NCL BuildTek , in which NCL ind. holds 68% stake itself is valued at 330-350cr in the unlisted market. This company makes Doors, Particle boards, Putty, Coatings, uPVC windows etc, (home improvement biz). This translates to a valuation of 225-230cr for NCL.
- Deal valuations in cement sector happening at 85-125USD/t Enterprise value – Orient – Adani (116$), India cement 120$, Penna 89$, Kesoram 84$, Sanghi 100$. In comparison, NCL EV/t stands at just 42$ (860m cap+220debt = 1080/3MT), so its a lucrative takeover candidate !
- Power assets – 15mw hydro + 8mw Solar + 7mw waste heat recovery = 25MW portfolio, valued between 150 – 200cr. Captive power meets 25% of their reqt.
- Recently acquired Vishwambar cement for 322acre limestone reserves @16cr , which it would use as captive mines. Also investing 150cr (90cr term loan funded) for 6.6 lakhs cement capacity expansion in Vizag. Currently NCL is operating at 90-95% capacity, with operating margins 10-11%, so the efficiency of the comapny looks decent.
- cement sector as such is not doing good, but deep under valuations, which can be repriced in case of a takeover or IPO of its unlisted subsidiary can unlock value for shareholders.
What happened to the 1863cr door orders?? As far as i could track, they hardly supplied 70-75cr doors in AP Housing project, so what happens to the rest of order?
i dont expect any fantastic growth in NCL, its an event based rationale for value unlocking. Can test investor patience though.
Also, any insights into promoters & corporate governance and any other not so visible aspects of NCL would be highly appreciated !
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