Company Overview. Industry Overview. Financial Performance

Transcription

1 Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 CMP: 6.22 January 18, 2016 Stock Details BSE code BSE ID EXCAST Face value ( ) 2 No of shares (m) week H/L 42.45/5.77 Market cap ( m) days avg. daily vol (No) 1,96,463 Free float ( m) 190 Dividend yield FY15 (%) Stock performance (%) NA 1M 3M 12M Absolute -1.8% -20.6% -69.8% Rel. to Sensex 5.0% 8.5% 52.8% Shareholding Pattern* (%) Promoters FIIs DIIs Others 25.11% % % 74.89% *As of September 2015 Company Overview is one of the leading suppliers of Castor seeds and Castor oil across the western part of India. The company also exports to the countries like China, Thailand, Russia and certain parts of Europe. Industry Overview India is the biggest exporter of castor oil holding about 70% share of the international trade in this commodity followed by China & Brazil. The states of Gujarat & Rajasthan contribute 90% of the total castor produced in India. Financial Performance Excel reported a revenue million in FY 15, up by 664.8% YoY. The company reported a net profit of 5.8 million for the fiscal year For the second quarter of FY 16 company reported a top line of 21.7 million, down 77.7% YoY. Bottom line was at 0.4 million. Table1: Key Financials Relative Chart (Y/e March) Q2 15 Q2 16 Sales ( m) Sensex 30,000 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 YoY Growth (%) NM 138.1% 664.3% NM -77.7% EBITDA ( m) EBITDA Margin 2.4% 3.8% 3.1% 3.0% 1.7% PAT ( m) EPS ( ) YoY Growth (%) 10% 596.4% 27.9% NM -97.2% Source: Company, Karvy Investment Advisory Source: Bloomberg 1

2 Background and Business Description is one of the leading suppliers of Castor seeds and Castor oil across the western part of India. The company also exports to the countries like China, Thailand, Russia and certain parts of Europe. Excel Castronics was incorporated as Ahmadabad GasesLtd, it has registered office at Rajkot, and the corporate office is located at Bhuj, The nerve centre of Kutch. The product portfolio of ECL has mainly two commodities to process and distribute Cashew and Cardamom. The is planning to enter the un-organized commodity processing and distribution vertical, and bring its vast managerial and global expertise, to organize and create and niche for itself. Key Strengths Make in India initiative will help India as a global manufacturing hub, which could help the company in the long run. High quality standards. Established track record as manufactures. Strategic location Risks & Concerns Presence of number of traders in the market creates a competitive market. Inferior quality of castor seeds hinders the progress of Company. Certain macro risks such as economic slowdown, cyclical conditions and uncertainty in demand may impact the performance of Company. Board of Directors Table 2: Composition of Board Name Jayesh Vallabhaji Madiyar Payal Madiyar Vallabhji Surji Thacker Manali Doshi Dhaval Danger Source: Company Relation with Company Whole Time Director Non Executive Director Non Executive Director Independent Director Independent Director 2

3 Industry Overview (as per company) Castor plant (Ricinus communis) is cultivated around the world for its non-edible oilseed. Castor is an important nonedible oilseed crop and is grown especially in arid and semi arid region. It is originated in the tropical belt of both India and Africa. It is cultivated in 30 different countries on commercial scale, of which India, China, Brazil, USSR, Thailand, Ethiopia and Philippines are major castor growing accounts about 88 per cent of the world's production. It is an annual crop and is grown by sowing the seeds in hot weather. In India, it is grown as a kharif crop and is planted generally during the months of July and August. The crop has a duration period of 4 to 5 months and is generally harvested in the months of December and January. Castor oil has a wide range of applications mostly industrial. The castor oil has indispensable usage in many industries like cosmetics, surface coatings, toiletries, pharmaceuticals, perfumes, soaps, and medicines. Castor oil and its derivatives are also used in lubricating formulations. Castor oil is used either in crude form or in the refined hydrogenated form. India is the biggest exporter of castor oil holding about 70% share of the international trade in this commodity followed distantly by China & Brazil. The average castor production in India was approximately lakh tones in The states of Gujarat & Rajasthan contribute 90% of the total castor produced in India. Peer group analysis Company CMP ( ) Mcap ( m) Rev ( m) OPM (%) EPS ( ) PE (x) Excel Castronics Ltd % x Nutraplus India Ltd , % (1.41) NM Indo Borax & Chemicals Ltd , % x Source: BSE 3

4 Financial Analysis Excel reported a revenue of million for FY 15, up 664.3% YoY from 39.9 million in FY14. Net profit for the company was at 5.8 million in FY15, up 27.9% YoY from 4.5 million in FY14. EPS was at 0.14 in FY15 compare to 0.20 in FY14. Return on equity increased to 6.4% in FY 15 from 5.2% a year ago. Interest coverage ratio was at very comfortable level in FY15 with ratio at 562x. Year end March Income statement ( million) Revenue % growth NM 138.1% 664.3% EBITDA % EBITDA margin 2% 4% 3% Depreciation and Amortization EBIT Interest PBT Tax 4.1 (1.4) Net profit % growth net profit 10% 596.4% 27.9% Balance sheet ( million) Shareholder fund Non Current liabilities Current liabilities Non Current assets Current assets Cash & cash equivalent Cash flow statement Cash flow operations Cash flow from investing (5.3) Cash flow from financing (3.2) Per share data EPS ( ) CEPS ( ) (1.77) DPS ( ) NA NA NA BVPS ( ) Financial Ratios % ROE 0.8% 5.2% 6.4% ROCE 0.4% 1.6% 10.4% Debt/Equity Interest coverage ratio Current ratio Cash ratio Source: Company, Karvy Investment Advisory 4

5 Financial Snapshot Revenue growth (%) EBITDA margin (%) 35 70% 1 5.0% % 50% 40% % 3.0% % 20% 10% % % 1.0% % Revenue ( m) % growth EBITDA ( m) % EBITDA margin Net Profit Margin (%) BVPS & EPS % 1% 5.0% % Net Profit ( m) % net profit margin 1.9 Book value per share ( ) EPS diluted ( ) Liquidity ratios Profitability ratios % % 8.0% 6.0% 4.0% 2.0% % Current ratio Cash ratio ROE ROCE Source: Company data and Karvy Investment Advisory 5

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