Transcript
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Bloomberg code ASSB
Financial Highlights (Rs mn)
Initiating coverageReduceRs63
12 March 2009
HDILHigh dependence on TDR market and weak macro outlookmakes us bearish. Initiating coverage with a Reduce rating
Sastha Gudalore
91-22-6639 9177
sastha.kumar@alchemyonline.com
March end FY07 FY08 FY09E FY10E FY11E
Net sales 12,165 24,323 17,425 11,538 12,540
Net profit 5,416 14,104 7,303 2,099 2,788
EPS (Rs) 30.1 68.0 33.8 7.6 10.1
PER (x) 2.0 8.9 6.7
ROE (%) 118.8 64.6 18.0 4.6 5.8
ROCE (%) 72.9 35.9 9.4 2.3 3.0
EV/EBITDA (x) 2.5 2.5 6.5 17.3 14.4
We believe that HDIL will underperform due to continual reduction invalue generated by the Mumbai airport project and a deterioratingtransfer of development rights (TDR) market. A large portion of its landbank (~70msf) is located in the Vasai/Virar region where we expectdevelopment to be slow. We initiate coverage on this stock with aReduce rating and a price target of Rs56/share.
TDR prices still have more downside
While home prices and commercial values have corrected by over20%, TDR prices have crashed over 75% from Rs4,200psf toRs1,000psf. We believe that oversupply and lack of demand in thismarket could push down prices even further. As HDILs FSIinventory depletes, it would be significantly dependent on TDRsales to generate revenues. TDRs comprise ~25% of HDILs landbank and the Mumbai airport project alone is expected to generate~50msf of TDR.
Mumbai Airport Project has lost significant valueWe value the Mumbai Airport Project at Rs16/share which makes23% of its net asset value. The loss in value (compared to whatwas expected previously) is mainly due to an unprecedented fall inTDR prices and lack of demand/oversupply of commercial space.Currently, we believe that most of the project value will begenerated by the saleable portion of ~6.3msf (of the 53 acre PhaseI plot) which has a FSI of 4 (even for the saleable portion). Thecompany has announced residential development of 0.75msf in theplot. However, we believe that value will be created only if weassume commercial development in this plot. Given the crash inTDR prices, we do not believe that Phase II and Phase III of theproject will generate any meaningful value. Therefore, we believeHDIL could try and exit the project after Phase I, if it is allowed bythe contract.
HDIL looking to de-risk its business model from SRS and mega
structuresHDIL has opted out of bidding for Dharavi SRS project and haschanged its plan to launch a residential project in Kurla (instead of acommercial development). The management indicated that it willnot invest in SEZs for the next three years. We believe this is abetter strategy in this environment though HDIL still has some megastructure projects (Eveready, Bombay Oxygen, Kilburn land) in itspipeline which may require considerable capital investment.
Valuation
We estimate HDILs NAV at 69/share. We have arrived at our 12-monthprice target of Rs56/share after applying a discount of 20%. This impliesan 12% downside from current levels. We initiate coverage with aReduce rating.
Reuters code HDIL.BO
Bloomberg code HDIL IN
Shares o/s 275.49 mn
Mkt Cap Rs17bn / US$337mn
52 week high/low Rs679/63
Avg daily trading volume 21.70mn shares
BSE Sensex 8160
Nifty 2573
Shareholding pattern (%)
Promoters 61.5
Flls 10.0
Banks/FIs/MFs 0.5
Public/Others 28.0
Performance (%) 1m 3m 12m YTD
Absolute -21.7 -29.0 -86.8 -51.2
Relative to Sensex -8.0 -20.3 -74.2 -42.3
Share Price Movement
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Why should you read this report?
We have valued the Mumbai Airport project
separately
Sensitivity of TDR prices on Mumbai Airport
project
Financial Highlights
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Contents
Mumbai focused land bank a positive.............................................................................................. 3
Mumbai airport project: HDIL does not have any incentive to go beyond Phase I ......................... 3
Mumbai Airport project and Phase I rehabilitation location ............................................................. 4
Phase I details and valuation ...................................................................................... ..................... 4
Key risks of Phase I............................ .............................................................................................. 5
Complete project details and valuation............................................................................................ 5
Key takeaways...................................................................................... .......................................... 5
Projects under progress .............................................................................................. ..................... 8
Valuation................ .............................................................................................. ............................ 9
About HDIL............................................................................. ....................................................... 10
Business Structure of HDIL......................................................................................... ................... 10
SRS - Slum Rehabilitation Scheme .................................................................................. ............. 11
Slum rehabilitation process .................................................................................... ........................ 12
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MUMBAI FOCUSED LAND BANK A POSITIVEHDIL has a Mumbai focused land bank with over 87% in the MMR region. Transfer of
development rights (TDR) forms a substantial portion of its land bank. Nearly 50msf of
TDRs is expected to be generated by the Mumbai airport project itself. However, we
note that ~70msf of its land bank lies in Vasai/Virar region where development is
expected to be slow.
Table 1: Large concentration of TDRs in land bank
Land reserves Established
developable area (msf)
% of developable
area
Land owned by the company 95 48
Land over which company has sole development 67 34
MoU/agreements to acquire/letters of acceptance 21 11
Joint development with partners 14 7
Total 196 100
Source: Company
Although prices in the Mumbai market have corrected substantially recently, we view
large land concentration in Mumbai as a positive as 1) Mumbai is a land locked region
with limited free land available and 2) long term growth prospects in Mumbai look
brighter as it is the financial hub of India.
Chart 1: Overwhelming focus on Mumbai for future planned launches (133msf)
81%
11%7% 1%
MMR Kochi Hyderabad Pune
Source: HDIL, Alchemy Research
MUMBAI AIRPORT PROJECT: HDIL DOES NOT HAVE ANY INCENTIVETO GO BEYOND PHASE IAbout the project
The Mumbai Airport Project is the largest urban rehabilitation scheme in India. It
involves rehabilitation of 80,000 to 85,000 slum families. The objective of the project
(apart from rehabilitating slums) is to free up land for modernization of the Mumbai
international airport.
The project envisages clearance of 276 acres of land currently occupied by slum
tenements close to the airport. The timeline of the project is 5 years. Phase I of the
project involves rehabilitation of 18,000 to 20,000 families with a construction timeline
of 15 to 18 months (completion by the end of CY09).
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MUMBAI AIRPORT PROJECT AND PHASE I REHABILITATION LOCATION
Source: HDIL, Google Maps, Alchemy Research
PHASE I DETAILS AND VALUATION For phase I, HDIL is rehabilitating slum dwellers in 53 acres of land that it owns
in Kurla (Premier Auto Factory). 38 acres will be used for rehabilitation while
the remaining will be used for building residential/commercial developments forsale. HDIL will get an FSI of 4 for the entire plot including its residential and
commercial saleable developments.
Phase I rehabilitation development is scheduled to be completed by the end of2009.
The company has launched a residential development at Kurla (a total of 756flats) last week at a price of Rs5,251psf. The company indicated that they had
sold around 400 flats in the first two days of launch. Our assumptions of sale
price are Rs5,250psf as it already at a significant discount to market rates.
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We have assumed that the rest of the saleable area (5.55msf) in phase I willbe used for a commercial development.
From Table 2, we get the per share value of Phase I to be Rs21/share.
KEY RISKS OF PHASE IOversupply of commercial space and lack of capital may make the company decide
to build residential apartments in the rest of the 5.55msf saleable area. This may
result in a significant loss in value.
Table 2: Phase I valuation results in a per share value of Rs21
Phase I Comments
No of families 18,000 18,000 to 20,000
Land used for rehab (acres) 38
Rehab area built (msf) 6.3 269sqft per tenement. Loading of 30%.
Construction TDR (msf) 8.4 1.33X rehab area built
Land TDR (msf) 2.2 1.33X land area used
Total TDR (msf) 10.6
Revenues (Rs mn)
Residential component value (0.75msf) 2,047 Selling price of 5,250psf
Commercial component value (5.55msf) 26,229 Capital value of Rs10,000psf, disc over 3.5yrs
TDR sales (Rs mn) 8,987 Assuming PV of selling price of Rs850psfTotal sales (Rs mn) 37,557
Costs
Cost of land (mn) 19,000
Construction cost (mn) 6,924 Taking Rs1,100psf construction cost
SG&A (10% of revenues) (mn) 3,756
Total costs (Rs mn) 29,680
Income (Rs mn) 7,877
Tax @ 25% 1,969
Net present value (Rs mn) 5,908
Net Value per share (Rs/share) 21
Source: Alchemy Research Estimates
COMPLETE PROJECT DETAILS AND VALUATION Project involves clearing 80,000 to 85,000 families from 276 acres of land.
The current estimated timeline for the entire project is five years.
Valuation of the entire project is just Rs16/share. (see table 3)
Key takeawaysUnless the TDR market picks up, HDIL may not be very keen on completing the entire
project as there is destruction in value of Rs5/share if it goes ahead with Phase II & III.
It would therefore look to exit after completing Phase I. The government may have to
give some incentives to keep HDIL interested in the project.
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Table 3:Valuation of the entire project at Rs16/share implies destruction in value in Phase II&IIIMumbai Airport SRS project
Assumptions
Total land to be cleared (acres) 276
A Nos of families 82,500 (around 80,000 to 85,000)
B Carpet Area/family (sqft) 269
Airport project cost
Land CostC Land required for rehabilitation (acres) 165 (as per management guidance 150 to 180 acres)
D Cost of land/acre ( Rs mn) 220 (220 as per management guidance)
E Total land cost (mn) = C*D 36,300
F Amount paid (Rs mn) 30,000 (Rs19bn paid in FY08 and Rs11bn is in loans & advances)
Remaining cost to be paid (mn) 6,300
G NPV of remaining cost 4,839 (discounted at 14% for two years)
Rehab Construction Cost
H Rehab Construction cost (psf) 1,100
Rehab Construction cost (mn) = A*B*H*1.3 31,735 (loading of 30%)
I PV value of construction cost (mn) 24,374 (discounting over an average of 2.5 years @ 14%)
J Total cost of Airport project = F+G+I 59,213
TDR generation
Construction TDRConstruction TDR is based on the progress of construction at
the rehab land rather than clearing of slums
Rehab area constructed (msf) = A*B 22.2
Loading 30%
K Built-up area (msf) 28.9
L Construction TDR (msf) = K*1.33 38.4 1.33X rehab area as this is a difficult project
Land TDR
M Area used for construction (acres) 165
N Land TDR received (msf) = M*1.33*43560 9.6 1.33X (as this is land in the suburbs, you automatically get 1.33
FSI Total TDR received (msf) = L+N 47.9
O NPV of TDR revenues 30,266 (Using TDR prices of Rs900psf), sold over period of 10yrs
P Residential development at Kurla (0.75msf) 2,047 (Selling price of 5250psf)
Q Commercial component value (5.55msf) 26,229 (Capital value of Rs10,000psf), discount by 3.5 years
R MIAL land (65 acres) 13,370 (Assuming land sale at Rs43crore an acre), discount by 5.5years
Gross income of airport project (mn) O+P+Q+R 72,205
minus:Total land + rehab construction cost 59,213
minus:SG&A & other costs (10% of GI) 7,221
Value of airport project 5,772mn
Tax @ 25% 1,443
Net present value of airport project 4,329mn
Value per share (Rs) 16
Source: Alchemy Research Estimates
We have valued the Mumbai Airport redevelopment project as a whole at Rs16/share.
However, we note that there are several fluid assumptions in this valuation and the mostcrucial is sensitivity to TDR prices. We did a sensitivity of the value of airport project
by varying TDR prices. The results are listed in the table below. As can be seen from
Table 4 we believe that the value of the project could be zero if TDR prices fall to
Rs675psf.
Table 4:Sensitivity of airport project value to TDR prices
TDR prices (Rs psf) 1,200 1,000 900 800 700 675
Airport project value/share (Rs) 37 23 16 9 2 0
Source: Alchemy Research
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HDIL looking to diversify risk from SRS does not bid for Dharavi SRS
HDIL has opted out of bidding for Dharavi slum redevelopment but will look to
participate in the project through sub-contracting by the eventual winners of the bid.
HDILs application was always in doubt after its financial partner Lehman Brothers
went bankrupt. We see this as a sign that all is not fine with the Mumbai Airport project
and that the company believes that the Dharavi project would not be viable in the
absence of a strong financial partner. SRS redevelopment projects require substantial
capital for upfront construction of rehab houses. Although HDIL has restructured mostif the debt which was due over the next year (see section on HDIL making progress in
restructuring debt), we estimate that it would have struggled to raise incremental debt
for this project. HDIL is the largest player in the SRS space and has the best
understanding of dynamics and capital requirements of these projects.
Currently, we believe there is too much focus on large scale SRA developments and
integrated townships. We believe that HDIL needs to change its business model to move
away from parking funds in mega structure projects in the current environment.
Demand has rapidly fallen off and so has the appetite for large scale projects.
HDIL is currently working towards including residential developments in its product
mix. If pre-launches of residential projects are even party successful, the project could
receive some funds which can be utilized to fund construction.
Dependence on TDR will pressure near term revenues
A large portion of HDILs revenues are expected to be generated from TDRs which is a
business to business (B2B) transaction where a developer buys incremental development
rights through TDR. The company is expected to generate close to 50msf of TDR from
the Mumbai Airport Project. TDR prices have fallen over 75% from Rs4200psf in
March, 2008 to Rs900-1000, currently.
TDR prices and demand for TDR has been affected by the following factors
In March 2008, the government of Maharashtra increased the base FSI insuburbs to 1.33 from 1. A maximum FSI of upto 2 is allowed in the suburbs
through the usage of TDR. The incremental FSI above the base FSI could be got
through use of TDR. Now after the new rule, just 0.67msf of TDR is required (2
minus 1.33msf) compared to 1msf of TDR previously (2 minus 1msf) to buildupto the maximum permissible FSI.
TDR can only be used in the suburbs and north of where TDR was generated.As land available for development is limited in the suburbs and a huge quantum
of TDR supply has entered the Mumbai market demand is lesser than supply
which will pressure rates.
A large number of developers have shelved new construction plans and scaleddown existing plans. This has reduced demand for TDR.
TDR outlook continues to be weak
TDR prices are down to around Rs900-1000psf. HDIL said that its cost of generating
TDR works out to around Rs850psf which may indicate that TDR prices may be close
to bottoming out. However, we believe that TDR prices could further trend downwardsas 1) demand is limited as developments are being pushed back or cancelled and 2)
HDIL is dependant on TDRs to generate cash near term to fund its interest payments
and hence will be willing to sell at discounted prices.
Project completion methodology to recognize revenues is a positive
HDIL recognizes revenues using the project completion methodology compared to
percentage of completion methodology. The latter is widely followed in the real estate
sector. While this leads to lumpiness in revenues, it is a much more conservative method
of accounting. We believe this is a positive for the company as companies which follow
POCM may have to write back revenues recognized if sales booked dont materialize.
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DLF already expects to write down Rs200mn of revenues due to retrospective price cuts
in Chennai.
HDIL is making progress in restructuring debt
The company is currently in the process of restructuring its short term debt to match
cash outflows with inflows.
In its 3QFY09 conference call, the management indicated that it had
restructured/refinanced Rs6.5bn of debt until January 20, 2009. This took care of mostof its loan liability for the next six to nine months. The management also indicated that
it was looking to restructure Rs12.75bn of non-convertible debentures (NCDs) which
are due in FY10. The total repayment liability for the next fiscal was ~Rs.16bn. The
company has subsequently restructured Rs12bn of NCDs at 12.5% for duration of three
to five years.
HDIL has therefore substantially improved its liquidity situation over the past month
although we note that it still has a D/E of 0.92. This may result in difficulties in raising
incremental debt. However, we note that the company has already tied down funding for
Phase I of the Mumbai Airport Project and does not have any land repayments due for
the next few months, as per the company.
Table 5:Liquidity project funding details of HDIL
Funding requirement CommentsMumbai airport Project Phase I Land paid for and Construction cost of ~Rs7bn tied
SEZ project in Virar/Vasai No money expected to be invested in SEZs for 3
years
Residential
Project Metropolis (Andheri) Fund by pre-launch of residential (300 flats) by March
endKurla project Pre Launch at Rs5251psf.
Reportedly booked 400 flats.
Balance sheet/Cash flow
Land repayments Nothing due over the next few months
Annual gross interest of over Rs5bn Cash from TDR sales/ profits from residential sales
Rs 16bn debt repayments in FY2010 Rs12bn has been restructured
Source: Alchemy Research
PROJECTS UNDER PROGRESSHDIL is planning to develop large scale townships in the Mumbai region 1) HDIL
heights Ghatkopar East, 2) Bombay Oxygen land in Mulund, 3) HDIL Astra Navi
Mumbai.
The current ongoing residential projects are Kurla project, Project Metropolis at Four
Bungalows (Andheri West), Pantnagar (Ghatkopar), and Grand (Bandra W) .
The HDIL management said that it does not plan to put in any money into SEZs for the
next three years.
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Table 6:Major projects under progressResidential
Project Location Saleable area (msf)
Project Metropolis Andheri (W), Mumbai 1.7
(Four bungalow) Residential (300 Flats) 0.45
Commercial 1
Retail 0.25
Project Kurla Kurla, Mumbai 0.75(more than 850 flats)
(1,1.5, 2 bhk flats)
Pantnagar Project Pantnagar, Ghatkopar(E),
Mumbai
Low cost housing Virar, Mumbai
Commercial
Project Location Saleable area (msf)
Commercial complex, IT Park Nahur, Mumbai
Commercial complex, IT Park Turbhe, Navi Mumbai 1.8
(approx 15 acres plot)
Commercial complex, IT Park Mulund, Mumbai 1.5
(Commercial, Residential, Retail)
Commercial complex, IT Park Bhandup, Mumbai
Cyber City Kalamasserry, Kochi 8
Commercial complex, IT City
Pune Kharadi, Pune 1.2
Residential -0.4, Commercial -0. 8
Source: Company, Alchemy Research
Valuat ionWe have valued the company using the NAV methodology and have listed our
assumptions below. We have arrived at our price target of Rs56/share after applying a
discount of 20% to NAV. This implies a 12% discount to current market price.
Table 7:Our NAV based valuation methodology gives a price target of Rs 56/share
Valuation summary Rs mnMumbai airport project 40,829
FSI /TDR sale 5,000
Vasai/Virar/Palghar land 4,132
Commercial & Retail 10,082
Residential 4,164
Gross Asset Value (GAV) 69,722
Less: Net debt 39,579
Less: other net liabilities 5,484
Net Asset Value 24,660
No of shares outstanding (millions) 275
NAV per share 69
Discount to value (%) 20
Price target (Rs/share) 56Source: Alchemy Research
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Table 8: Key assumptions driving our NAV analysis
Parameter Assumptions
Weighted avg cost of capital (%) 14
Discount to NAV (%) 20
Residential property selling prices
Kurla 5,250 psf
Andheri 8,000 psf
Hyderabad 1,800 psfGhatkopar 5,500 psf
Commercial property cap rate (%) 12
Not valued Kochi Kalammassary as project is stuck in litigation
SEZ
Valued Virar/Vasai land at Rs2.5mn an acre
Source: Alchemy Research
About HDILThe Wadhawan group, promoter of HDIL, has over three decades of experience in the
real estate business and have developed more than 100msf of area. HDIL went public in
July 2007 and raised over Rs16bn of capital which was mainly used to fund construction
of its projects, and acquisition of land and development rights. HDIL has completed 32
projects upto December 31, 2008 which amounts to total developed area of 32.4msf.The company has established itself as a leader in the SRA business and is currently
working on the Mumbai Airport slum rehabilitation project. It is one of the largest SRA
projects involving rehabilitation of approximately 80,000 to 85,000 slum dwellers. The
company currently has 15 ongoing projects of 61msf.
BUSINESS STRUCTURE OF HDIL
Source: Company
New Business
HDIL
Core Business
Commercial
Residential
Retail
SRA/Land
Development
Infrastructure Entertainment
SEZ
Townships
Multiplex
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SRS-SLUM REHABILITATION SCHEMEAdvantages of slum rehabilitation projects
Release of valuable land: Helps to release valuable land in the heart of the city.
Low cost of land: Cost of land is only cost of construction of rehab buildingsfor the developer.
Additional FSI: FSI of the land can range from 3 to 4 depending on the densityof slums being cleared.
High barriers to entry as clearing slums require expertise.
Disadvantages of slum projects
The release of TDR through SRA adds to the already existing oversupply.
The developer has to bear clearing and rehabilitation costs.
SRA projects generally have large gestation periods.
HDIL are specialists in slum redevelopment and have to date built total rehabilitation
area of 3.31msf and saleable area of 3.6msf in slum land. HDIL has rehabilitated around
25,000 of total 65,000 slum units in Mumbai. HDIL is also currently doing one of the
largest SRA projects for rehabilitation of approximately 85,000 slum dwellers as a part
of Mumbai airport modernization.
Slum rehabilitation has tremendous scope in Mumbai given over 54% of Mumbais
population lives in slums. However, recently many of these large projects are generating
huge supply of TDR in the market. There is limited demand for TDR in the current
environment.
Table 9: As per Census 2001, 54% of Mumbai population lives in slums
Municipal Corporation State Population Slum population % slum population
(thousands) (thousands)
Greater Mumbai Maharashtra 11,978 6,475 54.1
Delhi Delhi 9,879 1,851 18.7
Kolkata West Bengal 4,573 1,485 32.5
Chennai Tamil Nadu 4,344 820 18.9Nagpur Maharashtra 2,052 737 35.9
Hyderabad Andhra Pradesh 3,637 627 17.2
Surat Gujarat 2,434 508 20.9
Pune Maharashtra 2,538 492 19.4
Faridabad Haryana 1,056 491 46.5
Ahmadabad Gujarat 3,520 474 13.5
Meerut Uttar Pradesh 1,069 472 44.2
Bangalore Karnataka 4,301 431 10.0
Jaipur Rajasthan 2,323 369 15.9
Kanpur Uttar Pradesh 2,551 368 14.4
Thane Maharashtra 1,263 351 27.8
Source: Census 2001, HDIL
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SLUM REHABILITATION PROCESS
Source: SRA
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Income Statement Rs mn
March end FY07 FY08 FY09E FY10E FY11E
Net sales 12,165 24,323 17,425 11,538 12,540
Growth (%) 176 100 (28) (34) 9
Total expenses 5,237 6,352 6,256 5,885 5,809
EBIDTA 6,502 16,895 9,157 3,614 4,491
OPM (%) 54 71 55 34 39
Other income 12,165 24,323 17,425 11,538 12,540
Interest 445 1,385 1,875 1,932 1,990
Depreciation 6 14 20 21 23
PBT 6,182 16,021 8,073 2,499 3,400
Tax 766 1,917 769 400 612
Net profit 5,416 14,104 7,303 2,099 2,788
Net profit margin (%) 45 58 42 18 22
Cashflow Statement Rs mn
March end FY07 FY08 FY09E FY10E FY11E
Cash from operations
Net profit before tax 25,402 16,021 8,073 2,499 3,400
Depreciation 578 14 20 21 23
Working capital changes 23,854 15,706 8,386 2,520 3,423
Operating cash flow (55,673) (39,341) (12,389) (1,490) (1,718)
Capex 1,051 (451) (1,161) (253) (266)
Free-cash flow (54,622) (39,792) (13,550) (1,743) (1,984)
Increase in share capital 0 16,402 0 0 0
Debt increase/(decrease) 72,517 27,371 11,923 1,500 2,000
Miscellaneous expenses (24,086) (534) (1,034) 0 0
Cash flows from financingactivities
48,431 43,238 10,889 1,500 2,000
Net change in cash and cashequivalents
(6,191) 3,446 (2,661) (243) 16
Cash at the beginning of the year 1,105 48 3,494 833 590
Cash at the end of the year(5,086) 3,494 833 590 606
Ratios
March end FY07 FY08 FY09E FY10E FY11E
Valuation (x)
EPS (Rs) 30.1 68.0 33.8 7.6 10.1
BVPS (Rs) 40.4 178.5 172.1 170.1 180.2
PER 2.0 8.9 6.7
P/BV 1.7 0.4 0.4 0.4 0.4
EV/EBITDA 2.5 2.5 6.5 17.3 14.4
EV/EBIT 2.5 2.5 6.6 17.4 14.5
Profitability (%)
EBITDA margin (%) 54.0 71.0 55.1 33.8 38.7
Net margin (%) 44.5 58.0 41.9 18.2 22.2ROE 118.8 64.6 18.0 4.6 5.8
ROCE 72.9 35.9 9.4 2.3 3.0
Turnover Ratios
Credi tors Turnover 13.8 13.7 13.1 15.7 18.2
(In months)
Inventory Turnover 18.2 59.1 111.6 138.3 150.6
(In months)
Debtor Turnover 1.9 0.9 0.7 1.6 1.6
(In months)
Balance Sheet Rs mn
March end FY07 FY08 FY09E FY10E FY11E
Equity share capital 1,800 2,143 2,755 2,755 2,755
Reserves & surplus 5,468 34,229 42,013 44,112 46,900
Networth 7,268 36,372 44,768 46,867 49,655
Deferred tax l iab il ity 8 15 21 21 21
Total debt 3,757 31,127 43,051 44,551 46,551
Total sources of funds 11,033 67,515 87,840 91,439 96,227
Net block 236 527 561 564 566
Capital work-in-progress 3 52 127 127 127
Investment 1,650 2,126 4,580 4,809 5,049
Inventories 11,525 51,028 65,376 70,279 75,550
Sundry debtors 3,103 558 1,530 1,606 1,687
Cash & bank balance 48 3,494 833 590 606
Loans & advances 2,319 16,343 21,847 21,847 21,847
Current liabilities 7,219 4,917 6,849 8,219 9,040
Provisions 632 1,696 165 165 165
Net current assets 9,144 64,810 82,572 85,939 90,485
Total uses of funds 11,033 67,515 87,840 91,439 96,227
Source: Company, Alchemy
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SalesArun Singh arun@alchemyonline.com 91-22-6639 9124/5
DealingChetan Chitroda chetan@alchemyonline.com 91-22-6639 9134
Disclosure of interest statementAnalyst holding of the stock NO
Firm holding of the stock NO
Owners holding of the stock NO
DisclaimerThis report is not a solicitation or offer to buy or sell any securities or related financial products. The information and commentaries are also not meant to
be endorsements or offerings of any securities, options, stocks or other investment vehicles. The report is intended for general circulation and does not takeinto account the specific investment objectives, financial situation or particular needs of any particular person. The securities discussed in this report may
not be suitable for all investors. The appropriateness of any particular investment or strategy whether opined on or referred to in this report or otherwise will
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Investment ideas and/or corporations discussed in this website may have a high level of volatility. High volatility investments may experience sudden and
large falls in their value causing losses when the investment is realised. Those losses may equal the original investment. Some investments may not bereadily realisable and it may be difficult to sell or realise those investments. Similarly, it may prove difficult to obtain reliable information about the value
and risks to which such an investment is exposed. Neither us nor any of our affiliates shall assume any legal liability or responsibility for any incorrect,misleading or altered information contained in this report.
Past performance is not necessarily indicative of future results and there can be no assurance that any investment will achieve comparable results or its
investment objectives. Investors may not get back the full amount invested and the net asset value of the investment will fluctuate. Exchange ratefluctuations may affect the return to investors.
Alchemy Share and Stock Broker Pvt. Ltd., their respective affiliate companies, associates, directors and/or employees may have investments in securities
or derivatives of securities of companies mentioned in this report, and may make investment decisions that are inconsistent with the views expressed in this
report.
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