10 February 2016 CMP: Rs.33 Industry: Other Leisure facilities BSE Group/Index: M Promoters Gupta family Year of incorporation 2013 Registered office 702, Plot No. 1, Concord CHS, JVPD Scheme, Vile Parle (W), Mumbai, Maharashtra 400056 Company website www.powerhousegymindia.co.in Key Data (as on 23 Dec 15) BSE 538731 ISIN INE982Q01017 Face Value (Rs.) 1 Mkt Cap (Rs.mn) 227.7 Current P/E 262.72 Current P/BV 1.92 52 week high-low (Rs.) 54-24.5 30 day avg daily trading vol N/A Equity capital (Rs.mn) 69.0 Net worth (Rs.mn) 118.7 Company Business Powerhouse Fitness and Realty Limited is operating a chain of Gyms in Mumbai and has a presence in Surat and Jaipur through a franchise. It also provides other fitness services like Zumba, yoga and Physiotherapy. The company was listed in October 2014. Peer group analysis The company has one listed peer which is much larger than itself. Financials Standalone Particulars (FY15, Rs.mn) Powerhouse Fitness and Realty Ltd. Talwalkars Better Value Fitness Ltd. Total Income 99.5 2,455.1 EBIDTA 10.8 1,228.9 EBIDTA margin 10.9 50.1 PAT 0.9 483.8 PAT margin 0.9 19.7 EPS 0.1 17.6 Cash accruals 7.2 881.1 Debt/EBIDTA (x) 0.9 2.5 Debt/Equity (x) 0.1 1.1 ROANW (%) 1.1 17.1 ROACE (%) 4.8 14.0 P/E (TTM) 262.7 - P/BV (TTM) 1.9 15.8 Source: CMIE, Company Page 1 of 5
Share Price Performance Change in Shareholding Pattern (%) Year Promoters DII FII Others 5.0% % -5.0% 0.8% Since Listing Sep-15 65.2 - - 34.8 Jun-15 65.2 - - 34.8 Mar-15 65.2 - - 34.8-1% -15.0% -10.1% Powerhouse S&P BSE 500 Top Public Shareholders with >1% shareholding Sl. No. Name of the Shareholder No. of Shares held (in 000s) Shares as % of Total No. of Shares 1 N A Construction Pvt Ltd 188.0 2.7 2 Transparent Share and Securities Pvt Ltd 104.0 1.5 3 Sujana Pingle 10 1.5 4 Rohit Chokhani 96.0 1.4 5 Rachna Suresh Chokhani 96.0 1.4 6 Animesh Shivkumar Gupta 72.0 1.0 Total 2201.0 9.5 Page 2 of 5
Key strengths and opportunities The Indian fitness industry is in its early stages of growth with a gym penetration rate of just 0.13% and significant untapped potential that could result in unabated growth in the coming years. Key concerns and risks This sector has a lot of competition with many brands in the market. The company carries out its operations in mainly in Mumbai which provides concentration risk. There is a shortage of trained fitness professionals. A majority of fitness equipment used in India are imported and suffer high rates of import taxation, leading to higher gym costs. Industry overview India is ranked third after US and China in the study of highest number of obese people in the world. There is also a marked increase in lifestyle diseases which are prompting people to become aware about the need to remain fit. Rising employment, purchasing power and urbanisation has instilled awareness among the people about the need to remain fit and healthy. With constant rising surge in the number of gym-goers, the fitness industry in India is all set to witness significant growth. Changing social trends are also facilitating the incremental inflow of female customers in the Indian fitness industry who today make up almost half the Indian market. Quarterly results The company has not posted any quarterly results. Page 3 of 5
Book Value per share Key ratios 17.2 Dividend per share (Rs.) 0.2 EPS (Rs.) 10.2 0.1 31-Mar-13 31-Mar-14 31-Mar-15 Profitability Leverage ratios RONW (%) ROCE (%) Debt/EBITDA (x) Debt/Networth (x) 5.5 4.8 3.4 2.0 1.1 0.4 0.9 0.1 Page 4 of 5
Financials P&L (Rs. mn) FY13 FY14 FY15 Balance Sheet (Rs. mn) FY13 FY14 FY15 Total Income NA 38.9 99.5 Share Capital NA 40.8 69.0 EBIDTA 4.9 10.8 Share Application Money Pending allotment - - EBIDTA margin 12.6 10.9 Reserves & Surplus 0.8 49.7 Depreciation 1.7 6.3 Net worth 41.6 118.7 EBIT 3.2 4.5 Borrowings 16.9 9.9 Interest 2.0 2.8 Current Liabilities & Provisions 5.3 17.1 PBT 1.2 1.7 Total liabilities 63.8 145.6 Tax 0.4 0.8 Net fixed assets 35.3 48.0 PAT 0.8 0.9 Capital WIP - 13.9 PAT margin 2.1 0.9 Investments 0.3 - Dividend (Rs.mn) - - Inventories - - DividendPayout Sundry Debtors - 0.2 Cash & Bank 1.9 3.1 Other Current Assets 10.8 1.0 Loans and Advances 15.8 8 Miscellaneous Expenses not w/off - 0.2 Deferred Tax Assets/(Liabilities) (0.3) (0.7) Total assets 63.8 145.6 Cash Flow (Rs.mn) FY13 FY14 FY15 PBT NA 1.2 1.7 CF from Operation (16.5) (32.4) CF from Investment (37.2) (32.9) CF from Financing 55.7 66.6 Inc/(dec) Cash 1.9 1.2 Closing Balance 1.9 3.1 Disclaimer The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied on as such. Our company shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for any investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation which may affect their investment in the securities of companies referred to in this document (including the merits and risks involved). The discussions or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. Page 5 of 5