Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Anisha Impex Ltd CMP: 11.85 December 31, 2015 Stock Details BSE code 537785 BSE ID Face value ( ) 10 No of shares (m) 16.4 ANISHAIMPEX 52 week H/L 21.00/6.49 Market cap ( m) 194.7 30 days avg vol (No) 333 Free float ( m) 79.8 Stock performance (%) Absolute Rel. to Sensex 1M 3M 12M -2.1% -12.5% -1.3% -1.4% -11.8% 4.0% Shareholding Pattern* (%) Promoters FIIs DIIs Others 36.7% 0.0% 4.1% 59.2% *As of September 2015 Relative Chart Company Overview Anisha Implex Limited is engaged in the fabrics trading business. The Company is a multi-product fabric trading company and its range of offerings include fabrics for bedding, windows dressing, decorative, pillows, accents, table linen, kitchen linen and other home furnishing fabrics. Industry Overview India s Textiles and Garments industry accounted for 14% of India s total industrial production and 4% of India s GDP and it is considered as one of the significant contributors to the national economy. After witnessing challenges during the year 2013 and for most part of 2014 due to unfavorable economic conditions, the Indian textiles and garments sector has seen reversal of trends in second half of 2014. Improving domestic and global economic conditions coupled with the revival in domestic consumption and export demand will lead to the growth of the Indian textiles and garments sector. Financial Performance Anisha Implex Limited revenues for FY 15 rose 7.0% to 425.9 million compared to 398.2 million in the previous year. 25 20 15 10 5 0 Anisha Impex (LHS) Sensex 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 The company has reported a net income of 1.2 million in FY 15, opposed to a net loss of 0.2 million in FY 14. Table1: Key Financials (Y/e March) Sales ( m) 343.2 398.2 425.9 Source: Bloomberg YoY Growth (%) NA 16.0% 7.0% EBITDA ( m) 6.2 6.4 10.3 EBITDA Margin 1.8% 1.6% 2.4% PAT ( m) 1.1 (0.2) 1.2 EPS ( ) NA (1.8) 0.1 YoY Growth (%) NA NM 103.9% Source: Company, Karvy Investment Advisory 1
Background and Business Description Anisha Impex Ltd. is established in 1999 and is dedicated to creating & trading home textile products. The company s products include all possibilities in a home, right from fabrics for bedding, windows dressings, decorative pillows & accents, table Linen and kitchen Linen. It also offers a whole range of architectural products under the brand name "Morgan & Sanders". Few customers of Anisha Impex Ltd are: Alps Industries Limited Argon Denims Limited BBD Traders Private Limited Faishons Flasher India Private Limited Nagar Handloom Private Limited Key Strengths Diverse product portfolio Quality assurance to customers Risks & Concerns Economic downturn Reduction in the value of investments made by the company Board of Directors Table 2: Composition of Board Name Sunil Kumar Malik Puja Malik Dinesh Singh Patwal Puneet Bhawaker Relation with Company Managing Director Non Executive Director Independent Director Independent Director Source: Company 2
Industry Overview India s textiles sector is one of the oldest industries in Indian economy and it is one of the largest contributors to the country s exports accounting to ~11% of total exports. The industry has the capacity to produce a wide range of products that suit to different market segments, both in India and across the world. Improved demand from the US market, rising cost of labor in China would provide boost to the Indian textile exports. According to the Cotton Textiles Export Promotion Council, the textiles industry has realized earnings worth $41.1 billion for period 2014-15 in the form of exports. According to the India Brand Equity Foundation, the Indian textiles industry is currently estimated at around $ 108 billion and is also expected to reach $ 223 billion by 2021. It is the second largest employer in the country after agriculture by providing employment to over 45 million people directly and 60 million people indirectly. The Indian textile industry contributes ~5% to the India s gross domestic product (GDP) and 14 per cent to overall Index of Industrial Production (IIP). The Indian government has devised several export promotion policies in order to promote the textiles sector. It has also allowed 100% FDI in the Indian textiles sector under the automatic route. As suggested by the report of expert committee on vision, strategy and action plan for Indian textiles and apparel sector, the Make in India campaign launched by the government of India intends to provide a further boost to the Indian textile industry and enable it to achieve 20% growth in exports and sustain 12% growth rate in domestic market till 2024-25.The initiatives taken by the Indian government to provide boost to the textile industry coupled with the recent developments in the global market are expected to widen the export markets for the textile exporters and also help in driving textile growth in the domestic market. Competition analysis Company CMP ( ) Mcap ( m) Rev ( m) OPM (%) EPS ( ) PE (x) Anisha Impex Ltd 11.85 194.7 425.9 2.4% 0.1 NM Haricharan Projects Ltd 76.75 1905 54.1 1.7% 0.0 NM Source: BSE 3
Financial Analysis For the period ending 31 March, 2015, Anisha Implex Limited reported revenues of 425.9 million which represents 7.0% jump when compared to the revenues in FY 14. The company s EBITDA stood at 10.3 million in FY 15, a 3.9 million increase than that of its level in FY 14.The EBITDA margin of Anisha Implex Limited also improved by 80bps to 2.4% in FY 15 from 1.6% in FY 14, primary attributable to the spike in sales. Year end March Income statement ( million) Revenue 343.2 398.2 425.9 % growth NA 16.0% 7.0% EBITDA 6.2 6.4 10.3 % EBITDA margin 1.8% 1.6% 2.4% Depreciation and amortisation 1.4 1.6 2.1 EBIT 4.8 4.8 8.2 Interest 3.2 4.6 6.4 PBT 1.5 0.2 1.8 Tax 0.4 0.4 0.6 Net profit 1.1 (0.2) 1.2 % growth net profit -116.9% -735.7% Balance sheet ( million) Shareholder fund 49.7 166.9 168.1 Long term liabilities 0.8 1.0 1.1 Current liabilities 125.5 95.5 74.6 Fixed assets 21.3 24.1 26.2 Current assets 171.8 171.3 215.7 Cash & cash equivalents 0.2 0.2 0.1 Cash flow statement Cash flow operations -20.2-43.2-71.9 Cash flow from investing 7.3-71.5 61.8 Cash flow from financing 13.1 119.0 14.4 Per share data EPS ( ) NA (1.8) 0.1 CEPS ( ) NA 0.1 0.2 DPS ( ) - - - BVPS ( ) NM NM 9.8 Financial Ratios % ROE 2.3% NM 0.7% ROCE 5.7% 2.4% 3.6% Debt/Equity 69.1% 21.7% 34.0% Interest coverage ratio 1.5 1.0 1.3 Current ratio 1.4 1.8 2.9 Cash ratio 0.002 0.002 0.002 Source: Company, Karvy Investment Advisory 4
Financial Snapshot Revenue growth (%) 500.0 400.0 300.0 200.0 100.0 0.0 0.2 0.15 0.1 0.05 0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 EBITDA margin (%) 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Revenue ( m) % growth EBITDA ( m) % EBITDA margin 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Liquidity ratios 0.003 0.003 0.002 0.002 0.001 0.001 0.000 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Profitability ratios Current ratio Cash ratio ROE ROCE Source: Karvy Investment Advisory 5
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