@Rajesh_R At full capacity omnichem joint venture will create 550 crores...probably in FY18 or FY19 which will be more than 20% and will contribute significantly to profit as margins are likely to be better. One reference is below.
http://fundamental-picks.in/2015/08/granules-india-ltd-a-healthy-wealthy-particle/
You can also refer to various research reports.
Posts tagged Value Pickr
Granules India Ltd (14-10-2015)
NCL Industries – Resumption of growth? (14-10-2015)
FY15 EBIT for board business was 30% of overall EBIT. Revenue was 15%+ of total revenue for FY15. This business has been growing at more than 20% with margins of 17% odd.
I had also read in ET that this business can be valued at 150-175 Crs.
Even if we value this business at 150 Crs and deduct the same from current mkt cap of 467 Crs. then the residual business is still available at 317 Crs. or EV of 455 Crs. (If I don't allocate any debt towards board business) or EV/EBITDA (FY16-arrived at by extrapolating FY16Q1 nos. This might be naive and too layman but I think safe assumption as capacity utilisation will go up and prices may hold) of 4.6-4.8 times or EV/Tonne of 38-40 US$ odd, which I think is still not expensive, considering that the cement business has good earnings visibility and better times ahead.
Figures are approximations.
Discl: Invested & maybe biased.
Granules India Ltd (14-10-2015)
Hi Amit, Omnichem JV will contribute around Rs. 250 crs to GI's top line. By the time this JV is fully operational it could as be an addition of just 10% of sales. Not huge but definitely helps.
Disc: Invested.
Torrent Pharma Ltd (14-10-2015)
Hi Hitesh, Firstly, I would like to thank you for sharing your knowledge and wisdom. I also follow you on twitter.
I have question about TP's abilify sales for 2017 on wards. Since Abilify is a sticky drug - is it possible that Torrent will do similar sales (let's say they do $200 million in 2016) in next few years?
Astral polytechnik ltd (14-10-2015)
Sumir Chadha of WestBridge Capital summarises the business and rationale for investment in Astral. They had invested in Astral in March 2012 when market cap was sub 500 crore and today it is more than 5000 crore (they have partially exited this year)
Astral – impenetrable moat:
One of the things we loved about Astral was that when we spoke to plumbers in India – our team went and spoke to 1,000 plumbers across the country -they said they loved Astral. Because over a decade Astral has gone out and reached out to them, built the brand and these are the decision makers. So, when we get the pipes replaced in our house, none of us know which pipe is going inside our house, except for the plumber. So, Astral built this very powerful brand in India. That is why they were able to grow 40% a year for eight years in a row. They could scale the business beautifully. It is very hard for a competitor to come tomorrow and change all these plumbers minds. Because over many years they have built a lot of comfort with the brand, it is reliable and very high quality. If a company has a long term competitive advantage like that, it can win in the market place and make money for our investors.
Granules India Ltd (14-10-2015)
Other trigger points for Granules is the acquistion Auctus & the collabration with Omnichem slated to start contributing towards EPS & margin enhancement from next year.
V-Mart Retail Ltd (14-10-2015)
@seshukumar - retail is an extremely tough business with limited or no barriers to entry..in India real estate costs are prohibitive which have led to a fall of many retailers due to over aggressiveness.,.
The bet here is on the managements flawless execution of a differentiated strategy to focus on aspirational markets where larger players have limited presence and are unlikely to focus in near future. Even in a tough consumer demand scenario (last five years) where growth for retailers has been tepid, management has shown great perseverance and grown profitably with no debt.
There are of course multiple variables that need to be tracked such as same store sales growth, debt, inventory etc.
Shipping Corporation Ltd- This Ship may Fly! (14-10-2015)
Good news for indian shipping industry.
Welspun India – most vertically integrated textile co (14-10-2015)
Welspun eyes 150% jump in textiles sales at $2.5 bn by 2020
Direct online presence in a developed market like US would definitely boost the margins further.
Hitesh portfolio (14-10-2015)
@prabhu shankar, Regarding valuations during bubbles, one only has to look back a few years to see what kind of valuations sectoral companies in bubble phase command. e.g software before the dotcom bust or construction and real estate companies before the 2008 crash and so on. And how long it can go on also is a difficult thing to guess. But for most pharma companies esp those exposed to US markets there is a lot of tailwind with currency depreciation, patent expiry and cheap cost of production being advantageous to Indian companies. So the music might continue to keep playing.
@amitayu, I had a look at Marksans earlier but managed to give it a miss. But the overall impression and feel about the company was quite good. But with the run up, valuations need to be considered.