Price ` 112 Upside NA Div Yield NA Tenure 2-3 Years Sensex 24673.84 Nifty 7555.20 Group/Index M.cap (` in cr) 1094 Equity (` In cr) 97.68 52 wk H/L ` 167.50/72 Face Value ` 10 NSE code PRABHAT BSE code 539351 RONW 4% P/E 46.7 P/BV 1.9 EV/EBIDTA 10.3 IN ` EV (`in cr) 1252 BV (`in cr) 57.7 NW(`in cr) Est 563 EPS (TTM) 2.4 In % 84.67 Equity Share Capital 97.68 FV 10 9.77 EPS (FY2018 Est.) 9 Est. P/E Ratio 20 180 Year End 201503 201403 201303 201203 Tax Rate % 21.91 17.75 27.92 34.73 Receivable day 66.40 50.15 35.79 - Div. Payout % 1.66 - - - Source:- Google Accumulate RUDRA SHARES & STOCK BROKERS LTD. Dated : 08th April, 2016 DARK HORSE - PRABHAT DAIRY LTD. B / S&P BSE IPO The procurement volume on the quarter-to-quarter basis is like 30,000 liters - 40,000 liters higher than the last quarter. If we see in last three years to four years company have been from 4.5 lakh liters have grown to around 9 lakh liters plus now and again coming in next three years to four years, is expected to reach at least 14 lakh liters to 15 lakh liters of milk for a capacity utilization of 80%-90%. Contract Agreement Future Consumer Enterprise Ltd a FMCG company of Future Group has tied-up with Prabhat Dairy to take its Nilgiris brand of dairy products to a wider market. Tirumala (Lactalis India) has contracted Prabhat to supply them Sweetened Condensed Milk in tubes of different sizes under the brand name of "LACTEL SSHUP" again under their specifications and branding. FY 18Est. Earnings No. Of equity Shares Estimated Price /Share Corporate Governance Transparency Ratio's VALUATION (` In Cr except per share) BUY Investment Rationale Stock Details Key Valuation Ratios Key Financial Data Evolved from a pure liquid milk provider to catering to customized needs of institutional clients with expanded product offerings and selling branded products in retail market On an overall basis, Prabhat while the basic strength of the company remains the integrated diary business model, recently the Cheese Plant which has got commissioned in the Q2 FY16 is also now driving the growth. There are a couple of new product launches Prabhat has made in the last quarter which includes Prabhat Paneer, Prabhat Shrikhand, variants in the Dahi category particularly, which is the flagship product in the cold chain channel and now Prabhat products are also available across a lot of modern trade channels including Big Bazaar, D-Mart, HyperCity and are also coming with a couple of campaigns starting from next month, which is also driving growth overall. Revenue contribution from the above stated value added products & integineous products respectively, is quite small right now, However, in the coming two to three years company expects to contribute largely to its bottom-line from these newly launched products. However, management indicated that the EBITDA Margins would be sustained at 8-10% range. Right now particularly the focus is on Bombay and in coming days this will be expanded to other mini metro cities as well as other major cities of Gujarat and Madhya Pradesh. Cheese made up of cow milk -- Advantage. as Amul's is from buffalo milk:- As cheese has very limited number of players in the country, the capacity which the company has set-up right now, it is the third largest player (in terms of capacity) and very shortly will be one of the major players in the overall thing as well. The capacity utilization as of now, of cheese plant is pretty low at just less than 5% & is expected to get fully streamlined by the next nine months to 12 months. Therefore, from next year as a whole company is expecting a good amount of business coming from Cheese as a vertical. Raw milk »»» The primary raw material used Prabhat has built a strong relationship with local milk farmers, which enables it to procure a large portion of its raw milk requirement directly from milk famers and registered milk vendors. The business operations of the company are dependent on company's ability to procure sufficient amounts of quality raw milk at commercially viable prices. Share Holding Pattern Geographical Advantage combined with Premium Dairy Products:- Prabhat Dairy has the geographical advantage of operating in the highest milk producing region in the country which is Ahmednagar district and then again, the multi-product manufacturing facilities which gives an edge slightly over the manufacturing cost, And most importantly again, dealing only into premium diary ingredients with into certain products which not many people manufacture in this country, therefore, all these things put together makes Prabhat Dairy to operate for slightly better margin of around 9%-10% as against 7%-8% what the peers operate in this industry. Promo ter's 43.84 % FII 31.67 % Bodies Corp. 14.53% Others 9.96%
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Dated : 08th April, 2016 DARK HORSE - PRABHAT DAIRY … DAIRY … · DARK HORSE - PRABHAT DAIRY LTD. ... as Amul's is from buffalo milk:- ... Sweetened condensed milk Skimmed Milk
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Price ` 112
Upside NA
Div Yield NA
Tenure 2-3 Years
Sensex 24673.84
Nifty 7555.20
Group/Index
M.cap (` in cr) 1094
Equity (` In cr) 97.68
52 wk H/L ` 167.50/72
Face Value ` 10
NSE code PRABHAT
BSE code 539351
RONW 4%
P/E 46.7
P/BV 1.9
EV/EBIDTA 10.3
IN `
EV (`in cr) 1252
BV (`in cr) 57.7
NW(`in cr) Est 563
EPS (TTM) 2.4
In %
84.67
Equity Share Capital 97.68
FV 10
9.77
EPS (FY2018 Est.) 9
Est. P/E Ratio 20
180
Year End 201503 201403 201303 201203
Tax Rate % 21.91 17.75 27.92 34.73
Receivable days 66.40 50.15 35.79 -
Div. Payout % 1.66 - - -
Source:- Google
Accumulate
RUDRA SHARES &
STOCK BROKERS LTD.
Dated : 08th April, 2016
DARK HORSE - PRABHAT DAIRY LTD.
B / S&P BSE
IPO
The procurement volume on the quarter-to-quarter basis is like 30,000 liters - 40,000 liters higher than
the last quarter. If we see in last three years to four years company have been from 4.5 lakh liters have
grown to around 9 lakh liters plus now and again coming in next three years to four years, is expected to
reach at least 14 lakh liters to 15 lakh liters of milk for a capacity utilization of 80%-90%.
Contract Agreement
Future Consumer Enterprise Ltd a FMCG company of Future Group has tied-up with Prabhat Dairy to
take its Nilgiris brand of dairy products to a wider market.
Tirumala (Lactalis India) has contracted Prabhat to supply them Sweetened Condensed Milk in tubes of
different sizes under the brand name of "LACTEL SSHUP" again under their specifications and branding.
FY 18Est. Earnings
No. Of equity Shares
Estimated Price /Share
Corporate Governance Transparency Ratio's
VALUATION (` In Cr except per share)
BUY Investment Rationale
Stock Details
Key Valuation Ratios
Key Financial Data
Evolved from a pure liquid milk provider to catering to customized needs of institutional clients
with expanded product offerings and selling branded products in retail market
On an overall basis, Prabhat while the basic strength of the company remains the integrated diary
business model, recently the Cheese Plant which has got commissioned in the Q2 FY16 is also now
driving the growth. There are a couple of new product launches Prabhat has made in the last quarter
which includes Prabhat Paneer, Prabhat Shrikhand, variants in the Dahi category particularly,
which is the flagship product in the cold chain channel and now Prabhat products are also available
across a lot of modern trade channels including Big Bazaar, D-Mart, HyperCity and are also coming with a
couple of campaigns starting from next month, which is also driving growth overall.
Revenue contribution from the above stated value added products & integineous products respectively,
is quite small right now, However, in the coming two to three years company expects to contribute
largely to its bottom-line from these newly launched products. However, management indicated that the
EBITDA Margins would be sustained at 8-10% range. Right now particularly the focus is on Bombay and
in coming days this will be expanded to other mini metro cities as well as other major cities of Gujarat
and Madhya Pradesh.
Cheese made up of cow milk -- Advantage. as Amul's is from buffalo milk:-
As cheese has very limited number of players in the country, the capacity which the company has
set-up right now, it is the third largest player (in terms of capacity) and very shortly will be one of the
major players in the overall thing as well.
The capacity utilization as of now, of cheese plant is pretty low at just less than 5% & is expected to get
fully streamlined by the next nine months to 12 months.
Therefore, from next year as a whole company is expecting a good amount of business coming from
Cheese as a vertical.
Raw milk »»» The primary raw material used
Prabhat has built a strong relationship with local milk farmers, which enables it to procure a large
portion of its raw milk requirement directly from milk famers and registered milk vendors. The business
operations of the company are dependent on company's ability to procure sufficient amounts of quality
raw milk at commercially viable prices. Share Holding Pattern
Geographical Advantage combined with Premium Dairy Products:-
Prabhat Dairy has the geographical advantage of operating in the highest milk producing region in the
country which is Ahmednagar district and then again, the multi-product manufacturing facilities which
gives an edge slightly over the manufacturing cost, And most importantly again, dealing only into
premium diary ingredients with into certain products which not many people manufacture in this
country, therefore, all these things put together makes Prabhat Dairy to operate for slightly better
margin of around 9%-10% as against 7%-8% what the peers operate in this industry.
Note:- The figures shown in the brackets means NEGATIVE.
RUDRA SHARES &
STOCK BROKERS LTD.
RATIO ANALYSIS
Free CF post Dividend
CASH FLOW ANALYSIS
Disclosures :
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5)
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b) No
c) No
6) Other Disclosures:
Yes/No
Sr. No.
a) No
b) No
c) No
RUDRA SHARES &
STOCK BROKERS LTD.
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