Orbit Corporation Ltd

Transcription

1 Orbit Corporation Ltd 1 st June, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 31 st May, 2016) NSE Code ORBITCORP NSE Market Price ( ) 5.55 NSE Market Cap. ( Cr.) Sector Realty Face Value ( ) Equity ( Cr.) week High/Low ( ) 11.50/5.10 Net worth ( Cr.) Business Group Indian Private TTM P/E N.A. Traded Volume (Shares) 17,164 Year of Incorporation 2000 TTM P/BV 0.01 Traded Volume (lacs) 0.95 Corporate Office: The View, 1 st Floor, 165, Dr. Annie Besant Road, Worli, Mumbai , Maharashtra Company Website: TABLE 2 PRICE PERFORMANCE Source Capitaline COMPANY BACKGROUND Orbit Corporation Limited (OCL), an ISO 9001:2000 certified company was incorporated on 7 th March 2000 as a public limited in the name and style of Orbit Cybertech Limited. It is an India based real estate construction and development company, which works under the projects in two main divisions, high end residential and commercial properties. It focuses primarily on the re development of existing properties at prime location in Island city of Mumbai. Orbit has also concentrates Beach front properties in Mumbai. Some landmark projects of the company include Shivam, Orbit Heights, Orbit Eternia, Orbit Enclave, Orbit Arya, Hafeez Contractor House, Villa Orb, Orbit Haven, Orbit View, Orbit Grand, Orbit Plaza and JSW House. 31 st May, th May, th May, 2014 % Change CAGR for vs vs 2014 years Price ( ) % 41.98% 45.52% Trading Volume (Shares) (yearly avg.) 2,42,591 10,47,545 5,31, % 97.17% NSE Market Cap. (in Cr.) % 41.98% 45.52% Source Money Control 1 P AGE

2 TABLE 3 FINANCIALS ( Cr.) % Change CAGR for 2 years 2015 vs vs 2013 Net Worth % 15.79% 14.40% Current Assets 1, , , % 2.92% 4.49% Non Current Assets % 4.54% 12.32% Total Assets 2, , , % 0.23% 2.26% Investments , % 8.43% 12.66% Finance Cost % 18.97% 7.37% Long Term Liabilities % 27.74% 20.29% Current Liabilities 1, , % 37.10% 20.00% Turnover % 86.18% 25.78% Profit After Tax (PAT Cr.) N.A. N.A. N.A. EPS ( ) N.A. NA N.A. Source Money Control/Annual Report Discussion as per Company: In the Annual Report for the FY the Company has mentioned that Financial year saw an abnormal dip in revenues due to various reasons viz. activity was meagre in view of new DCR regulations and slow approvals, no new launches of projects, higher input / finance cost aggravated the problems and relatively lower sales prices coupled with abnormal events in the form of revenue write offs affected the EBIDTA / PAT margins substantially. 2 P AGE

3 AUDIT QUALIFICATIONS Audit Qualifications in last 3 years: The Auditors have made qualified opinion on following matters in annual Report for FY However, they have raised emphasis on similar matters in last two years. We draw attention to Note 26(2(a)) (Refer pg. 70 of Annual Report for FY ) to the financial statements as regards the income tax demands received by the Company for the assessment years to amounting to ` crore. The Company has filed appeals against these demands and the matter is sub judice. The Auditors opinion is not qualified in respect of this matter. Management Response: The management has not responded to the above mentioned qualifications. Response Frequency of Qualifications Have the auditors made any adverse remark in last 3 years? Are the material accounts audited by the Principal Auditors? Do the financial statements include material unaudited financial statements? TABLE 4: BOARD PROFILE (As on 31 st March, 2015) Comment Only once, However, the Auditors have raised emphasis on similar matters every year from 31 st March, No Yes No Regulatory Norms Comment % of Independent Directors on the Board 50% 50% % of Promoter Directors on the Board 50% Number of Women Directors on the Board At least 1 1 Classification of Chairman of the Board Executive Promoter Director Is the post of Chairman and MD/CEO held by the same person? No Average attendance of Directors in the Board meetings (%) 81.25% Source Money Control/Annual Report Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50% Independent Directors as the Chairman of the Board is a Promoter Executive Director. The Company as on 31 st March, 2015 has 50 % of Independent Directors and hence, it meets the regulatory requirements. Board Diversity: The Company has 4 directors out of which 3 are male and 1 is female. The Company is compliant as per Clause 17 of the Listing Regulations, 2015 regarding the requirement of at least one woman director. 3 P AGE

4 STAKEHOLDERS EMPOWERMENT SERVICES TABLE 5 FINANCIAL RATIOS Ratios Turnover Ratios Return Ratios Liquidity Ratios Solvency Ratios Trading Ratios 2015 vs 2014 % Change 2014 vs 2013 Inventory Turnover % 86.46% Debtors Turnover % 80.32% Fixed asset Turnover % 85.52% Current Asset Turnover % 86.57% Operating Profit Margin 70.51% % 9.59% N.A. N.A. Net Profit Margin 88.45% % 2.01% N.A. N.A. Return on Assets (ROA) 4.86% 6.77% 0.19% N.A. N.A. Return on Equity (ROE) 14.87% 18.81% 0.45% N.A. N.A. Return on Capital Employed (ROCE) 13.91% N.A % N.A. N.A. Current Ratio % 24.93% Quick Ratio % 24.43% Cash Ratio % 97.86% Working Capital Turnover ratio % 73.36% Debt to equity ratio % 51.23% Interest Coverage Ratio 0.49 N.A N.A. N.A. Market Cap / Sales % % Market Cap/ Net Worth % 18.75% Market Cap/PAT N.A. N.A. N.A. N.A. N.A. Market Cap/EBITDA N.A N.A. N.A. Trading Volume (shares) (avg. of 1 year) 2,76,131 11,94,630 4,13, % % Trading Volume (shares) (high in 1 year) 18,87,115 1,29,75,537 62,34, % % Trading Volume (shares) (low in 1 year) 25,533 52,215 45, % 14.08% Ratio High/low trading volume % 82.44% Ratio High/average trading volume % 27.88% Source Money Control 4 P AGE

5 TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Mar' 2016 Mar' 2015 Mar' 2014 Comments Shareholding Promoter shareholding Public Institutional shareholding Public Others shareholding Non Promoter Non Public Shareholding 21.98% 0.75% 77.27% 0.00% 24.76% 0.95% 74.29% 0.00% 41.44% 1.80% 56.76% 0.00% No new equity shares were issued during the period from Mar 2014 to Mar The promoter shareholding decreased from % to % due to invocation of pledge shares. The shareholding of public institution decreased from 1.80 % to 0.75% and that of public others increased from % to % during the same period. The shareholding pattern has reclassified as per the SEBI circular dated 30 th November, The promoters have pledged 63.67% of their shareholding. TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS Market Activity of Promoters Preferential issue to promoters Preferential issue to others GDRs issued by the Company Issue of ESOPs/Issue of shares other than Preferential allotment Source Annual Report The promoters have not sold/bought any shares in last three years No No The Company did not issue any GDRs during last three years The Company did not issue any shares to the employees under its ESOP Scheme in last three years. 5 P AGE

6 Equity: The equity shares capital of the Company Glossary Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders funds of the Company Turnover: The revenue earned from the operations of the Company EPS: Earning Per Share is net profit earned by the Company per share Profit After Tax Number of outstanding shares P/E ratio: It is the ratio of the Company s share price to earnings per share of the Company / Price of each share Earnings per share Current Assets: Cash and other assets that are expected to be converted to cash in one year Fixed Assets: assets which are purchased for long term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment Total Assets: Current Assets + Fixed Assets Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges incurred during the year in relation to borrowed money. Long Term Liabilities: Long term liabilities are liabilities with a maturity period of over one year. Current Liabilities: A company's debts or obligations that are due within one year. Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. Inventory Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business can turn its accounts receivable into cash during a period Accounts recievables Fixed Asset Turnover: The fixed asset turnover ratio is a financial ratio of net sales to fixed assets Fixed Assets Current Asset Turnover: The current asset turnover ratio is a financial ratio of net sales to fixed assets Current Assets 6 P AGE

7 Operating Profit Margin: Operating margin is a measurement of what proportion of a Company s revenue is left over after paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company s operating income (also known as operating profit ) during a given period by its sales during the same period. Operating profit Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit Return on Assets: ROA tells you what earnings were generated from invested capital (assets) Net profit Total Assets Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Net profit Net worth Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. Net profit Total Debt Equity share capital Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. Current Assets Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets Inventories Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. Current Assets Inventories Account Recievables Current Liabilities Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a Company's effectiveness in using its working capital. Current Assets Current Liabilities Debt to Equity ratio: The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a Company can pay interest on outstanding debt. 7 P AGE

8 Market Cap/Sales ratio: Market Cap/sales ratio, Price sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per share stock price by the per share revenue. / Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company s market cap to net worth. / Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company s market cap to net profit. / Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company s market cap to EBITDA. / Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year 8 P AGE

9 DISCLAIMER Sources Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website. Company Informa on Analyst Cer fica on The analysts involved in development of this factsheet certify that no part of any of the research analyst s compensation was, is, or will be directly or indirectly related to the contents of this factsheet. Disclaimer While SES has made every effort and has exercised due skill, care and diligence in compiling this factsheet based on publicly available information, it neither guarantees its accuracy, completeness or usefulness, nor assumes any liability whatsoever for any consequence from its use. This factsheet does not have any approval, express or implied, from any authority, nor is it required to have such approval. The users are strongly advised to exercise due diligence while using this factsheet. This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not for profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation. All disputes subject to jurisdiction of High Court of Bombay, Mumbai. SEBI Reg. No. INH This factsheet or any portion hereof may not be reprinted, sold, reproduced or redistributed without the written consent of Stakeholders Empowerment Services Contact Informa on Stakeholders Empowerment Services A 202, Muktangan, Upper Govind Nagar, Malad East, Mumbai Tel research@sesgovernance.com info@sesgovernance.com Research Analyst: Sumit Tank 9 P AGE