- No Derivatives contract other than forwards in the future.
- Business risk profile will be less due to increasing contribution from maize processing division
- GAEL has un-utilised bank credit limit of 476Cr (Wow!!)
- GAEL has unencumbered cash and bank balance of 8Cr as of March 31,2010
- GAEL is setting up new Maize processing capacity of 250,000Metric Tonnes in Karnataka, with commercial operations starting on Dec 2011 Current maize processing capacity is 350,000Metric tonnes.. so Karnataka plant will increase maize processing capacity by 71.4%
Original CRISIL report is available here (Link)
Posts
13 comments:
Prahalad,
I know you are bullish on Agro based stock. What is your call on Kohinoor Food? 800 cr turn over company is available at 148 cr. Company bought 5% shares last year. Open offer is on agenda. Morever their US and UK divisions doing well. Please share your view
Hey Prahalad...amazing study man....seriously hats off to you..u really keeping v v close watch on it....gr8 man...thanks n hope u keep us updating more on such stocks...thnk a lot
Anonymous:
Kohinoor Foods:
CMP: 52.3
Market Cap: 147.45Cr
Total Income March 2010: 862Cr
which looks good until you look at the debt:
Total Debt: 713Cr
So Enter prise value: 147.45+713-9.26 = 851.19Cr
So a 862Cr company for 851.19Cr is not cheap.. what we really need to see is the cash flow from operations..
5 years Avg Cash Flow from operations: -ve 67.36Cr
So the company is running a deficit of 67.36Cr for the past 5 years .. no wonder they had to go for equity dilution.. also no dividents for past 3 years.. speaks for itself from a lay man perspective..
ROCE: is also poor at 11.43%
So I would suggest.. hold on its not cheap!!
let it start reporting +ve cash flows when you can consider investment.. (My personal view)
=happy investing
whatsup-indianstockideas.blogspot.com
Kalpesh:
Thanks for your confidence..
This is all data in public domain .. but yes.. a lot of follow up is required..
=happy investing
whatsup-indianstockideas.blogspot.com
Gujarat Ambuja Exports Ltd has informed BSE that a Meeting of the Board of Directors of the Company will be held on February 01, 2011, Inter alia, to consider following agenda.
1. To consider and approve Unaudited (Provisional) Financial Results for the quarter and nine months ended December 31, 2010.
2. To consider proposal for declaration of interim dividend for F.Y. 2010-11, if any and other incidental aspects including fixation of record date and date of payment of Interim Dividend.
Source : BSE
Purushottam:
yes a few days delay ...
was expecting on last friday of Jan...
I hope they surprise us with good results and guidance.
=happy investing
whatsup-indianstockideas.blogspot.com
Dear Mr Prahalad,
Thanks for educating us on the exciting prospects of GAEL. You have mentioned that one of the compelling reasons for buying this company is that it is expanding its Maize processing capacity by 71% after which it will overtake Riddhi Siddhi's capacity. However it already has a significant processing capacity. Can you bring out the reason as to why this company is not generating profits like Riddhi Siddhi inspite of substantial existing processing capacity.
Thanks and regards.
MP Surange
mpsurangeatgmaildotcom
MP Surange:
One thing we must understand that corporations are incorporated for tax saving and other advantages a corporation provides..
True GAEL has substantial capacity .. but as far as I see .. Riddhi is setting itself up "For Sale" hence the results will show good margin business..
while the GAEL promoters are busy increasing their shareholding which means they would hold the price down by lower margins and larger expenses..
the fact is GAEL has 5+ years of Operating cash flows of more than 100Cr which means the company is fundamentally sound and with every passing year the valuation of the company increases by 100Cr (approximately)
Now we have a chance to get into the business when the market cap of GAEL is just 511Cr which means GAEL at current market cap and avg cash flows of 100Cr is generating 20% return each year..
so every 3.6 years we are going to double the reserves of GAEL .. also with Maize processing as a new space for GAEL margins are going to expand which means going forward GAEL cash flows will be greater than 100Cr per year..
I would say "Fill it Shut it Forget it!!"
=happy investing
whatsup-indianstockideas.blogspot.com
Sir,
Not related to GAEL(I am invested in GAEL and Jayant)
I just picked up this idea "Globus Spirits" from some other forum and thought of knowing your opinion.
When time permits I request you to have a look at it.
Regards
Sid
Sid ji:
No infor available about globus as no annual report..
look at IFB Agro which has a 186,515 barrel per annum molasses based and 186,515 barrel grain based distillery..
It is also ultra cheap and comes from a well established business house IFB (negative : no dividend)
it has been mentioned as an investment idea in this blog:
http://whatsup-indianstockideas.blogspot.com/2010/04/ifb-agro-value-investing.html
=happy investing
whatsup-indianstockideas.blogspot.com
Hi WhatsUp, Here is an article from My Iris on 1st Jan 2011...
Gujarat Ambuja Exports (GAEL)
Investment Rationale:
GAEL is setting up vegetable oils unit at Kadi in Gujarat. The plant will have the capacity to produce 9,000 tons per annum (tpa) of vegetable oils. Work on the project is under progress and is scheduled for completion by Jul 2011.
>The company is setting up a 11-mega watt, coal- based thermal power plant at Dalpur in Gujarat at an investment of Rs 560 million. Work on the unit is in progress and is scheduled to be completed by Jan 2011.
> It is setting up one of the country`s biggest maize processing unit at Hulasogi village in Shiggaon taluk of Haveri district in Karnataka at an investment outflow of Rs 1.1 billion. The unit is strategically located in the state which produces 30 lakh tons of maize annually, while the farmers in Shiggoan produce around 5 lakh tons of maize, which is more than the units requirements. The new plant which is schedule to commission commercial production by July will have the capacity to process 750 tons of maize per day. Meanwhile GAEL is planning to acquire additional 41 acres of land at Hulasogi to set up other units at the same location and in order to meet its energy requirement it plans to set up 5MW power plant.
> The company with its focus on international trade has set up a wholly-owned subsidiary at Singapore and has recently promoted a vanaspati and oil refinery project in Sri Lanka. To compete globally with giants, the company has put in place a strong infrastructure that constitutes technologically advanced plants with captive power generation at each plant. GAEL is poised to scale newer heights and is fully geared to achieve the magical Rs 18 billion operational turnover .
Thanks
Anonymous had posted this data with regards to GAEL
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GAEL is setting up vegetable oils unit at Kadi in Gujarat. The plant will have the capacity to produce 9,000 tons per annum (tpa) of vegetable oils. Work on the project is under progress and is scheduled for completion by Jul 2011.
>The company is setting up a 11-mega watt, coal- based thermal power plant at Dalpur in Gujarat at an investment of Rs 560 million. Work on the unit is in progress and is scheduled to be completed by Jan 2011.
> It is setting up one of the country`s biggest maize processing unit at Hulasogi village in Shiggaon taluk of Haveri district in Karnataka at an investment outflow of Rs 1.1 billion. The unit is strategically located in the state which produces 30 lakh tons of maize annually, while the farmers in Shiggoan produce around 5 lakh tons of maize, which is more than the units requirements. The new plant which is schedule to commission commercial production by July will have the capacity to process 750 tons of maize per day. Meanwhile GAEL is planning to acquire additional 41 acres of land at Hulasogi to set up other units at the same location and in order to meet its energy requirement it plans to set up 5MW power plant.
> The company with its focus on international trade has set up a wholly-owned subsidiary at Singapore and has recently promoted a vanaspati and oil refinery project in Sri Lanka. To compete globally with giants, the company has put in place a strong infrastructure that constitutes technologically advanced plants with captive power generation at each plant. GAEL is poised to scale newer heights and is fully geared to achieve the magical Rs 18 billion operational turnover .
======================
Anonymous:
I would agree with the information that has been supplied by SMC research .. in myiris
I dont know why your message is missing so republishing it for the info of everyone..
=happy investing
whatsup-indianstockideas.blogspot.com
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