Post on 07-Feb-2018
Prabhat Dairy Ltd BUY
- 1 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
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Target Price ` 220 CMP ` 118 FY19E PE 10.7X
Index Details Prabhat Dairy Ltd (Prabhat) has established itself as a preferred
specialty ingredient supplier to top MNC clientele. Its recent shift to
focus on the B2C segment and introduction of a complete portfolio
of dairy products augurs well for the next leg of growth. The strong
outlook of the organized dairy sector and boost in consumption of
VADP is expected to drive the revenues for the company. Moderate
pricing, aggressive A&P spend (1.4% of revenues) and focus on
increasing distribution reach of B2C products is expected to help
build the brand and drive product reach. Over the period FY16-19, we
expect revenues to grow at a CAGR of 18% to Rs 1,924.6 cr while
earnings are expected to grow at a faster clip (63.7% CAGR) to Rs
107.6 cr.
We Initiate coverage on Prabhat Dairy Ltd as a BUY with a price
objective of Rs 220 representing a potential upside of 86% from the
CMP of Rs 118. At the CMP of Rs 118 the stock is trading at 10.7X its
estimated earnings for FY19. We have assigned a PE multiple of 20X
on FY19 EPS of Rs 11 to arrive at the target price.
We are optimistic about the company’s prospects given that:
India’s dairy industry is expected to maintain growth at a CAGR of
approximately 14.9% between 2015 to 2020, to reach a value of Rs
9,397 billion by 2020 from Rs 4,061 billion clocked in FY14.
Share of the high margin VADP (value added dairy products) is
expected to surge to 36% in FY19 from the existing 25%.
Commissioning of its 30 tpd cheese plant (third highest capacity
in India) is expected to be the growth lever for Prabhat going forth.
We expect Prabhat to generate Rs 104.8 crore of revenues from
cheese by FY19.
In order to downsize its dependence on B2B sales, Prabhat is
constantly ramping up its B2C business over the last couple of
years. Through new product launches and higher A&P spend,
Sensex 27,643
Nifty 8,573
Industry Packaged Foods
Scrip Details
MktCap (` cr) 1,153.6
BVPS (`) 65.7
O/s Shares (Cr) 9.77
AvVol 1,45,942
52 Week H/L 167.5/72
Div Yield (%) 0.3
FVPS (`) 10.0
Shareholding Pattern
Shareholders %
Promoters 44.2
Public 55.8
Total 100.0
Prabhat vs. Sensex
50
70
90
110
130
150
170
20000
22000
24000
26000
28000
30000
Sep
-15
Oct-1
5
No
v-1
5
Dec-1
5
Jan
-16
Feb
-16
Mar-1
6
Ap
r-16
May-1
6
Ju
n-1
6
Ju
l-16
Au
g-1
6
Sep
-16
Sensex Prabhat
Key Financials (` in Cr)
Y/E Mar Net
Sales EBITDA PAT
EPS
(`)
EPS
Growth (%)
RONW
(%)
ROCE
(%)
P/E
(x)
EV/EBITDA
(x)
2016 1,170.5 119.7 24.5 2.5 -31.0 4.9 9.9 47.0 10.9 2017E 1,414.8 150.0 59.3 6.1 141.7 8.7 12.3 19.4 8.6 2018E 1,659.3 187.5 82.6 8.5 39.4 11.2 15.1 13.9 7.0 2019E 1,924.6 221.3 107.6 11.0 30.3 13.3 16.7 10.7 6.0
- 2 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
share of B2C business has risen from 11.3% in FY12 to 30% in
FY16 which is expected to scale upto 44% BY FY19.
Prabhat’s strategy of increasing its penetration in tier II and tier III
cities is a step in the right direction since the presence of top dairy
player in these cities is low. With moderate pricing policy Prabhat
is expected to gain market share at a brisk pace in key markets.
Prabhat has clocked highest EBITDA margins in the dairy space.
With steady monsoon and firm availability of milk, we expect
EBITDA margins to take an upswing 130 bps from 10.2% in FY16 to
11.5% in FY19.
- 3 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Company Background
Prabhat, incorporated in 1998, is an integrated milk and dairy producer with
aggregate milk processing capacity of 1.5 mn litres per day. Over the years,
the company has diversified into pasteurised milk, flavoured milk, sweetened
condensed milk, ultrapasteurised or ultra-high temperature (UHT) milk,
yoghurt, dairy whitener, clarified butter (ghee), milk powder, ingredients for
baby foods, lassi and chaas. It sells these products under retail consumer
brands as well as ingredient products or as co-manufactured products to a
number of institutional and multinational companies. Prabhat commenced
commercial production of cheese, paneer and shrikhand in FY16.
Prabhat’s strong brand portfolio
Source: Prabhat, Ventura Research
- 4 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Key Investment Highlights
Robust sales momentum to continue over FY17-19
Aggressive growth in milk procurement volumes (CAGR 23%) has enabled
Prabhat to grow at robust revenue CAGR of 25% to Rs 1,170 cr over the
period FY12-16. This growth was spearheaded by sales of SMP and
condensed milk products and a higher penetration among institutional
clientele.
Going forth we expect sales to grow at a CAGR of 18% to Rs 1,924.6 cr by FY
19 led by a strong push across new product categories, viz curd, UHT milk,
cheese, panner and shrikhand.
Stepping up the value chain by adding VADP to product arsenal
Prabhat has a impressive list of marquee clients (Mondelez, Heritage,
Britannia, Nestle, Abbot etc) which endorses its manufacturing excellence and
quality assurance. The products primarily supplied to these clients are milk
powder for baby foods and condensed milk.
Post FY13, to reduce its dependence on institutional business and enhance its
B2C business, Prabhat forayed into Value added Dairy Products (VADP) like
Strong sales growth trajectory
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Milk Milk Powders Condensed Milk Butter+Ghee
Curd Ice Cream Flavoured Milk UHT
Cheese Paneer Shrikhand Others
Rs in crore
Source: Prabhat, Ventura Research
- 5 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
ghee, butter and curd. Encouraged by the success of these forays it has now
also introduced paneer, cheese and shrikhand, among others, in FY16.
Capex cycle complete
To support its foray into VADP, the management incurred heavy capex of Rs
273 cr over the period FY14-16. The capex has enhanced capacities for
cheese, paneer and shrikhand which are expected to lift the revenue trajectory
higher going forth.
Entry into cheese paneer and shrikhand key to ramp up the share of
VADP to overall revenues
Cheese: Prabhat, in Q2 FY16, commissioned its 30 tonnes per day (tpd)
cheese plant (third highest capacity in India). The company is currently
targeting the HORECA (hotel, restaurants and cafe) & B2B space which
comprises ~70% of the total cheese consumption in India. This strategy goes
well with management’s blueprint of initially focusing on institutional and B2B
sales, and ultimately launching the same in the B2C segment once the
product gains steady traction. The Cheese segment offers higher gross
margins compared to other dairy products. As the capacity utilization of the
cheese plant gradually increases, it will have a positive impact on the overall
gross margin.
Recently Prabhat received its first export order for the supply of cheddar
cheese to Iraq, while the order is small (~Rs 1 cr), it is significant as it could
open up new revenue streams from geographical expansion.
Surge in gross block driven by aggressive capex in VADP capacity
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
FY12 FY13 FY14 FY15 FY16Gross Block
15%
5%
34%
38%
Rs in crore
Spurt in gross block to drive VADP revenue
growth
Source: Prabhat, Ventura Research
- 6 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Paneer: In order to increase its product offering, Prabhat commissioned a 5
tpd paneer plant in FY16. The company launched paneer in an attractive
thermoform packaging which has extended its shelf-life from 15 to 21 days.
Dahi: Launched Dahi with no preservatives in Mumbai. Adopted a unique
model for distribution of fresh Dahi for the first time in India under the project
called ‘Raftaar’ which delivers fresh Dahi in chilled vans / mopeds with chilled
carrier boxes to 10,000 grocery shops in Mumbai.
Shrikhand: Prabhat started commercial operations of its newly set up 5 tpd
capacity shrikhand plant in Q1 FY17. Products like Paneer, Dahi, Lassi and
Shrikhand are retailed in Modern Trade shelves like Big Bazaar, Star Bazaar,
Hypercity, D Mart etc which provides abundant brand recall for Prabhat.
On the back of the above product launches we expect the share of VADP in
overall revenues to propel from 25% in FY16 to 36% by FY19.
Product mix in FY16
Milk, 20.7%
Milk Powders, 28.5%
Condensed Milk, 23.0%
Butter+Ghee, 21.0%
Curd, 1.6%
Ice Cream, 1.0%
Flavoured Milk, 0.1%
UHT, 1.0%
Cheese Paneer and Shrikhand,
0.2%Others, 3.0%
Source: Prabhat, Ventura Research
Product mix in FY19
Milk, 16.7%
Milk Powders, 23.1%
Condensed Milk, 21.3%
Butter+Ghee, 23.3%
Curd, 2.2%
Ice Cream, 1.3%
Flavoured Milk, 0.3%
UHT, 2.3%
Cheese Paneer and Shrikhand,
7.1% Others, 2.4%
Source: Prabhat, Ventura Research
- 7 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Transformation in business mix on the back of rising share of B2C
to overall revenues
To curtail its dependence on B2B sales, Prabhat has ramped up its B2C
business over the last couple of years. Through new product launches and
higher A&P spends, the share of B2C business has risen from 11.3% in FY12
to 30% in FY16. The Management’s aspiration is to the grow share of B2C to
50% by FY20 through
1. New product launches
2. Focus on Tier II and III cities
3. Moderate pricing policy
4. Increase in A&P spend
These are expected to be the triggers.
Focus on Tier II and Tier III cities key trigger for ramp up in B2C sales
Prabhat’s strategy of focusing on tier II and tier III cities is a step in the right
direction since the presence of top dairy player in these cities is low. Citing this
business opportunity Prabhat launched various value added products like
ghee, curd, paneer, flavoured milk (Flava) in tier II markets.
Transition in product mix in
Milk, 75%
VADP, 25%
FY16
Source: Prabhat, Ventura Research
favour of value added
Milk, 64%
VADP, 36%
FY19
- 8 - Friday, 14th
October, 2016
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Moderate pricing to expedite demand
Prabhat’s products are available at moderate prices as compared to peers,
which gives Prabhat products a competitive edge in the market. For instance,
Prabhat’s pure cow milk ghee is available at Rs 420 per kg as compared to
Patanjali (Rs 490 per kg), Parag’s Govardhan (Rs 460 per kg) and Dynamix
(Rs 435 per kg).
Higher A&P spend to bolster brand recall
Traditionally A&P spend have been lower for Prabhat, since the company was
focusing more on institutional business. Post the launch of B2C business in
FY12, the company has increased its A&P spends to 0.8% of its revenues in
FY16.
We expect the A&P spend to rise to 1.4% of revenues by FY19.
Low pricing strategy to help beat competition
Company Brand
Ghee
(per kg)
UHT milk
(per litre)
Paneer
(per 200 gms)
Dynamix Dynamix 435 NA NA
Patanjali Patanjali 490 NA NA
Mother Dairy Mother Dairy 400 NA 70
Parag Gowardhan, GO 460 65 79
Sagar Sagar 402 NA NA
Prabhat Prabhat 420 50 70
Parsi Parsi 740 NA NA
Amul Amul NA 65 72
Source: Prabhat, Ventura Research
Jump in A&P spend
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
-
5.0
10.0
15.0
20.0
25.0
30.0
FY15 FY16 FY17 FY18 FY19
A&P Spend As a % of sales (RHS)
Rs in crore
Source: Prabhat, Ventura Research
- 9 - Friday, 14th
October, 2016
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Ramp up in distribution network to scale up revenues
Prabhat forayed into B2C in 2012 starting with a single state and 5
distributors. Today the company’s distribution network has grown by leaps and
bounds to 650 distributors in FY16 across 12 states. This is expected to
further scale up to 950 distributors by FY19.
1 State
25 Sales Professionals
5 Distributors
11 State
250 Sales Professionals
650 Distributors
55,000+ Retail Points
FY12 FY16
Changeover in business mix visible
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY15 FY16 FY17 FY18 FY19
B2B B2C
Source: Prabhat, Ventura Research
- 10 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
EBITDA margins set to surge
Despite having a dominant presence in institutional business, Prabhat has
enjoyed the highest EBITDA margins in the dairy space. However due to
drought like conditions over the last two years, average milk procurement
prices shot up. This led to slight pressure on margins which fell from 11.3% in
FY13 to 10.2% in FY16 (reaching a low of 8.5% in Q1 FY17). Nevertheless,
with a steady monsoon, availability of milk will no more be a concern.
We expect EBITDA margins to take an upswing of 130 bps to 11.5% in FY19
led by
1. Increased share of high margin B2C business
2. Increase in capacity utilization across all segments, with blended utilization
rising from 64.3% in FY16 to 88.6% in FY19.
Margin improvement on the cards
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
12.0%
-
50.0
100.0
150.0
200.0
250.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
EBITDA(Excl OI) EBITDA Margin (RHS)
Rs in crore
Source: Prabhat, Ventura Research
- 11 - Friday, 14th
October, 2016
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IPO proceeds to help pare debt
Ahead of its IPO in Septermber 2015, Prabhat had a debt of Rs 412 cr with a
debt to equity of 1.2X. The IPO proceeds of 300 cr and internal accrual helped
Prabhat pare it’s debt by 250 cr in FY16 which lead to an improvement in the
debt to equity ratio to 0.24X in FY16. With major capex complete and cash
flows augmenting, the debt to equity ratio is expected to dip to 0.22X in FY19.
Interest cost to scale down
The Benefit of debt reduction was not visible in FY16 since the IPO proceeds
were received in Q3 and debt reduction accrued in the last quarter.
Steady solvency ratios going forth
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Total Debt Debt to Equity (RHS) Interest Coverage (RHS)
Rs in crore no of days
Source: Prabhat, Ventura Research
Downturn in finance cost
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Rs in crore
Source: Prabhat, Ventura Research
- 12 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Financial Performance
Prabhat reported a mixed set of numbers for Q1 FY17. Consolidated revenues
grew 9% YoY to Rs 293.1 cr in Q1 FY17 mainly driven by the growth in the
B2C business. However EBITDA margins took a hit of 150 bps from 10% in
Q1 FY16 to 8.5% in Q1 FY17 due to
1. higher milk prices (Rs 25.72 from Rs 18.2) and increased milk
procurement efforts
2. Higher employee expenses as the new Cheese, Paneer and Shrikhand
facilities were commissioned
3. Increase in business promotion expenses for B2C sales
PAT jumped 65.4% from Rs 3.7 in Q1 FY16 to Rs 6.1 cr in Q1 FY17 owing to
a slump in finance cost which fell from Rs 13.2 cr in Q1 FY16 to Rs 7.1 cr in
Q1 FY17.
In FY16, the company’s net sales stood at Rs 1,170.5 cr registering a growth
of 16.7% YoY. EBITDA gained 15.2% YoY to Rs 119.2 cr in FY16 against Rs
103.5 crore in FY15. EBITDA margins dropped 10 bps to 10.2% as compared
to 10.3% YoY. Profit after tax fell 5.6% YoY to Rs 24.5 cr due to a 5 fold jump
in provision for tax.
Quarterly Financial Performance (Rs crores)
Description Q1FY17 Q1FY16 FY16 FY15
Net Sales 293.1 268.9 1,170.5 1,003.4
Growth (%) 9.0 16.7
Total expenditure 268.3 241.9 1,051.3 899.9
EBITDA 24.8 27.0 119.2 103.5
Margin (%) 8.5 10.0 10.2 10.3
Depreciation 10.4 8.2 39.9 34.4
EBIT (Ex. OI) 14.4 18.8 79.3 69.1
Non-Operating Income 0.2 0.5 1.5 1.0
EBIT 14.6 19.3 80.8 70.1
Margin (%) 5.0 7.2 6.9 7.0
Finance Cost 7.1 13.2 42.7 41.2
Exceptional Items - - - -
PBT 7.5 6.1 38.1 28.9
Margin (%) 2.5 2.3 3.3 2.9
Provision for Tax 1.4 2.4 13.6 2.9
Profit after Tax 6.1 3.7 24.5 26.0
Margin (%) 2.1 1.4 2.1 2.6
Source: Prabhat, Ventura Research
- 13 - Friday, 14th
October, 2016
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Financial Outlook
The revenue growth trajectory is expected to continue going forward as
Prabhat is boosting its penetration in the B2C business across newer
territories. We expect the brisk pace of growth to be sustained, albeit at a
slightly lower CAGR of 18% to Rs 1,924.6 cr by FY19 mainly driven by strong
presence in the institutional business, new product launches and rising
penetration of VADP products. Consolidated net earnings are expected to
grow at a swift CAGR of 64% from 24.5 crore in FY16 to Rs 107.6 cr in FY19.
The EBITDA and PAT margin are expected to reach to 11.6% and 5.6%
respectively.
Revenue growth trajectory to continue
0%
2%
4%
6%
8%
10%
12%
14%
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Net Sales EBITDA Margin PAT margin
Rs in crore
Source: Prabhat, Ventura Research
Return ratios set to improve
4%
6%
8%
10%
12%
14%
16%
18%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
RoCE RoE
Source: Prabhat, Ventura Research
Steady working capital cycle
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Credit Days Inventory days Debtor Days
no of days
Source: Prabhat, Ventura Research
- 14 - Friday, 14th
October, 2016
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Valuation
We initiate coverage on Prabhat Dairy Ltd as a BUY with a price objective of
Rs 220 representing a potential upside of 86% from the CMP of Rs 118. At the
CMP of Rs 118 the stock is trading at 10.7X its estimated earnings for FY19.
We have assigned a PE multiple of 20X on FY19 EPS of Rs 11 to arrive at the
target price. Despite the low RoE we are assigning a high PE multiple given
the
High earnings growth of 63.7% CAGR over FY16-19
Transition in product mix towards high margin VADP brand portfolio
Margins is expected to regain to 11.6% (Best in class) from 10.2% in
FY16
Substantial reduction in debt is expected to pare interest cost
(* Although we have projections till FY19, we have considered 2 yrs data in the chart for data
symmetry)
Prabhat looks attractively poised*
Heritage
Kwality
Hatsun
ParagPrabhat
10%
15%
20%
25%
30%
35%
40%
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
2 yr Fwd RoE
2 Yr Fwd PEG ratio
Source: Prabhat, Ventura Research
- 15 - Friday, 14th
October, 2016
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Financials and Projections
Y/E March, Fig in ` Cr FY16 FY17E FY18E FY19E Y/E March, Fig in ` Cr FY16 FY17E FY18E FY19E
Profit & Loss Statement Per Share Data (Rs)
Net Sales 1170.5 1414.8 1659.3 1924.6 Adj. EPS 2.5 6.1 8.5 11.0
% Chg. 20.9 17.3 16.0 Cash EPS 6.6 10.7 13.3 16.1
Total Expenditure 1051.3 1264.9 1471.8 1703.2 DPS 0.4 1.0 1.4 1.8
% Chg. 20.3 16.4 15.7 Book Value 65.7 71.9 78.7 87.5
EBDITA 119.2 150.0 187.5 221.3 Capital, Liquidity, Returns Ratio
EBDITA Margin % 10.2 10.6 11.3 11.5 Debt / Equity (x) 0.2 0.2 0.2 0.2
Other Income 1.5 1.4 1.7 1.9 Current Ratio (x) 2.1 2.2 2.2 2.3
PBDIT 120.7 151.4 189.2 223.3 ROE (%) 4.9 8.7 11.2 13.3
Depreciation 39.9 45.1 47.2 49.4 ROCE (%) 9.9 6.5 12.5 16.3
Interest 42.7 19.6 19.9 20.4 Dividend Yield (%) 0.3 0.8 1.1 1.4
Exceptional items 0.0 0.0 0.0 0.0 Valuation Ratio (x)
PBT 38.1 86.7 122.0 153.5 P/E 47.0 19.4 14.0 10.7
Tax Provisions 13.6 27.4 39.4 45.9 P/BV 1.9 1.7 1.6 1.4
Reported PAT 24.5 59.3 82.6 107.6 EV/Sales 1.1 0.9 0.8 0.7
Minority Interest 0.0 0.0 0.0 0.0 EV/EBIDTA 10.9 8.6 7.0 6.0
PAT 24.5 59.3 82.6 107.6 Efficiency Ratio (x)
PAT Margin (%) 2.1 4.2 5.0 5.6 Inventory (days) 27.4 28.5 36.5 43.8
Other opr Exp / Sales (%) 0.0 0.0 0.0 0.0 Debtors (days) 70.6 72.3 73.7 74.8
Tax Rate (%) 35.7 31.6 32.3 29.9 Creditors (days) 19.8 17.7 19.9 21.8
Balance Sheet Cash Flow Statement
Share Capital 97.7 97.7 97.7 97.7 Profit Before Tax 38.1 86.7 122.0 153.5
Reserves & Surplus 557.2 604.7 670.8 757.2 Depreciation 39.9 45.1 47.2 49.4
Minority Interest 0.0 0.0 0.0 0.0 Working Capital Changes -76.9 -68.7 -109.8 -118.3
Long Term Borrowings 38.8 33.8 28.8 25.8 Others 27.6 -6.4 -15.5 -24.1
Deferred Tax Liability 23.6 25.1 29.1 30.4 Operating Cash Flow 28.7 56.6 44.0 60.4
Other Non Current Liabilities 1.4 1.7 2.0 2.3 Capital Expenditure -32.2 -20.5 -22.0 -33.0
Total Liabilities 718.8 762.9 828.4 913.5 Other Investment Activities 7.9 0.4 0.4 0.4
Gross Block 591.5 626.5 646.5 676.5 Cash Flow from Investing -24.3 -20.1 -21.6 -32.6
Less: Acc. Depreciation -161.7 -206.8 -254.0 -303.4 Changes in Share Capital 300.0 0.0 0.0 0.0
Net Block 429.7 419.6 392.4 373.1 Changes in Borrowings -253.2 5.0 10.0 12.0
Capital Work in Progress 24.5 10.0 12.0 15.0 Dividend and Interest -59.8 -31.4 -36.4 -41.6
Non Current Investments 0.1 0.1 0.1 0.1 Cash Flow from Financing -13.0 -26.4 -26.4 -29.6
Net Current Assets 217.3 274.9 351.9 436.3 Net Change in Cash -8.6 10.2 -4.0 -1.8
Long term Loans & Advances 47.2 58.3 72.0 89.0 Opening Cash Balance 20.2 11.7 21.8 17.8
Total Assets 718.8 762.9 828.4 913.5 Closing Cash Balance 11.6 21.8 17.8 16.0
- 16 - Friday, 14th
October, 2016
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Disclosures and Disclaimer Ventura Securities Limited (VSL) is a SEBI registered intermediary offering broking, depository and portfolio management services to clients. VSL is member of BSE, NSE and MCX-SX. VSL is a depository participant of NSDL. VSL states that no disciplinary action whatsoever has been taken by SEBI against it in last five years except administrative warning issued in connection with technical and venial lapses observed while inspection of books of accounts and records. Ventura Commodities Limited, Ventura Guaranty Limited, Ventura Insurance Brokers Limited and Ventura Allied Services Private Limited are associates of VSL. Research Analyst (RA) involved in the preparation of this research report and VSL disclose that neither RA nor VSL nor its associates (i) have any financial interest in the company which is the subject matter of this research report (ii) holds ownership of one percent or more in the securities of subject company (iii) have any material conflict of interest at the time of publication of this research report (iv) have received any compensation from the subject company in the past twelve months (v) have managed or co-managed public offering of securities for the subject company in past twelve months (vi) have received any compensation for investment banking merchant banking or brokerage services from the subject company in the past twelve months (vii) have received any compensation for product or services from the subject company in the past twelve months (viii) have received any compensation or other benefits from the subject company or third party in connection with the research report. RA involved in the preparation of this research report discloses that he / she has not served as an officer, director or employee of the subject company. RA involved in the preparation of this research report and VSL discloses that they have not been engaged in the market making activity for the subject company. Our sales people, dealers, traders and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. We may have earlier issued or may issue in future reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing this document, you should be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. We may rely on information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or affiliates of VSL. This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information of the clients / prospective clients of VSL. VSL will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of clients / prospective clients. Similarly, this document does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities discussed in this report may not be suitable for all investors. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for his/ her/their particular circumstances and, if necessary, seek professional/financial advice. And such person shall be responsible for conducting his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently of the Company. These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accepted accounting principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by VSL, its associates, the authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such projections and forecasts. The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. We do not provide tax advice to our clients, and all investors are strongly advised to consult regarding any potential investment. VSL, the RA involved in the preparation of this research report and its associates accept no liabilities for any loss or damage of any kind arising out of the use of this report. This report/document has been prepared by VSL, based upon information available to the public and sources, believed to be reliable. No representation or warranty, express or implied is made that it is accurate or complete. VSL has reviewed the report and, in so far as it includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change. This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to the public used by the public media without the express written consent of VSL. This report or any portion hereof may not be printed, sold or distributed without the written consent of VSL. This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of VSL and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and Exchange Board of India before investing in Securities Market. Ventura Securities Limited
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