madhucon projects
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Please refer to important disclosures at the end of this report 1
Y/E March (` cr) 1QFY12 1QFY11 4QFY11 % chg (yoy) % chg (qoq)Net sales 329.2 407.4 593.4 (19.2) (44.5)Operating profit 46.3 43.5 62.6 6.5 (26.0)
Net profit 8.0 13.5 19.3 (40.8) (58.7)Source: Company, Angel Research
For 1QFY2012, Madhucon Projects (MPL) reported a disappointing performance
mainly on account of lower revenue booking on the road segment. MPLs order
book at 3.5x FY2011 revenue provides good revenue visibility. However, we are
revising our numbers for FY2012 and FY2013 to factor in the lower top-line
growth and higher interest outgo. Nevertheless, given the sharp price decline,we upgrade the stock to Buy from Accumulate.Revenue disappoints, likely to miss the revised revenue guidance: MPL reportedbelow-expectation top-line of `329.2cr, down 19.2% yoy, against our
expectations of `481cr. This was mainly on account of lower revenue booking of
`120cr150cr in its captive BOT projects. Further, management has guided for
revenue of `2,000cr for the year (our earlier revenue estimates) from its earlier
guidance of `2,250cr; however, we believe that would require a lot of catching
up, given early monsoons and a bleak order inflow scenario. Hence, we are
factoring in lower numbers. OPM for the quarter stood at 14.1% (10.7%), posting
a whopping jump of 340bp yoy against our flat expectations. Management has
guided for normalised OPM of 1112% for the year as a whole. On the earnings
front, the company posted a 40.8% yoy decline to `7.9cr against our expectation
of a 12.7% decline.
Outlook and valuation Raising of capital is the key catalyst: We believe keytriggers to watch out for MPL should be pick-up in execution in the development
business and raising money. However, these plans would fructify somewhere in
2HFY2012 only and will be based on the market conditions prevailing then.
Hence, we believe until then the stock would be a sector performer and real value
would be created only on unlocking at the subsidiary level. We have valued MPL
on an SOTP basis to arrive at a target price of `106/share and recommend Buy,
with a 22.7% potential upside from current levels.
Key financials (Standalone)
Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales (incl op. income) 1,388 1,705 1,898 2,434% chg 35.4 22.8 11.4 28.2
Adj. net profit 45.8 51.0 49.9 61.9% chg (2.4) 11.5 (2.2) 24.1
FDEPS (`) 6.2 6.9 6.7 8.4EBITDA margin (%) 9.8 10.9 10.7 10.4
P/E (x) 14.1 12.6 12.9 10.4
RoAE (%) 8.2 8.5 7.7 8.9
RoACE (%) 9.0 10.6 9.0 9.1P/BV (x) 1.1 1.0 1.0 0.9
EV/Sales (x) 0.8 0.9 0.8 0.8
EV/EBITDA (x) 8.1 8.0 7.6 7.7
Source: Company, Angel Research
BUYCMP `87
Target Price `106
Investment Period 12 Months
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 57.7
MF / Banks / Indian Fls 21.6
FII / NRIs / OCBs 11.2
Indian Public / Others 9.6
Abs. (%) 3m 1yr 3yr
Sensex (4.9) 1.1 31.9
MPL (19.4) (43.7) (59.3)
1
18,1975,482
MAPR.BO
MDHPJ@IN
642
0.57
169.0/77.5
18,795
Infrastructure
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
Face Value (`)
BSE SensexNifty
Reuters Code
Shailesh Kanani022-39357800 Ext: 6829
shailesh.kanani@angelbroking.com
Nitin Arora022-39357800 Ext: 6842
nitin.arora@angelbroking.com
Madhucon ProjectsPerformance Highlights
1QFY2012 Result Update | Infrastructure
July 29, 2011
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Madhucon Projects |1QFY2012 Result Update
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Exhibit 1:Quarterly performance (Standalone)
Y/E March (` cr) 1QFY12 1QFY11 4QFY11 % Chg (yoy) % Chg (qoq) FY2011 FY2010 % ChgNet sales 329.2 407.4 593.4 (19.2) (44.5) 1704.6 1388.3 22.8Total expenditure 282.9 363.9 530.8 (22.3) (46.7) 1519.6 1252.9 21.3Operating profit 46.3 43.5 62.6 6.5 (26.0) 185.0 135.4 36.6OPM (%) 14.1 10.7 10.6 340bp 350bp 10.9 9.8 110bp
Interest 20.7 10.3 24.5 101.4 (15.7) 61.8 25.1 145.9
Depreciation 12.3 11.9 11.8 2.6 3.7 47.5 46.4 2.2
Non operating income 0.6 0.3 3.4 112.8 (83.4) 5.3 5.6 (4.9)
Nonrecurring items 0.0 0.0 0.0 - - 0.0 0.0 -
Profit before tax 13.9 21.5 29.7 (35.3) (53.0) 81.1 69.4 16.7Tax 6.0 8.1 10.4 (26.2) (42.4) 30.0 23.7 26.9
Reported net profit 8.0 13.5 19.3 (40.8) (58.7) 51.0 45.8 11.4PAT (%) 2.4 3.3 3.3 (90)bp (90)bp 3.0 3.3 (30)bp
Reported EPS (`) 1.1 1.8 2.6 (40.8) (58.7) 6.9 6.2 11.4Source: Company, Angel Research
Revenue disappoints, likely to miss the revised revenue guidance: MPL reportedbelow-expectation top line of `329.2cr, down 19.2% yoy, against our expectation
of `481cr. This was mainly on account of lower revenue booking of `120cr150cr
in its captive BOT projects. Further, management has guided for revenue of
`2,000cr for the year (our earlier revenue estimates) from the earlier guidance of
`2,250cr but we believe that would require a lot of catching up given the early
monsoons and a bleak order inflow scenario. Hence, we are factoring in lower
numbers.
On the BOT front, four operational projects witnessed a toll collection of
`50lakh/day, which is broadly in-line with our estimates. Management has
indicated that there are chances of improvement in two collections post monsoons.
Exhibit 2:First blip in many quarters on the top line
Source: Company, Angel Research
Exhibit 3:1QFY2012 revenue break-up (` cr)
Source: Company, Angel Research
53.1
13.0
38.8
18.8
4.9
23.3
49.243.0
38.0
25.622.0
(19.2)
(30.0)
(20.0)
(10.0)
-10.0
20.0
30.0
40.0
50.0
60.0
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
Sales (` cr, LHS) Growth (yoy %, RHS)
110
189
6 220 2
Roads Power Irrigation Real Estate M ining Others
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Madhucon Projects |1QFY2012 Result Update
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Earnings under pressure: OPM stood at 14.1% (10.7%), posting a whopping jumpof 340bp yoy against our flat expectations. Management has guided for
normalised EBITDAM of 1112% for the year as a whole. On the earnings front,
the company posted a 40.8% yoy decline to`
7.9cr against our expectation of a12.7% decline.
Exhibit 4:Stable EBITDAM expected going ahead
Source: Company, Angel Research
Exhibit 5:PATM under pressure
Source: Company, Angel Research
Soaring debt levels Increase in interest cost A major concern: MPL hasinvested heavily in its asset-owning business for the last few years, resulting in
increased debt levels. Higher debt levels and interest rates have led to a 5.9% qoq
hike in interest cost, which we believe is a major concern for the stock. Further,
given the companys expansion plans, there seems to be no respite on the debtfront as per our calculations. The only saviour could be access to capital markets,
which is under the initial stages of planning, via IPO/stake sale etc. We have
highlighted before as well in our notes that increasing debt levels and the resulting
increase in interest outlay are eating away profits from the standalone business.
Therefore, we believe early raising of funds is the key to the stocks performance
going ahead.
Exhibit 6:Rising interest cost a cause of concern
Source: Company, Angel Research
Exhibit 7:Rising debt levels with no respite in sight
Source: Company, Angel Research
16.6
10.3
7.4
12.511.2
12.4
6.4
10.79.7
12.7
10.6
14.1
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
EBITDA (` cr, LHS) EBITDAM (%, RHS)
5.3
6.1
2.4
4.6 4.7
3.9
1.4
3.3
1.9
3.3 3.3
2.4
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
-
5.0
10.0
15.0
20.0
25.0
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
PAT (` cr, LHS) PATM (%, RHS)
24.9
(56.9)
22.4
108.0
(33.0)
51.9
15.131.0
13.3
31.9 27.2
5.9
(80.0)
(60.0)
(40.0)
(20.0)
-
20.0
40.0
60.080.0
100.0
120.0
0.0
5.0
10.0
15.0
20.0
25.0
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
Interst cost (` cr) qoq growth
0.2
0.4
0.8
1.3 1.3
1.8
-
0.5
1.0
1.5
2.0
-
50.0
100.0
150.0
200.0
250.0
300.0
F Y2008 FY2009 FY2010 F Y2011E FY2012E F Y2013E
Increase in Inv. WC cycle (e x-cash) (days) Net debt to e quity
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Order book analysis ~50% of the order book is slow
moving/pending financial closure
MPLs order book, as of 1QFY2012, stood at `5,966cr (3.5x FY2011 revenue),
which was dominated by the roads (46.7%) and power (42.2%) segments. The
balance was contributed by the irrigation, real estate and mining segments.
We believe ~50% of MPLs orders are either slow-moving (irrigation projects) or
pending financial closure (Ranchi Jamshedpur and Barsasat Krishnagar projects),
thus they would take time to start contributing to revenue. Also, funding and
overall liquidity will play a big role in MPLs growth, as ~90% of the orders are
in-house orders.
Exhibit 8:Sector-wise order backlog (`cr)
Source: Company, Angel Research
Exhibit 9:Client-wise order backlog (` cr)
Source: Company, Angel Research
Exhibit 10:Change in estimates to factor in lower operating margin and higher interest outgoFY2012E FY2013E
Earlier estimates Revised estimates Variation (%) Earlier estimates Revised estimates Variation (%)Revenue (`cr) 2,068.8 1,898.4 (8.2) 2,631.5 2,433.7 (7.5)
EBITDA margin (%) 10.2 10.7 50bp 10.3 10.4 10bp
PAT (`cr) 59.5 49.9 (16.1) 70.6 61.9 (12.3)
Source: Company, Angel Research
2,786
2,518
202 275 186
Roads
Power
Irrigation
Real Estate
Mining & others
202 186
5,579
Government
Private
Captive
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Madhucon Projects |1QFY2012 Result Update
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Outlook and valuation
Raising of capital The key catalyst
We believe the key triggers to watch out for MPL should be the pick-up in executionin the development business and building of an attractive asset portfolio to raise
money. However, these plans would fructify somewhere in 2HFY2012 only and will
be based on the market conditions prevailing then. Hence, we believe until then
the stock would be a sector performer and real value would be created only on
unlocking at the subsidiary level.
We have valued MPL at 2030% discount to its larger peers, including NCC, IVRCL
and HCC, given its scale of operations, high leverage on the balance sheet,
consistent delays in expansion plans and high dependence on captive orders for its
core construction growth. Based on the SOTP methodology, we have assigned P/E
of 7x on FY2013E earnings (`58.6/share) and valued the BOT projects on NPVbasis (`45.0/share) and other investments in Madhucon Infra and the real estate
venture on BV basis (`12.2/share and `2.0/share, respectively). Thus,our revisedtarget price stands at `106/share (`117/share).
Exhibit 11:Derivation of SOTP-based target price for MPL (FY2013E)
Business segment Methodology Remarks ` cr `/share % to TPMPL- Parent P/E 7x FY2013E Earnings 433.5 58.6 55.5Madhucon Infra. 400.6 45.0 42.6
Agra Jaipur NPV CoE -14%, Traffic and Toll increase 3% and 4% respectively 129.7 17.5 16.6
TN (DK) Exp NPV CoE -14%, Traffic and Toll increase 3% and 4% respectively 35.9 4.9 4.6
Trichy Thanjavur NPV CoE -14%, Traffic and Toll increase 4% and 5% respectively 6.4 0.9 0.8
Madhurai Tuticorin NPV CoE -14%, Traffic and Toll increase 3% and 4% respectively 71.0 9.6 9.1
Simhapuri Energy Investment 0.5x of investments 135.0 9.1 8.6
Coal Venture Investment 0.5x of investments 22.5 3.0 2.9
Real estate 9acres at Kukatpally 0.5x of investments 14.5 2.0 1.9Total 1,249.1 105.5 100.0
Source: Company, Angel Research
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Exhibit 12:BOT We have been conservative in our estimates, given the assets have not witnessed traffic flow asexpected and are marred by delays, which are impacting the IRRs of the projects
BOT project Agra Jaipur TN (DK) Exp Trichy Thanjavur Madhurai TuticorinType Toll Toll Toll Toll
Status Oper. Oper. Oper Oper
KM 57 73 56 126
Issuing Auth. NHAI NHAI NHAI NHAI
State Rajasthan TN Pondicherry & TN TN
Concession (yrs.) 25 20 20 20
CoD May-09 Nov-09 June-11 June-11
TPC (`cr) 326.7 375.5 390.0 920.0
Debt (`cr) 198.5 224.0 260.4 594.4
Equity (`cr) 99.4 74.7 64.7 173.7
Grant (upfront and maintenance) (`
cr) 96.0 86.0 78.4 144.0Expected traffic growth (%) 3.0 3.0 4.0 3.0
Expected toll inc (%) 4.0 4.0 5.0 4.0
Interest rate (%) 10.5 9.8 9.8 9.8
NPV (`cr) 129.7 35.9 6.4 71.0
Implied P/BV FY13E 1.0 0.2 0.1 0.3
Source: Company, Angel Research
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Investment arguments
Robust order book: As of 1QFY2012, MPL had an order book `5,966cr, spreadacross the power, highway and irrigation segments. In recent times, the companys
order book witnessed traction in the road segment via winning of BOT projects.
Further, with escalating activity at the NHAI level, we expect MPL to further win
projects and add to its already burgeoning order book.
FY2011 was a project-completion year: MPL has invested heavily (nearly 40% ofbalance sheet) over the years in its asset-owning arm, Madhucon Infra, which is all
set to generate returns. Further, the company is expecting completion of its first
power project (300MW) by 2QFY2012 end. However, we have factored in a
six-month delay in the project. On the coal mining front too, the company has
guided that FY2012 would see offtake of nearly 0.5mn tonnes of coal production,
which has also not been factored in by us, given consistent delays in the same.
Value unlocking at the subsidiary level A key to enhance value: We believe MPLhas a decent portfolio of road BOT assets (4 operational + 3 under development),
power projects (300MWx2 under development) and coal mining projects, which
have latent potential. However, we believe faster execution and value unlocking
would enhance value. We expect the company to access the capital markets in
1HCY2012, when it would have reached more milestones and enhanced its asset
visibility. Therefore, in the short to medium term, the stock would continue to be a
sector performer.
Key concerns
Dependability on capital markets for equity: MPL has plans to raise money frommarkets to fund its asset-expansion spree. In case MPL is unsuccessful in doing so,
it may face delays, which will negatively impact the IRRs of the companys projects.Rising commodity prices: MPL has high proportion of captive road BOT projects,which are fixed-price contracts. In such contracts, some price escalations can be
factored in; however, the company may face risk of margin erosion if commodity
prices increase beyond estimates.
Awarding from NHAI: Slowdown in awarding activity by NHAI would hit orderinflow for road-focused players such as MPL.
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Exhibit 13:Recommendation summary
Company CMP TP Rating Top line (` cr) EPS (`) Adj. P/E OB/FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales
CCCL 28 - Neutral 2,199 2,362 2,646 9.7 2.5 1.5 3.6 18.4 10.9 18.4 7.8 2.8HCC 30 - Neutral 4,093 4,723 5,485 15.8 1.2 0.7 1.2 1.0 0.5 0.8 0.5 4.2
IRB Infra 174 191 Accu. 2,438 2,999 3,995 28.0 13.6 12.7 14.5 3.3 6.8 7.3 6.4 -
IVRCL 62 100 Buy 5,651 6,275 7,494 15.2 5.9 6.2 8.2 17.5 6.0 5.7 4.3 4.2
JP Assoc. 67 108 Buy 13,217 15,860 18,708 19.0 3.1 5.1 6.8 48.8 21.7 13.0 9.8 -
Punj Lloyd 70 - Neutral 8,166 9,585 10,992 16.0 (1.5) 3.7 5.9 - - 19.1 11.9 2.8
NCC 73 109 Buy 5,074 5,856 6,939 16.9 6.4 5.9 7.3 6.9 6.2 6.7 5.5 3.2
Sadbhav 143 161 Accu. 2,209 2,602 2,865 13.9 8.0 8.4 9.7 10.3 8.7 8.2 7.1 3.2
Simplex In. 300 404 Buy 4,896 5,373 6,721 17.2 25.1 24.1 36.7 21.0 12.0 12.5 8.2 3.0
Patel Engg 135 - Neutral 3,499 3,272 3,587 1.2 18.4 15.5 23.0 11.8 2.9 3.5 2.3 2.7
Madhucon 87 106 Buy 1,705 1,898 2,434 19.5 6.9 6.7 8.4 10.2 5.8 5.9 4.8 3.5L&T 1,726 2,030 Buy 44,265 56,137 66,161 22.3 58.2 68.3 82.5 19.0 21.7 18.5 15.3 3.0
ITNL 210 308 Buy 4,049 4,908 6,467 26.4 22.3 25.0 26.1 8.1 1.7 1.5 1.4 5.5
Source: Company, Angel Research
Exhibit 14:SOTP break-up
Company Core Const. Real Estate Road BOT Invst. In Subsidiaries Others Total` % to TP ` % to TP ` % to TP ` % to TP ` % to TP `
CCCL 28 100 - - - - - - - - 28
HCC 11 26 23 58 6 16 - - - - 40
IRB Infra 110 58 - - 77 40 5 2 - - 191
IVRCL 74 73 - - - - 27 27 - - 100
JP Assoc. 32 30 31 29 - - - - 44 41 108
Punj Lloyd 96 100 - - - - - - - - 96
NCC 76 70 2 2 8 8 - - 23 21 109
Sadbhav 87 54 - - 73 46 - - - - 161
Simplex In. 404 100 - - - - - - - - 404
Patel Engg 61 43 47 33 16 11 - - 19 14 143
Madhucon 59 55 2 2 33 31 - - 12 12 106L&T 1,567 77 - - - - 463 23 - - 2,030
ITNL 136 44 - - 148 48 - - 24 8 308
Source: Company, Angel Research
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Profit & loss statement (Standalone)
Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ENet Sales 738 1,025 1,388 1,705 1,898 2,434Other operating income - - - - - -Total operating income 738 1,025 1,388 1,705 1,898 2,434% chg 44.7 38.9 35.4 22.8 11.4 28.2
Total Expenditure 631 901 1,253 1,520 1,696 2,181
Net Raw Materials 504 706 1,022 1,191 1,321 1,704
Other Mfg costs 73 118 135 201 228 295
Personnel 27 46 50 70 82 100
Other 27 31 47 58 64 83
EBITDA 107 124 135 185 203 253% chg 28.4 15.5 9.2 36.6 9.6 24.7
(% of Net Sales) 14.5 12.1 9.8 10.9 10.7 10.4
Depreciation& Amortisation 34 43 46 47 52 65
EBIT 73 81 89 138 151 188% chg 25.9 9.9 10.4 54.6 9.4 24.6
(% of Net Sales) 9.9 7.9 6.4 8.1 7.9 7.7
Interest & other Charges 16 27 25 62 81 100
Other Inc. (incl pft from Ass/JV) 12.6 19.1 5.6 5.3 5.9 6.4
(% of PBT) 18.2 26.1 8.1 6.6 7.7 6.9
Recurring PBT 70 73 69 81 76 94% chg 5.4 5.2 (5.0) 16.7 (6.7) 24.1
Extraordinary Expense/(Inc.) - - - - - -
PBT (reported) 70 73 69 81 76 94Tax 18 26 24 30 26 32
(% of PBT) 25.4 35.6 34.1 37.1 34.0 34.0
PAT (reported) 52 47 46 51 50 62 Add: Share of earnings of asso. - - - - - -
Less: Minority interest (MI) - - - - - -
Prior period items - - - - - -
PAT after MI (reported) 52 47 46 51 50 62ADJ. PAT 47 47 46 51 50 62% chg 13.7 (0.7) (2.4) 11.5 (2.2) 24.1
(% of Net Sales) 6.4 4.6 3.3 3.0 2.6 2.5Basic EPS (`) (Reported) 7.0 6.4 6.2 6.9 6.7 8.4Fully Diluted EPS ( ) 6.4 6.3 6.2 6.9 6.7 8.4% chg 13.7 (0.7) (2.4) 11.5 (2.2) 24.1
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Balance sheet (Standalone)
Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ESOURCES OF FUNDSEquity Share Capital 7 7 7 7 7 7
Preference Capital - - - - - -
Reserves& Surplus 485 529 571 618 663 721
Shareholders Funds 493 536 578 625 671 729Minority Interest - - - - - -Total Loans 196 320 513 855 1,172 1,510
Deferred Tax Liability 12 12 10 10 10 10
Total Liabilities 701 868 1,101 1,491 1,853 2,249APPLICATION OF FUNDSGross Block 379 462 491 508 548 618
Less: Acc. Depreciation 131 173 218 265 317 383Net Block 248 288 273 242 230 235Capital Work-in-Progress - - - - - -
Investments 300 373 639 741 852 1,022Current Assets 709 715 753 1,412 1,881 2,323Inventories 114 52 75 195 217 253
Sundry Debtors 92 88 124 560 655 882
Cash 102 85 55 26 271 195
Loans & Advances 401 491 498 631 738 993
Other - - - - - -
Current liabilities 555 508 563 904 1,110 1,331Net Current Assets 153 207 189 508 771 992Misc. Exp. not written off - - - - - -
Total Assets 701 868 1,101 1,491 1,853 2,249
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Key RatiosY/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EValuation Ratio (x)P/E (on FDEPS) 13.6 13.7 14.1 12.6 12.9 10.4P/CEPS 7.9 7.1 7.0 6.5 6.3 5.1
P/BV 1.3 1.2 1.1 1.0 1.0 0.9
Dividend yield (%) 0.7 0.9 0.5 0.6 0.6 0.6
EV/Sales 1.0 0.9 0.8 0.9 0.8 0.8
EV/EBITDA 6.9 7.1 8.1 8.0 7.6 7.7
EV / Total Assets 1.1 1.0 1.0 1.0 0.8 0.9
Per Share Data (`)EPS (Basic) 7.0 6.4 6.2 6.9 6.7 8.4
EPS (fully diluted) 6.4 6.3 6.2 6.9 6.7 8.4
Cash EPS 11.0 12.2 12.5 13.3 13.8 17.2
DPS 0.6 0.8 0.4 0.5 0.5 0.5
Book Value 66.5 72.4 78.1 84.4 90.6 98.4
DuPont AnalysisEBIT margin 9.9 7.9 6.4 8.1 7.9 7.7
Tax retention ratio 0.7 0.6 0.7 0.6 0.7 0.7
Asset turnover (x) 1.3 1.5 1.5 1.4 1.2 1.3
ROIC (Post-tax) 9.8 7.5 6.4 6.9 6.5 6.8
Cost of Debt (Post Tax) 6.2 6.6 4.0 5.7 5.3 4.9
Leverage (x) 0.2 0.3 0.6 1.1 1.3 1.6
Operating ROE 10.4 7.8 7.9 8.2 8.2 9.8
Returns (%)ROACE (Pre-tax) 10.8 10.3 9.0 10.6 9.0 9.1
Angel ROIC (Pre-tax) 13.1 11.7 9.7 11.0 9.9 10.3
ROAE 10.0 9.1 8.2 8.5 7.7 8.9
Turnover ratios (x) Asset Turnover (Gross Block) 2.2 2.4 2.9 3.4 3.6 4.2
Inventory / Sales (days) 46 29 17 29 40 35
Receivables (days) 59 32 28 73 117 115
Loans and Advances (days) 154 159 130 121 132 130
Payables (days) 215 180 133 146 177 168
W.cap cycle (ex-cash) (days) 36 31 34 66 94 97Solvency ratios (x)Net debt to equity 0.2 0.4 0.8 1.3 1.3 1.8
Net debt to EBITDA 0.9 1.9 3.4 4.5 4.4 5.2
Interest Coverage 4.5 3.0 3.5 2.2 1.9 1.9
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Madhucon Projects |1QFY2012 Result Update
J l 29 2011 13
Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www. angelbroking.com
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trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
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Disclosure of Interest Statement Madhucon Projects
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)
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