age in fundamentally strong, fast growing and reasonably valued companies from the Housing finance space so as to reduce the quantum and the tenure of your home loan at the time of buying your house.
HDFC, Gruh Finance, LIC Housing Finance are some of the very well known listed Housing Finance companies, however we would like to share details with you on another
Housing Finance stock i.e. Can Fin Homes Ltd (NSE Code – CANFINHOME) which until recently was growing at 7-8%, however the renewed focus from the management and the aggressive branch expansion promises better growth prospects for the next few years.
Can Fin Homes Ltd (NSE Code – CANFINHOME) – Promoted by Canara Bank (42.38% stake), Can Fin pre-dominantly offers loans for home purchase, home construction, home improvement/extension and site purchase as well as non-housing finance loans such as
Personal loans, Child education loans, etc. Housing loans constitute ~98% of the advances of the company.
CARE is a Credit Rating, Research and Information Services company promoted in 1993 by major banks/financial institutions (FIs) in India.
CARE’s operations can be divided into two divisions: Credit Rating and Research & Information Services. It offers a wide range of rating and grading services across a diverse range of instruments and industries and also provides general and customized industry research reports on subscription basis; however CARE’s rating business accounts for more than 98% of its revenue and profits.
Despite starting four years after ICRA, CARE is now the second largest credit rating agency in India in terms of revenue.
GIC Housing Finance Ltd (GICHF) was incorporated as ‘GIC Grih Vitta Limited’ on 12th December 1989. The name was changed to GICHF on 16th November 1993. It’s promoted by well known domestic re-insurer General Insurance Corporation (GIC) and is a well-known company in India’s Housing Finance market.
The Company was formed with the objective of entering into the field of direct lending to individuals and other corporate to accelerate the housing activities in India. The primary business of GICHF is granting housing loans to individuals and to persons/entities engaged in construction of houses/flats for residential purposes.
We like the company on account of its steady well managed growth in a growing market. The company has become slightly aggressive in terms of expansion into states other than Maharashtra and has been consistently adding new branches outside Maharashtra. The company also seems to have managed its loan book well and has made adequate provisions. GICHF is trying to reduce the share of bank borrowings and the same will help in reducing cost of funds with consequent improvement in net interest margins (NIM).
Promoted by Chaman Lal Setia, Vijay Setia and Rajeev Setia, Chaman Lal Setia Exports Limited (CLSE) was incorporated as a partnership firm in 1975, under the name Chaman Lal & Sons. In 1995, it went public under its present name to finance the expansion and modernisation of the units.
CLSE is engaged in the business of milling and processing of basmati rice. The company has a paddy unit in Karnal (Haryana) and Amritsar (Punjab) with a rice processing capacity (including both milling and sorting) of 14 tonnes per hour. The company also has a rice grading and sorting facility in Delhi.
We like the company on several fronts, though at the same time one will have to be watchful of risks/concerns as discussed in the risks/concerns section below.
As far as positives are concerned we like the way the operating performance of the company has shaped up over the years, company’s increasing focus on exports, increasing focus on improving the share of branded sales under “Maharani” brand, induction of third generation promoters, high promoter holding, well managed working capital and lastly the valuations.
Aarti Drugs Limited (ADL), incorporated in 1984 is part of Rs 3,000 crore Aarti Group of
Industries and is engaged in manufacturing and sale of Active pharmaceutical ingredients
(APIs), advanced intermediates and specialty chemicals. ADL manufactures drugs in
therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, sedatives,
anti-depressant, anti-diarrhea and anti-inflammatory.
In Aarti Drugs we get a bulk drugs manufacturer with steady growth across the years,
continuously improving performance on various financial parameters, good dividend
yield of more than 5% and low valuations of 5 times earnings and EV/EBIT of 5.28.
Besides, what instills further confidence in the stock is the fact that promoters of the
company have been continuously increasing their stake with regular purchases from open
market. Two years back promoters had 54.83% stake in the company and the same now
stands increased to 59.65%.
Can Fin Homes Ltd (NSE Code - CANFINHOME) - May'13 Katalyst Wealth Alpha reco...Katalyst Wealth
Housing Finance companies have played a very vital role in the last 10 odd years in helping individuals buy their dream homes. We believe, besides getting your houses financed, one can also consider starting investing at a young age in fundamentally strong, fast growing and reasonably valued companies from the Housing finance space so as to reduce the quantum and the tenure of your home loan at the time of buying your house.
HDFC, Gruh Finance, LIC Housing Finance are some of the very well known listed Housing Finance companies, however we would like to share details with you on another
Housing Finance stock i.e. Can Fin Homes Ltd (NSE Code – CANFINHOME) which until recently was growing at 7-8%, however the renewed focus from the management and the aggressive branch expansion promises better growth prospects for the next few years.
Can Fin Homes Ltd (NSE Code – CANFINHOME) – Promoted by Canara Bank (42.38% stake), Can Fin pre-dominantly offers loans for home purchase, home construction, home improvement/extension and site purchase as well as non-housing finance loans such as
Personal loans, Child education loans, etc. Housing loans constitute ~98% of the advances of the company.
CARE is a Credit Rating, Research and Information Services company promoted in 1993 by major banks/financial institutions (FIs) in India.
CARE’s operations can be divided into two divisions: Credit Rating and Research & Information Services. It offers a wide range of rating and grading services across a diverse range of instruments and industries and also provides general and customized industry research reports on subscription basis; however CARE’s rating business accounts for more than 98% of its revenue and profits.
Despite starting four years after ICRA, CARE is now the second largest credit rating agency in India in terms of revenue.
GIC Housing Finance Ltd (GICHF) was incorporated as ‘GIC Grih Vitta Limited’ on 12th December 1989. The name was changed to GICHF on 16th November 1993. It’s promoted by well known domestic re-insurer General Insurance Corporation (GIC) and is a well-known company in India’s Housing Finance market.
The Company was formed with the objective of entering into the field of direct lending to individuals and other corporate to accelerate the housing activities in India. The primary business of GICHF is granting housing loans to individuals and to persons/entities engaged in construction of houses/flats for residential purposes.
We like the company on account of its steady well managed growth in a growing market. The company has become slightly aggressive in terms of expansion into states other than Maharashtra and has been consistently adding new branches outside Maharashtra. The company also seems to have managed its loan book well and has made adequate provisions. GICHF is trying to reduce the share of bank borrowings and the same will help in reducing cost of funds with consequent improvement in net interest margins (NIM).
Promoted by Chaman Lal Setia, Vijay Setia and Rajeev Setia, Chaman Lal Setia Exports Limited (CLSE) was incorporated as a partnership firm in 1975, under the name Chaman Lal & Sons. In 1995, it went public under its present name to finance the expansion and modernisation of the units.
CLSE is engaged in the business of milling and processing of basmati rice. The company has a paddy unit in Karnal (Haryana) and Amritsar (Punjab) with a rice processing capacity (including both milling and sorting) of 14 tonnes per hour. The company also has a rice grading and sorting facility in Delhi.
We like the company on several fronts, though at the same time one will have to be watchful of risks/concerns as discussed in the risks/concerns section below.
As far as positives are concerned we like the way the operating performance of the company has shaped up over the years, company’s increasing focus on exports, increasing focus on improving the share of branded sales under “Maharani” brand, induction of third generation promoters, high promoter holding, well managed working capital and lastly the valuations.
Aarti Drugs Limited (ADL), incorporated in 1984 is part of Rs 3,000 crore Aarti Group of
Industries and is engaged in manufacturing and sale of Active pharmaceutical ingredients
(APIs), advanced intermediates and specialty chemicals. ADL manufactures drugs in
therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, sedatives,
anti-depressant, anti-diarrhea and anti-inflammatory.
In Aarti Drugs we get a bulk drugs manufacturer with steady growth across the years,
continuously improving performance on various financial parameters, good dividend
yield of more than 5% and low valuations of 5 times earnings and EV/EBIT of 5.28.
Besides, what instills further confidence in the stock is the fact that promoters of the
company have been continuously increasing their stake with regular purchases from open
market. Two years back promoters had 54.83% stake in the company and the same now
stands increased to 59.65%.
Symphony is the leading company in India in the air-coolers business and commands ~50% market share in the organized segment.
We like companies that have leadership position or are amongst top 3 in their respective industries as it is reflective of the quality of management, their ability to outgrow competition and with leadership position the companies also get advantages of scale, brand recognition, etc.
Consider this, while the company commands 50% market share, it accounts for ~70% of the profitability of the industry. Thus, as mentioned above, the company clearly has the advantage of scale and brand recognition enabling it to generate much higher profitability than its competitors.
Besides, the company is debt free with surplus cash to the tune of 150 crores (invested in various debt schemes) and only 80-90 crores has been employed in the core business with return in excess of 95% on the capital employed.
Century Plyboards is India’s leading wood-panel Company. It operates mainly in two segments: plywood and laminates. Plywood brings in ~76% of its revenues, laminates about 18%. Container Freight Stations (CFS) account for the remaining.
The company has six plywood manufacturing plants spread across the length and breadth of India and one in Myanmar. It is among the top-three laminate manufacturers with capacity of 4.8m sheets and it also has two container-freight stations at the Kolkata port.
Over the last 30 years the company has emerged as a dominant player in the decorative plywood industry with more than 25% share of the organised market worth 4,500 crores. Against the plyboard industry growth rate of 12% for the last 6 years, Century Plyboard has recorded 18% CAGR led by market share gains from the unorganised segment.
Century Ply has also established itself as one of the leading laminate brands in India (third-largest manufacturer in India after Greenply and Merino) and its laminate revenue recorded a 15% CAGR over FY09-14.
It’s important to note here that of the total plywood industry (15,000 crores +), the share of organized players is still 30%, though it has increased from 10% a decade back. As is being witnessed in other industries, the share of organized players is expected to inch up further from 30% and if GST is implemented then the gain in market share will be much faster. With strong entry barriers (Govt. licensing as a hedge against de-forestations and difficulty in sourcing raw material) the incumbent organized players like Century will be the key beneficiaries of the shift towards branded products.
In order to sustain the growth momentum, the company recently doubled its laminates capacity to 4.8m sheets and increased the plywood capacity to 210,000 CBM. It has also increased its dealer’s base from 1,106 in FY12 to 1,424 in FY14.
As per the management, they are experiencing good demand for their products and expect to sustain 25% + CAGR for the next few years and have in-fact set an ambitious target of 5000 crores revenue by 2020 (1,284 crores in FY 14).
Mrf tyres-Analysis of balance sheet and Ratio statementZil Shah
MRF tyre is a leading brand in the tyre industry in India. The financial position of MRF Ltd. is sound. The liquidity position, short term solvency position and profitability is satisfactory. The progress made by the company during the last 10 years is exceptionally well. The company is growing speedily. Recently MRF won the silver award and is the only Indian company to win this excellence award.
Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members. If you live in Arizona, check out CardinaleWay Mazda's eCommerce website at http://www.Cardinale-Way-Mazda.com
Detailed Analysis of Tata Motors Ltd. by calculating its cost of capital usin...Tushar Sharma
The purpose of the study is to do a detailed analysis of a manufacturing company, Tata Motors Ltd. In this report, we have calculated the beta, cost of equity and the cost of capital for Tata Motors Ltd., one of the largest two-wheeler manufacturing organizations in India. Along with this, we have also studied the capital structure and calculated the degree of financial and operating leverages of Tata Motors Ltd. for the years 2014-15. Data for calculating the beta and risk free rate has been obtained from the Ace Equity. To find out the capital structure and the degree of financial and operating leverage, data has been taken from the annual report of the company
Swaraj Engines (SEL) was set up by the Punjab government’s industrial development arm in 1986, in technical and financial collaboration with Kirloskar Oil Engines Ltd (KOEL). It was set up to manufacture diesel engines for sole supply for “Swaraj” brand of tractors
manufactured by Punjab Tractors (PTL). After several rounds of ownership changes, both PTL and Swaraj Engines are now controlled by India’s largest tractors company, Mahindra and Mahindra (M&M).
Swaraj Engines (SEL) manufactures 20-50 horsepower (HP) engines for “Swaraj” tractors division of Mahindra and Mahindra Ltd (M&M). Besides, it also supplies hi-tech engine components to SML Isuzu Ltd for assembly of commercial vehicle engines; however this division’s contribution to the turnover is very low at about 4-5%.
Analysis of financial statements & earnings quality: Textiles IndustryPip Freixas
This study is done on secondary data primarily published Annual Reports of companies of Textile industries of Bangladesh. Mainly various types of ration analysis has been conducted and finally which company could be the prospective company for investment has been identified. Earning quality and Z-score have also been considered.
Working capital, also known as net working capital(NWC), is the difference between a company's current assets, such as cash, accounts receivable(customer;s unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.
The financial statement analysis and cost reduction programSupa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Case Project: Peugeot's Maker PSA, Suzuki And Renault Keen to Partner with Pr...Afifah Nabilah
This is our group project for Corporate Finance (FIN 4040) class. We are required to find a newspaper article, create an issue and make analysis on the issues involved.
Due to fast moving consumer goods Emami’s focus on increasing rural penetration, favorable monsoon, continuous strengthening of its brand equity and new product funnel strongly in the next 2- 3 years. Narnolia Securities Limited recommended to Buy Stock of Emami Limited
Symphony is the leading company in India in the air-coolers business and commands ~50% market share in the organized segment.
We like companies that have leadership position or are amongst top 3 in their respective industries as it is reflective of the quality of management, their ability to outgrow competition and with leadership position the companies also get advantages of scale, brand recognition, etc.
Consider this, while the company commands 50% market share, it accounts for ~70% of the profitability of the industry. Thus, as mentioned above, the company clearly has the advantage of scale and brand recognition enabling it to generate much higher profitability than its competitors.
Besides, the company is debt free with surplus cash to the tune of 150 crores (invested in various debt schemes) and only 80-90 crores has been employed in the core business with return in excess of 95% on the capital employed.
Century Plyboards is India’s leading wood-panel Company. It operates mainly in two segments: plywood and laminates. Plywood brings in ~76% of its revenues, laminates about 18%. Container Freight Stations (CFS) account for the remaining.
The company has six plywood manufacturing plants spread across the length and breadth of India and one in Myanmar. It is among the top-three laminate manufacturers with capacity of 4.8m sheets and it also has two container-freight stations at the Kolkata port.
Over the last 30 years the company has emerged as a dominant player in the decorative plywood industry with more than 25% share of the organised market worth 4,500 crores. Against the plyboard industry growth rate of 12% for the last 6 years, Century Plyboard has recorded 18% CAGR led by market share gains from the unorganised segment.
Century Ply has also established itself as one of the leading laminate brands in India (third-largest manufacturer in India after Greenply and Merino) and its laminate revenue recorded a 15% CAGR over FY09-14.
It’s important to note here that of the total plywood industry (15,000 crores +), the share of organized players is still 30%, though it has increased from 10% a decade back. As is being witnessed in other industries, the share of organized players is expected to inch up further from 30% and if GST is implemented then the gain in market share will be much faster. With strong entry barriers (Govt. licensing as a hedge against de-forestations and difficulty in sourcing raw material) the incumbent organized players like Century will be the key beneficiaries of the shift towards branded products.
In order to sustain the growth momentum, the company recently doubled its laminates capacity to 4.8m sheets and increased the plywood capacity to 210,000 CBM. It has also increased its dealer’s base from 1,106 in FY12 to 1,424 in FY14.
As per the management, they are experiencing good demand for their products and expect to sustain 25% + CAGR for the next few years and have in-fact set an ambitious target of 5000 crores revenue by 2020 (1,284 crores in FY 14).
Mrf tyres-Analysis of balance sheet and Ratio statementZil Shah
MRF tyre is a leading brand in the tyre industry in India. The financial position of MRF Ltd. is sound. The liquidity position, short term solvency position and profitability is satisfactory. The progress made by the company during the last 10 years is exceptionally well. The company is growing speedily. Recently MRF won the silver award and is the only Indian company to win this excellence award.
Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members. If you live in Arizona, check out CardinaleWay Mazda's eCommerce website at http://www.Cardinale-Way-Mazda.com
Detailed Analysis of Tata Motors Ltd. by calculating its cost of capital usin...Tushar Sharma
The purpose of the study is to do a detailed analysis of a manufacturing company, Tata Motors Ltd. In this report, we have calculated the beta, cost of equity and the cost of capital for Tata Motors Ltd., one of the largest two-wheeler manufacturing organizations in India. Along with this, we have also studied the capital structure and calculated the degree of financial and operating leverages of Tata Motors Ltd. for the years 2014-15. Data for calculating the beta and risk free rate has been obtained from the Ace Equity. To find out the capital structure and the degree of financial and operating leverage, data has been taken from the annual report of the company
Swaraj Engines (SEL) was set up by the Punjab government’s industrial development arm in 1986, in technical and financial collaboration with Kirloskar Oil Engines Ltd (KOEL). It was set up to manufacture diesel engines for sole supply for “Swaraj” brand of tractors
manufactured by Punjab Tractors (PTL). After several rounds of ownership changes, both PTL and Swaraj Engines are now controlled by India’s largest tractors company, Mahindra and Mahindra (M&M).
Swaraj Engines (SEL) manufactures 20-50 horsepower (HP) engines for “Swaraj” tractors division of Mahindra and Mahindra Ltd (M&M). Besides, it also supplies hi-tech engine components to SML Isuzu Ltd for assembly of commercial vehicle engines; however this division’s contribution to the turnover is very low at about 4-5%.
Analysis of financial statements & earnings quality: Textiles IndustryPip Freixas
This study is done on secondary data primarily published Annual Reports of companies of Textile industries of Bangladesh. Mainly various types of ration analysis has been conducted and finally which company could be the prospective company for investment has been identified. Earning quality and Z-score have also been considered.
Working capital, also known as net working capital(NWC), is the difference between a company's current assets, such as cash, accounts receivable(customer;s unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.
The financial statement analysis and cost reduction programSupa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Case Project: Peugeot's Maker PSA, Suzuki And Renault Keen to Partner with Pr...Afifah Nabilah
This is our group project for Corporate Finance (FIN 4040) class. We are required to find a newspaper article, create an issue and make analysis on the issues involved.
Due to fast moving consumer goods Emami’s focus on increasing rural penetration, favorable monsoon, continuous strengthening of its brand equity and new product funnel strongly in the next 2- 3 years. Narnolia Securities Limited recommended to Buy Stock of Emami Limited
Fortune favours the brave, but not anymore. Since global recession has hit stock exchanges across the world, now, fortune favours the cautious. Be astro-smart and ask GaneshaSpeaks for the best day and time to invest in the market.
Stylam, one of the top 3 laminate exporters
in India, has a strong presence in both domestic and
international market (contributes 70% in total revenue). The
company is doubling its capacity at a capex of Rs600 mn,
likely to complete by 2016. Total capacity would increase
to over 12 mn sheets post expansion. Total capacity would
increase to over 12 mn sheets post expansion. The company
expects utilization to reach 50% for new plant within a
period of six months due to introduction of new product
(14ftX6ft wider sheet) which has strong demand in export
market and commands a premium of 10%-15% from
regular products. Further, the company is strengthening its
presence in domestic market with direct penetration
(gradually phasing out distributors), giving better margin
and higher brand recall
Gabriel strategy report sp jain school of global managementedwin john
The report is part of a global immersion project included in the MBA course at SP Jain School of Global Management. The Objective of the project was to support a current organisation in expanding its business globally by leveraging unique business expansion strategies.
Rudra Shares Huhtamaki PPL Ltd.- Short Term Call Research Report AnkurShah108
The best stock broker and share broker in India, Rudra Shares & Stock Brokers is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
Stay tuned for all the good research calls & to enhance your wealth.
Visit us & join our research channel :
https://www.rudrashares.com/Research
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STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT ASSESSMENT 1STRA.docxflorriezhamphrey3065
STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT ASSESSMENT 1
STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT ASSESSMENT5
Strategic Fit With the Industry Environment Assessment
Name:
Institution:
Submission Date:
STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT ASSESSMENT
Executive Summary
Ford Motor Company uses a strategic structure that closely monitors the needs of the business on different conditions of the market. The company manufactures several products that are intended to target a variety of consumers in the market. However, the firm faces several competition from Toyota, General Motors and others. Either way, the company has started a One Ford slogan that pushes it through these economic crisis.
Competitive Analysis
The motor industry is characterized by a rapid increase in innovation. These innovations are all fuelled by the rapid increase in the changes of technology. First, the design of the vehicles were based on “horseless carriages” that the people were used to in those times (Polk & Co, n.d). However with the rapid technological changes, new and fashionable designs are being developed every day. Moreover, there is also the advancement of technologies such as lean production, ERP and others being utilized in the industry.
Every day, the needs of consumers change. Their tastes and preferences are highly versatile which means that Ford Company is always on its toes to try to come up with a new model that will be liked by the consumers. Therefore, they need to incorporate technology in the design of their automobiles according to the consumers’ preferences and tastes. Additionally, legal political factors are also evidenced in the motor industry. Motor industries is viewed as an important aspect in economy of a country. Thus the governments would not want to lose this industry. As a result, the governments have been known to pump cash in the industry to ensure that they keep running.
The most intense competitive forces affecting Ford Company is the high threat of substitutes. There are other substitute’s fuels that consumers could easily switch to which will leave Ford at a disadvantage. Secondly, consumers may also use alternative means and modes of transport and finally, customer loyalty has immense influence on consumers.
Strategic Position and Direction
Ford Company has garnered so much attention with its One Ford campaign. Moreover, with the government interferences, the company is doing so much better. However, their main issue is the uncertainties in the economic direction of the globe. The company uses differentiated strategy in order to target various consumers. The companies produces economy cars, sports cars, trucks and others (Ford Motor Company, 2015). The different variety of products the company offers its consumers gives them wider choices which attracts loyal customers.
The economic standards of countries keep changing as days go by. Therefore, I would recommend that the company changes its geographical sco.
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxmccormicknadine86
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr ...
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxgordienaysmythe
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr.
Part B Individual Case Study – Grantpac Ltd (80 of module.docxherbertwilson5999
Part B: Individual Case Study – Grantpac Ltd (80% of module mark)
Note:
1) Please refer to and read the attached case study and assignment brief carefully.
2) The case is not based on an actual organisation.
Brief
You have been retained as a consultant by Paul Green, the Managing Director of Grantpac Ltd, to advise on the tasks facing the new appointee to the role of National Sales and Marketing Manager.
When you have reviewed and analysed the company information below, you are to write a report for him which must address his concerns with regards to:
· The issues of management style / practices including recruitment and training (30%)
· Sales person performance including motivation, control and remuneration (30%)
· The pressing need to integrate the two sales forces (30%)
You should define actions to be taken and your expected outcomes for these actions. Your recommendations should relate to proposals for the next 18 months to 2 years.
Paul Green has an MBA as well as a degree in Chemistry so he expects both practical and theoretically sound analysis and proposals. You therefore need to provide underpinning, including academic referencing and examples as appropriate.
A further 10% is awarded for the presentation of the report, including formatting, referencing, spelling and grammar.
Your report should be approximately 3000 words in length. (Appendices, bibliography and Executive summary are not part of the word limit)
Please remember the University Regulations concerning plagiarism
FEEDBACK
Date generic feedback will be available:
3 working weeks from submission
How generic feedback will be returned to you:
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Date provisional mark will be available
4 working weeks from submission
How provisional marks will be returned to you:
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Date individual feedback will available
Following exam board
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Hardcopies available from admin
Case Study: Grantpac Ltd
Grantpac Ltd is a medium sized privately owned company based in Coventry and was formed in October 2012 by the merger of two companies: Grant Packaging Ltd based in Coventry specializing in plastic packaging and Cardpac Ltd based in Halifax who specialised in cardboard packaging. It is owned by the directors who acquired the original companies through a series of buy-ins. Paul Green is the Managing Director and owns a 40% share. The Marketing Director, Finance Director, Technical Director and Production Director each own 15% of the Company. The Marketing Director, Ian Slater (aged 63), was previously Managing Director of the cardboard packaging company, the other directors all came from Grant Packaging. Due to ill health Ian is about to retire and sell his stake in the company to the other existing directors. His role will be replaced by a new postion, the National Sales and Marketing Manager.
From its’ factory in Coventry Grantpac supplies a wide range of plastic packaging products used in fmcg industries su.
Financial analysis assignment: Analyzing the Business Strategies of Various C...Total Assignment Help
The major part of operations as discussed in this financial analysis assignment of
Woolworth's Limited is in Australia and New Zealand. The company belongs to consumer goods
industry (Woolworth's, 2019)
A special situation refers to particular circumstances involving a security that would compel investors to buy the security based on the special situation, rather than the underlying fundamentals of the security. This type of investment is an attempt to profit from a potential rise in valuation that the special situation presents. There could be a near-term catalyst to quickly gain from the resolution of a special situation, or it could take many months or years.
Special situation investment opportunities can take many forms and involve multiple asset classes. Typical special situations can arise from spinoffs, tender offers, mergers and acquisitions, bankruptcy or distress, litigation, capital structure dislocations, activism, or just complexity that the market does not understand.
Aarti Drugs (ADL) is a part of well known Aarti group of industries. The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also manufactures formulations through its wholly-owned subsidiary- Pinnacle Life Science Private Limited.
The company has a long standing track record in the bulk drugs industry and has been supplying products to demanding domestic and international customers.
Promoted by Mr. Venkat Jasti, Suven is one of the very few companies in India focused on new drug discovery on its own and in partnership with several innovator companies.
The Hyderabad based company basically focuses on CRAMS (contract research and manufacturing services) and assists global innovators in drug development by supplying intermediates for relevant new chemical entities (NCEs) during the clinical phase of drug development. The projects undertaken by the Company include process research, custom synthesis and intermediate manufacturing.
We are looking at Suven from long term investment perspective as drug discovery in itself is a very long cycle. As explained in the business section below, we believe movement of only few projects of the company to higher phases or to commercialization phase can result in substantial increase in sales of the company. Also, while new drug discovery has very low probability of success, more so in the case of CNS, we believe there can be good upside if the company’s SUVN-502 is able to successfully move to Phase III of clinical trials
Orient Refractories manufactures a wide range of Refractory and Monolithic products for the iron and steel industry and its clients include large domestic integrated steel producers and mini steel plants such as Steel Authority of India, Mukund Steel, Tata Iron and Steel Company, RINL – Vizag, Sunflag Iron, Lloyd Steel, Usha Martin and the Jindal Group.
ORL got listed recently as it entered into a Scheme of Arrangement with Orient Abrasives Limited (OAL) and their respective shareholders for demerger of the refractory business of OAL into Orient Refractories Ltd. The demerger was carried out in Nov’11 and the stock got listed on 9th Mar’12.
Soon thereafter, there was a change in management and shareholding control in the company. In Mar’13, Mr. S G Rajgarhia and other ex-promoters of the company sold their 43.62% stake in the company to Dutch US Holding B.V. at Rs 43/- per share and the latter also acquired another 26% equity shares from public shareholders through open offer. As on date Dutch US Holding B.V. holds 69.62% equity in the company. It is important to note here that Dutch US Holding B.V. is promoted by RHI AG.
Dynemic Products is India’s leading manufacturer and exporter of complete range of Food colours, Lake colours, Blended colours, & US-FDA certified FD&C colours & Dye Intermediates.
AIA Engineering was incorporated in 1978 as Ahmedabad Induction Alloys Pvt. Ltd. In 1992 AIA Magotteaux Pvt. Ltd was formed as JV between Magotteaux (world’s largest player in high chrome mill internals (HCMI)) and AIA. In 2001 the JV ended and the company got renamed as AIA Engineering Ltd as AIA’s promoters bought the Magotteaux’s stake.
AIA is now the second largest high chrome mill internals producer in the world. It manufactures grinding media, liners and diaphragms which are collectively known as
Mill Internals. These are used in crushing and grinding operations in cement, power utility, and mining industries
Established in 1991 and listed on BSE in 1993, Control Print Limited is one of India’s leading Industrial Coding & Marking Solutions provider and the only Indian manufacturer of Continuous Inkjet Printers (CIJ) and consumables under license of KBAMetronic
AG, Germany at its facility in Nalagarh, Himachal Pradesh.
Prior to Control Print’s tie-up with KBA-Metronic AG, it was one of the largest distributors of Videojet CIJ printers in India and Nepal.
Besides CIJ Printers, the company also manufactures Large Character Printers, Electrograph Digital Printers, Thermal Transfer Over printers (TTO), Hot Ink Coders and
their consumables in collaboration with respective technology leaders. The laser range of printers at Control Print is supported by MACSA Lasers. MACSA has over 90 years of experience and are market leaders for Laser Solutions internationally.
Atul Auto is one of the leading manufacturers of 3 wheelers from the state of Gujarat. After attaining leadership position in Gujarat and Rajastha, the company is expanding its presence on pan-India basis
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
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James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
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2. Mittal Consulting www.katalystwealth.com
Content Index
1. Company Snapshot (24th
Jan’16)
2. Understanding Business and Company
3. Plastic consumption in India and Africa
4. Management and Shareholding Pattern
5. Prima Plastics – Performance snapshot
6. Dividend Policy
7. Valuations
8. Risks & Concerns
4. Mittal Consulting www.katalystwealth.com
Understanding Business and Company
Prima Plastics, as the name suggests manufactures plastic moulded furniture (PMF). The
company manufactures products ranging from chairs, baby chairs, dining tables, stools,
teapoys, material handling products etc and competes with the likes of Nilkamal,
Wimplast, and several unorganized players.
Till recently the company also had another business line of Aluminum Composite Panels
(ACP), however the same was consistently reporting losses and in FY 15 the management
decided to close the same.
The company sells its products through a network of ~200 distributors and over 2000
dealers across India and operates manufacturing facilities in Daman and in Kerala. Besides
domestic sales, company also exports its products mainly to Africa, Middle-East and
Central America.
Further, Prima Plastics also has a 50:50 joint venture (JV) in Cameroon, Africa by the name
of Prima Dee-lite Plastics and the same manufactures PMF and HDPE Woven Sack Bags
for sale in Cameroon.
5. Mittal Consulting www.katalystwealth.com
In the domestic market the company plans to expand its presence in eastern region by
establishing plastic goods manufacturing plant in Andhra Pradesh. Further, on the back of
success in Cameroon and experience of exporting to other African and Central American
nations, Prima plastics is exploring the opportunity of setting up manufacturing unit in
small Central American nation. As per the management the aforesaid expansions would
be funded largely though internal accruals.
Discontinuation of loss making ACP division – PMF has always been the core business
of Prima Plastics, however somewhere down the line it ventured into ACP business and
the management’s focus got divided between the two businesses.
While PMF business has been growing consistently and has always been profitable for the
company, ACP was continuously making losses.
Source: Prima Plastics ARs
As can be observed above, ACP unit’s revenues remained more or less in the range of 4-8
crores and the losses before interest and tax amounted to 0.8-2.2 crores.
We believe the above had two negative impacts on the company; the obvious one being
lower profitability and the other major impact being reduced management focus on core
PMF business in a bid to revive weaker ACP business.
However, finally in FY 15 management decided to close down the ACP unit and sold off
the core plant of ACP Division in January 2015. Further, the land, building & other
machinery were retained to accommodate additional requirement of factory space of
plastic division and also to expand plastic business.
6. Mittal Consulting www.katalystwealth.com
So, the profitability is likely to improve on account of 3 factors:
Reduced/zero losses (gradually) from ACP unit
Complete management focus on PMF business
Better utilization of company’s resources (fixed assets as mentioned above) with
diversion from ACP to PMF business
Joint Venture (JV) in Cameroon – Another salient feature of Prima Plastics is its 50:50 JV
in Cameroon, Africa by the name of Prima Dee-lite Plastics and the same manufactures
PMF and HDPE Woven Sack Bags for sale in Cameroon.
The company started this JV at an investment of Rs 1 crore (Prima’s share) in 2006. Since
then there has been no further investment; initially the company did advance interest
bearing loans to the JV, but there are no outstanding loans now and the JV is cash rich.
Source: Prima Plastics ARs
The above picture depicts Prima’s share (50%) of sales and profits in the JV. As can be
observed from the picture, the JV has been performing really well in terms of growth in
sales and profitability, though on a small base.
7. Mittal Consulting www.katalystwealth.com
Also, in terms of return ratios the performance has been excellent because only 12-13
crores (accumulated reserves) is employed in the business which delivered 7.6 crores in
PBT.
In order to maintain the growth rate the JV also recently embarked on USD 1 million
expansion plan funded entirely through internal accruals as the company is cash rich.
Exports – Besides selling plastic furniture domestically, Prima Plastics also exports its
products to African, Middle-Eastern and Central American nations. In fact, it has been
conferred with Top Exporter Awards by PLEXCONCIL India in the Moulded Furniture
Category several times since 1996.
In fact, company could get a foothold in Cameroon and established the manufacturing
unit as the current JV partner was previously distributor of the company in Cameroon.
Source: Prima Plastics ARs
8. Mittal Consulting www.katalystwealth.com
In the above picture we have highlighted the exports sales of plastic goods by Prima
Plastics. The above figures do not include the sales of Cameroon based JV because that
operates as an independent unit and caters to the demand in Cameroon and nearby
African nations.
So, as can be observed the exports sales have been recording good growth and have
grown from 4.66 crores in FY 09 to 19.53 crores in FY 15 and the contribution to the overall
sales has gradually increased from 13% to 25%.
Plastic consumption in India and Africa
Prima Plastics basically derives revenue from sales in India and in Africa in the form of JV
in Cameroon.
Both the regions are in developing phase and currently have low per-capita consumption
of plastic goods, which indicates good prospects for the company provided it executes
well and remains focused on PMF business.
Indian scenario – As per the report by Tata Strategic, India’s per capita consumption of
plastic products is ~10 kg against 32 kg in Brazil, 45 kg in China, 65 kg in Europe and 109
kg in US. Current low per capita consumption level of plastic products as compared to
developed countries per capita consumption suggests that India offers a huge opportunity
over long term.
9. Mittal Consulting www.katalystwealth.com
Source: FICCI, Tata Strategic report
Source: FICCI
Polymer consumption in India as of FY 13 stood at 11 MMTPA and is expected to grow at
CAGR of 9% to 20 MMTPA by FY 20.
Demand in Africa – Africa's overall economy is currently on a growth path. Many
countries in Africa have experienced several years of strong economic growth (ranging
from 8-12% in 2015) and it is now one of the fastest growing markets for plastic goods and
machinery in the world. A growing economy, a population of over 680 million and the
10. Mittal Consulting www.katalystwealth.com
potential for significant long-term growth has made the African continent a priority
market for many international companies. Some of the areas identified as opportunities for
international companies include plastics production machinery (PME) as well as plastics
material resins (PMR). Not to mention the high demand for plastic goods that has been
growing throughout Africa.
According to industry reports, during the past six years the use of plastics in Africa has
grown by an astounding 150%, at a compounded average growth rate (CAGR) of
approximately 8.7 per cent. Imports of plastics into Africa have grown between 23% and
41% during this time. In a recent conference presentation, analysts predicted that the use
of plastics in East Africa alone is expected to treble in the next five years. And there is
potential for much more growth. Plastics consumption per capita in Kenya, for instance
was just 10 kg in 2004 and it is expected to increase to 30 kg by 2020, which is still very low
compared to many other countries in other parts of Africa.
Management
Prima Plastics is led by Parekh family with Mr. Bhaskar Parekh as the Executive Chairman
and his brother Mr. Dilip Parekh as the Managing Director. The promoters own
reasonably good 58.85% stake in the company and thereby their interests are directly
aligned with those of minority shareholders.
Overall, company’s disclosures policies, remuneration to the promoters and related party
transactions are within reasonable range and we haven’t found any major issues in terms
of corporate governance.
Further, sooner than later management has closed the non-profitable ACP unit to focus
only on its core competency of PMF business.
The management has not diluted equity in the last 10 years and has managed to grow the
business through internal accruals and debt. In fact, on consolidated basis the company is
debt free with surplus cash of 3-4 crores.
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Shareholding pattern
Sep’15 Jun’15 Mar’15
Promoter and Promoter
Group
58.85% 58.85% 58.85%
India 58.85% 58.85% 58.85%
Foreign
Public 41.15% 41.15% 41.15%
Total 1,10,00,470 1,10,00,470 1,10,00,470
From a passive investor’s perspective it’s important for the ones running the company to
have high ownership as it aligns their interest in line with those of minority shareholders
and in the case of Prima Plastics the promoters own reasonably good stake at 58.85%
As on 30th Sep’15, the major shareholders of the company and their stakes are as below:
Name of the shareholder Category % stake in Prima Plastics
Promoters and PAC Promoters 58.85%
Dheeraj Kumar Lohia Public 3.02%
Sangeetha S Public 2.00%
Punit Shailesh Bhuptani Public 1.17%
As can be observed, institutional interest in the company is zero; if the company is able to
perform consistently and grow its sales and profitability it will attract institutional interest
and there could be re-rating in the valuations of the stock; however it will happen only
over longer term.
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Prima Plastics – Performance Snapshot
We believe, if both the business and the management are good it should reflect in the
operating and financial performance of the company. If the financial performance has
consistently been poor with no visible signs of improvement, then either the business or
the management or rather both are not good.
In case of Prima Plastics, the second snapshot holds more significance and depicts the
actual performance of the company considering that over the last few years the ACP
13. Mittal Consulting www.katalystwealth.com
division was lowering the profitability of the company and with the same now closed the
entire focus is on PMF division.
As can be observed from the attached snapshots, Prima’s performance over the years has
been reasonable and there are early signs of expected improvement based on important
points discussed in the sections above.
Focusing only on PMF business, the company has reported around 15.4% CAGR in sales
over the last 5 years and ~16% CAGR in PBT over the same period. While domestic PMF
business of the company has reported 11% CAGR for the last 5 years, company’s JV share
has grown from 6.5 crores to 32 crores in terms of sales and 1.7 crores to 7.6 crores in terms
of PBT.
JV in Cameroon has been reporting extremely good performance in terms of growth
(though on a lower base) and profitability and is expected to continue performing well on
the back of relatively low competition and growing demand in the country and nearby
African countries.
As far as domestic operations of the company are concerned, we believe that singular
focus on PMF business and low cost CAPEX at existing facilities should help the company
report higher growth in sales and much higher improvement in profitability in the years
ahead. In fact, in the half year ending Sep’15 the company’s margins have already
improved significantly, though helped by lower crude prices as well.
Further, what is good about the performance of the company is overall focus on fiscal
prudence with company consistently generating positive cash flows from operations and
at the same time reducing debt and attaining cash surplus status.
The ROAEs (return on average equity) look low at 12-15%, however the numbers were
depressed as the ACP division delivered negative returns on capital employed. If only
PMF business division is considered then return ratios have improved to over 20% + since
the last 2 years.
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What’s the way ahead? As mentioned in the sections above, there are several levers for
the expected improvement in the performance of the company in the years ahead and they
are as below:
Closure of ACP unit which was loss making. This will automatically improve the
profitability of the company.
Utilization of facilities earlier dedicated to ACP unit for expansion of PMF capacity.
Expansion in Andhra Pradesh which will help the company address demand in
eastern markets of India
Replicate the business model of JV in Cameroon by setting up a unit in small
Central American nation
The company will be carrying out above mentioned expansions mostly through internal
accruals and therefore we expect the balance sheet of the company to remain healthy.
It’s difficult to pin-point growth potential, but 15-20% + growth seems maintainable with
upside potential over the longer run.
Dividend Policy
Dividend Payout ratio
FY 11 FY 12 FY 13 FY 14 FY 15
Dividend
Payout ratio
38.46% 27.85% 21.65% 14.47% 24.63%
From 2011 to 2014, the company paid Rs 1/- per share as dividend and thereby with
increasing profitability the payout ratio came down. In 2015, the company increased the
divided to Rs 1.5/- per share.
As the company is debt free and is planning expansions through internal accruals, we
believe the dividend policy of the company is well balanced in terms of sharing profits
with the shareholders and retaining the balance for future growth.
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Valuations
At around current price of 110, the market capitalization of the company is 120 crores. The
company is debt free with 3-4 crores surplus cash.
For FY 16, we expect the company to report (on consolidated basis) ~15 crores PBT (13
crores PBT for PMF business in FY 15) and 10-11 crores PAT with average post-tax ROE of
~20%. Thus, the stock is available at ~11 times FY 16 (E) earnings and we therefore believe
that the valuations of the company are reasonable around current levels of 110.
Risks & Concerns
Company is increasingly getting dependent on international operations and any kind of
political turmoil in African countries can impact the performance of Prima Plastics.
In case of huge volatility in raw material prices, the company isn’t able to pass on the same
instantly to its customers and thereby the profitability can get impacted in the shorter
term.
In the past management has ventured into unrelated business of ACPs and similar attempt
in the future can impact the profitability of the company.
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Research Analyst Details
Name: Ekansh Mittal Email Id: ekansh@katalystwealth.com Ph: +91 512 6050062
Analyst ownership of the stock: Yes, analyst owns the stock
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their)
personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation
was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this
research report.
Disclaimer: www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh
Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research
services to retail clients on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No.
INH100001690
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impacting Equity Research Analysis.
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advised to independently evaluate the market conditions/risks involved before making any investment decision
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http://economictimes.indiatimes.com/markets/stocks/stock‐quotes. (Choose a company from the list on the
browser and select the "three years" period in the price chart