Last year AR had a line item for Other Long-Term Liabilities to the tune of Rs.21 crores which is cleared now in the last quarter.
Other Long-term Liabilites had 2 items:
Security Deposits : Rs.06.0 crores
Interest accrued but not due on borrowings: Rs.20.92 crores.
I guess this must be the interest that was due to the promoters for their loans to the company. Not sure how the market will read it :
a)Why they paid their due first when they have over Rs.100 crores outstanding long-term loans.They really worked hard to keep the company going during tough times,they do deserve it.
b) They still have Rs.200 crores long term loans ( Term loan Rs.110 crores and Unsecured loans from directors/inter corporate depositsRs.87.16 crores)
and Rs.59 crores short term loans(working capital loans).
From next quarter onwards,it will be interesting to see which one they will pay back first.
Now coming to the valuations,Pokarna currently trades at an Enterprise value to sales of 2.33 ( Market cap of Rs.673 crores + Debt of Rs.260 crores) / Sales of Rs.400 crores.
Despite having superior margins of OPM over 25% and net profit of over 10%,end of the day it is a building materials company.So,not sure if it will get better valuation than this.Going forward,growth will be incremental tracking the earnings data.
Other building material companies like Kajaria,cera are trading at 3 times the market cap to sales.
Disclosure: Invested.
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