2010VP05 Bengal Tea & Fabrics Ltd

Bengal Tea & Fabrics Limited (BSE 532230), belonging to the B D Kanoria Group was incorporated in the year 1983 and later on, in the year 1985, it took over the whole undertakings of Bengal Tea & Industries Limited, earlier known as Bengal Tea Company Limited. 

At present the Company has interest in the business of Tea & Textiles, with a turnover of about Rs 127 crore and Net Profit Rs 1.41 crore  (2008-09) and the Revenue mix was 80 %  and 20% from Textile and Tea respectively.

The Company owns following three tea estates (Ananda Tea Estate,Pathalipam Tea Estate, Bordeobam Tea Estate) with an annual production of about 1.6 Million kgs of Tea, having planted area of 626 hectares, situated in North Lakhimpur in Upper Assam, 35 Kilometers from North Lakhimpur Town and about 240 Kilometers from Tezpur.The Company processes the Green Tea Leaves at its own factory situated at Ananda Tea Estate. 

Asarwa Mills, a Composite Textile Mill, is situated in the Heart of Ahmedabad in the State of Gujarat having an installed capacity of 47616 spindles and 94 loomswas set-up in the year 1900 and is one of the oldest mills in India. The present management has modernized the Mill in a phased manner to transform the same in a State-of-art, tech-savvy Mill. 

The promotor holds 6564358 shares ie 72.9% of 9005985 issued by company and the paid up capital is only 9.01 crore

Operating Margin of the company has increased in leap and bound over the HALF YEAR ENDED Sep 09 when compared to full year 2008-09 as detailed below

Particulars 2008-09 Sep09   T12M
SALES         126.5       69.05   136.1
OP                    2.3          10.6       7.8
OPM               1.8%        15.3%  5.73%
NP                     1.4          5.4       3.2
NPM                1.1%        5.1%    2.35%

EPS                   1.56        6.0        3.56

Operating Profit Margin from Tea which was 33% OPM for 2008-09 has tripled to 80%  and Operating Profit Margin from Textiles which was ( -) 2% improved to 2% for the first half of 2009-10. with the result that the net OPM improved to 15.3%.

For the second half of 2009-10 it is expected that the company shall be able to maintain an OPM of 11.5% as against the negative net OPM for second half of 2008-09.

The Revenue expectation for second half of 2009-10 and for full year 2009-10 is as follows

Particulars  Mar10   Sep09      2009-10

SALES            74.5       69.05     143.55
OP                    8.5        10.6           19.1
OPM              11.5%     15.3%       13.3%
NP                   3.35        5.4            8.75
NPM                4.5%      5.1%          6.1%

EPS                   3.7          6.0         9.7

At CMP of 66 the share trades 6.8x the expected EPS of 9.7 

considering the performance and business mix one may hold with a target of Rs. 95

Please evaluate independantly before investing

2010VP04 Sree Sakthi Paper Mills

Sree Sakthi Paper Mills Limited (Rs. 24.65) in diversification path
BSE: 532701 ISIN: INE266H01014
The company is engaged in the manufacturing of Kraft Paper and Duplex Board catering to both local and export markets.
It was incorporated in 1991 with an installed capacity to produce 15 tonnes of kraft paper per day. It slowly graduated
to manufacture of 70 TPD each of both kraft paper and Duplex Board at two of its plants in Cochin, in the State of
Kerala.
SSPML is one of the largest manufacturing outfit in South India. SSPML’s two manufacturing units namely Kraft
Paper Units situated at Development Area, Edayar, and Duplex Board Unit situated at Kanjirapilly, Chalakkudy. Both
the plants are well equipped with latest technology of Paper making and fully supported by infrastructures and other
utilities.
SSPML has expand its activities at Edayar by enhancing its capacity to 240 MT per day to meet
growing demand from its customers and to emerge as one of the bigger players in South India by March 2008
The total capacity as on 31/3/2009 is as follows 100,000 MT/p.a. which consists of kraft paper 75,000 MT/p.a Duplex Board 25,000 MT/p.a also has an asset of 2 MW co generation for power at a cost of Rs 7 crore .
Results

The Net Fixed asset and Turnover as on 31/3/2005 Rs 18.11 crore Rs 50.55 crore respectively has increased to Rs. 47.73 crore and Rs. 138.68 crore as on 31/3/2009
An Compound annual growth rate of 40.8% in Fixed assets and 47.6% for Sales, Share capital and book value
The current capital base of the company is Rs 16.44 crore (1.644 crore share of Rs 10 each ) Out of which promotors hold close to 52.41 % that is 0.86crore shares and rest 0.78 crore held by public held by public (which includes held by Corporation Bank 2.8 lakh shares)

The book value as on 31/3/2009 is around Rs 21.50 and balance sheet is around 68 crore.
Debt equity ratio is only 0.6

At Current market price of Rs 24.65 the share trades at 9.45 x the eps (2009-10 )
of 2.2 for 2008-09 and 6 x the expected EPS 2.6 for 2009-10
The company is expected rake funds from market shortly by way of right issue / QIB placement .

To meet requirments for
1) Paper Expansion Project to Scale capacity to 1lakh ton
2) To fund Hydro Electric Power project of 11.25 MW
Government of Kerala has allotted 3 small hydro power projects to the company for implementation.
Palchuram Project :5.25 mw
Alamparathode Project :3.00 mw
Mukkuttathode Project:3.00 mw
Total:11.25 mw

All Projects are located at North Kerala
Hydrology Reveals Steady Rainfall
Minimal Forest Area Involved
Eligible for Subsidy and Carbon Credit
The projects have been allotted on BOOT basis for a period of 30 years

As per the Government order, the Company hasto implement the projects through separate Special Purpose Companies. Accordingly three new companies have been incorporated.
Sree Kailas Palchuram Hydro Power Ltd
Sree Adisakthi Mukkuttathode Hydro Power Ltd
Jalashaayi Alamparathode Hydro Power Ltd

Government of Kerala has conveyed the approval to the new implementation companies for the execution of the
project and also allowing signing up the implementation agreement by the said new
companies.
In this connection Technical Evaluation and Feasibility Reports (TEFR) for the two projects have been approved by the Government and for third project, the Technical Evaluation and Feasibility Reports (TEFR) is under preparation.
3) To Meet the Capital requirments /contribution towards Group project of logistic park
Sree Kailas Group –launching logistic park in Chennai in technical collaboration with BPS Global,Singapore.
The group is planning for a 300 crores project specializing in Logistics Park, Villas and Comfort Homes.
Sree Kailas Logistics Park is to be built on a site of around 35 acres and situated at a prime location on the National Highway 45 nestled between, to the one side, the vastly growing automotives sector and, to the other side, access to the quickly developing consumer area, close to the major Chennai port.
The logistic park proposed at Chennai is spread over 35 acres(1524600 Sqr feet),which will be benefit the trading community, corporate, etc. The proposed facility is constructed on world-class pre-engineered structure, which has insulation on roof and walls to reduce heat. The facility has floor loadings, numerous numbers of loading bay doors and sufficient space for auction yard besides protection from rodents.
The Logistics Park is proposed at Urgadom, Chennai , which is strategically the best location for logistics , where we can serve both industry as well as FMCG. The project is very near to industries viz, Nokia, Hyundai, Saint Gopan Glass, Flextronics, Dell, Delfi and very near to Renolt Nissan, KOmatsdu, Avera, Tristler Ltd, Ashok Leyland , Ford Ltd, etc.


The promotor are try to increase their stake to 76% from present 52.4% to enable them to raise capital in near future retaining the major shares

Conclusion with caution
Please evaluate independantly before investing

Kailas group having business interest in paper, transportation, real estate the only listed company is sree sakthi paper mills (SSPML).
The company (SSPML) s having fund requirement for Expanding Paper Mfg capacity and for diversification into Hydro power project. The group is having fund requirement for setting up logistic park

2010VP03 Trend Electronics

The Trend Electronics Limited BSE: 517228 ISIN: INE219F01017

is grossly undervalued compared to its peers

The price performance of Trend Electronics and its peer is as given
below

Company CMP Price Last Yr and Change% Price Lat Mth and Change %

Trend Electron 30.65 Over Year 21.15 44.92% Over Month 31.95 -4.07%

Videocon Indust 248.70 Over Year 133.25 86.64% Over Month 225 10.46%

Mirc Electronic 18.20 Over Year 11.21 62.36% Over Month 18.05 0.83%

Sharp India 27.55 Over Year 13.00 111.92% Over Month 26.15 5.35%
======
The Performance of the company over a year was noteworthy

Change from Oct 07 to Sep 08 to Oct08 to Sep 09

Total Income Rs. 782cr to 842 Cr(7.67%)
Total Exp Rs. 748cr to 811 cr(8.42%)
Op Profit Rs. 26cr to 31 Cr(19.3%)

Net Profit Rs 2.4 to 3.71 cr (54.55%)
Capital base 0.75 cr
EPS 3.2 to 4.95 (54.55%)
Dividend 0.5 per share to 1per share (expected)

===

My optimistic evaluation of likely performance is given below

Trend Electronics

Prom Hold 47.6% Pubic 52.4%

CMP Rs 32 at PE 6.5x EPS 4.95

M Cap Rs 24 Cr Ind. PE 13.5

Expectation Oct 2009 Sep 2010

Turnover Rs 1109cr

Expenditure Rs 1073cr

OpProfit Rs 36cr

Int , Dep &Tax Rs 28cr

Net Profit Rs 8 cr

EPS Rs 10.66

OP Margin 3.25%

My Target Perception Rs 96 at PE 9x : Mar Cap 72cr

Growth (2009-2010) Revenue 31.7% EPS 215% over 2008-2009

Kindly evaluate independently. I am not responsible for any loss

2010VP02 NHPC

NHPC 35.60 MCap Rs43790 cr

BSE: 533098 | NSE: NHPC | ISIN: INE848E01016

Capacity 5134MW at cost of 21400 (Historical Cost) crore (ie Rs 4 cr a
MW) and restated cost of 28000

Present Capacity of 13 hydroelectric power stations with generating
capacity is 5,134.2 MW, of which two power stations with a combined
capacity of 1,520 MW, constructed and operated through Subsidiary,
NHDC.
Power stations and hydroelectric projects are located predominantly in
the North and North East of India, in the states of Jammu & Kashmir,
Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur,
Sikkim and West Bengal. The Company along with its Subsidiary
generated 18951 MUs of electricity and sold 16933 MU of electricity.

Capacity to increase to 14341 MW
The company is presently engaged in the construction of 11
hydroelectric projects of 4,622 MW investing around Rs. 9500 crore
till 31.3.2009. (Estimated outlay Rs 46500 crore @ 5cr/mw)
Government sanction is awaited for 5 projects with an anticipated
capacity of 4,565 MW and. 2,166 MW under joint venture

Survey and investigation works are being carried for nine additional
projects, totaling 7,255 MW

The net worth of company was Rs 18392 crore as on 31.3.2009 pre public
issue of shares and Rs 22420 crore post issue of IPO. On the total
paid up capital of Rs 12301 crore and the NBV Rs 18.22 per share

The company had generated a total revenue of Rs 4051 crore and net
OPBIT of Rs 1529 crore(which is 8.31% of Net worth) during 2008-09

The company is having a capex of 37000 cr which shall put the total
asset value to around 74500 cr. expecting a debt portion of 28000 cr
and equity contribution of 9000cr

i recommend buy at dip with 12 month target of 25-30% from Rs36 and
capital appreciation for long term

Please evaluate independently before investing

2010VP01 Assamco foreign assets

Overseas Assets:

Austin Exploration Limited (AEL): - Assam Company Limited is in Joint
Venture with a Texas based company having assets in the US and South
Australia. AEL currently maintains working interest and net revenue
interests in five key oil and gas assets: two in Australia and three
in the U.S.A.
(i) PEL 105 (AUS) license is owned 100% by AEL. It covers an area of
437 Sq. Km. and is surrounded by producing oil and gas fields, some of
which are the largest in the Cooper Basin. There is a farm-in
agreement between AEL and Adelaide Energy, the official operator. A
noteworthy fault line was discovered in May 2008 and drilling is
expected to commence during 2009. The estimated possible reserves is
upto 6.2 billion cu. ft. of gas and 1.04 million barrels of oil
condensate.
(ii) PEL 73 (AUS) license covers an area of 625 Sq. Km. It underwent a
proprietary hydrocarbon study in September 2008 and the results have
been encouraging. AEL anticipates that drilling is possible during
2009. AEL maintains a 16.6667 working interest in this prospect
(iii) Polecat Creek (U.S.A.) was the first prospect drilled by the
Company in 2007. Production rates have increased but are currently
being maintained at lower levels until natural gas market prices reach
$7 to $8 per mcf. AEL maintains a 26.25% Net Revenue Interest in this
well.
(iv) Park City project (U.S.A.) encompasses approx. 8,000 acres in
Park City, Kentucky, U.S.A., with plans of further acquiring 25,000
acres. AEL maintains an undivided 75% working interest and 65.625% Net
Revenue Interest in every well it drills at Park City.
(v) The Moses Austin Project (U.S.A.) covers an area of 731.88 acres
and an additional 160 acres mineral lease was acquired in November
2008 within the same field. The Company is examining opportunities for
the acquisition of additional mineral rights and well locations.

source annual accounts

2010VP01 Assamco

I started tracking Assam Company (500024) on 10 Dec 2009 at Rs. 18.70
now the scrip is Rs. 23.55 up 25%

Assam Company is a member of the U.K. based Duncan Macneill Group
having interest in Tea and Road Transportation & oil and gas field.
Assam Company has demerged the Oil & Natural Gas Division and is
operating under the name and style of Assam Oil & Natural Gas
Limited. The company plans to merge its subsidiary Namburnadi Tea
Company (NTCL) with the parent company.It has around 19 tea
plantations spread over more than 15000 hectares which is valued at
300-350 crore
However it is pursuing its E&P activities in Oil & Gas Sector under
the co itself (Assam Company Limited (ACL) ) in the following blocks
in Assam and Assam-Arakan Basin in association with Canoro Resources
Limited, Calgary, Canada (CRL) CRL is the Operator under PSC.
ACL’s share
(a) Amguri - Developed Block 40%
(b) AA-ON/7 - Exploratory Block 35%

The Company also operates three Marginal Fields under service
contracts from ONGC. These fields are operated by ACL independently.
ACL Share on Oil
Laxmijan - Discovered Block 38%
Barsilla - 35%
Bihubar 35%
In respect of Gas, the Company has 70% share.

Assam Company had back in Nov 2006 announced the successful raising of
U$ 46 million (Rs 210 cr) through zero coupon unsecured foreign
currency convertible bonds (FCCBs). The bonds, having tenure of five
to seven years, will be convertible into equity shares at Rs 28.75.
According to the company, the funds raised through FCCBs would be
invested for exploration and development of Amguri and AA-ON/7
oilfields in Assam. The company holds non-operating interests in both
the blocks.
Now the company had bought back FCCB worth14.2 million ( 31%of
outstanding) The Company's outstanding FCCBs due 2011 as 29 12 2009
stands at USD 31.8 million.

The shareholding pattern of the company is as follows
Type Ref Nos %of Tot
Promoter Holding 1 143071476 46.19
Foreign Inst Investors 2 65853591 21.26
Body corporate 25028971 8.08
Insurance Companies 3 8550914 2.76
General public 4 67256011 21.71
309760963 100.00
Major Shareholder each reference is detailed below
Type Ref Nos %of Tot
Assam Oil Company Ltd. 1 119088048 38.45
Lotus Global Invest Ltd 2 27000000 8.72
Mavi Invest Fund Ltd 2 11511952 3.72
Invest-India Mauritius Ltd 2 27000000 8.72
Lic of India 3 6443490 2.08
Reliance Capital 4 6000000 1.94
The company has stated its reserve of OIL at Amguri is 60 MMbbls and at AA-ON/7 is 80MMbbls
At US$ 7.5 profit a barrel after all cost for recovery of oil the valuation for oil for the consortium at Amguri is Rs 2070 crore. at AA-ON7 is Rs. 2760 Crore
The company has 40% share in consortium which put the value of OIL at AMGURI alone at Rs. 828 crore.The company has 35% share in consortium which put the value of OIL at AA-ON/7 which will work out to Rs. 966 crore. Which put the intrinsic value of OIL in Oil business at Rs 1794 crore as against the Rs 730 crore market capitalisation at Rs 23.55
(the value of 229+617 bcf of GAS is not considered for valuation )
Assumption First M in MMbbls means One Million Second M in MMbbls means 1000 Barrel A Barrel is roughly 158 ltrs of crude
Please evaluate independently before investing
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Assam_Company_(India)_Ltd_030311.pdf