peer company analysis

Pankaj GauravPGDM 12-14

July 6, 2013

Summer Internship Program IMT Hyderabad

Peer Comparison Analysis

Portfolio of companies

Company name Credit Rating IndustryAmara Raja Batteries Limited CRISIL AA / CRISIL A1+ Auto AncillariesAndhra Petrochemicals Ltd ICRA A-/ ICRA A2+ ChemicalsDivi's Laboratories Ltd CARE AA+ /CARE A1+ Pharmaceuticals

Neha International Not rated yetFloriculture& Agri business

Suryalata Spinning Mills Ltd ICRA]BB+/ICRA A4+

Textile & Textile Products

Visaka Industries Limited CARE A+/CARE A1+ Cement product

Ramky InfraCRISIL A- Negative/ CRISIL A2+

Construction & Infrastructure

Anjani Portland Cement CARE BB/CARE A4 Cement

A dossier per company is to be prepared.

Methodology

FIRMShareholding Pattern

Board of Directors/

Management Team

Business Analysis

Capacity Utilisation

Current Order Book

Cost structure

Industry Analysis

Financial Summary

How to analyze a company

• Price/Earnings Ratios• Earnings Expectations• Capacity utilisation• EBITDA margins• EBDITA interest coverage• Net debt/EBITDA

• Analyze financial statement

• Analyze financial metrics• Identify the trends in the

business

• Lines of Business• Business Segments• Major Products / Services• Geographic presence

• Legal Status• Bankers• Management team • Shareholding Pattern

Basic Informatio

nBusiness Overview

Comparative Analysis

Fundamental Analysis

Key Metrics Definitions used for Peer Com.

Market Capitalization: The total market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures..

P/E (TTM) : A valuation ratio of a company's current share price compared to its per-share earnings. The timeframe of the past 12 months used for reporting financial figures.

Calculated as : P/E=(Market Value per Share/ Earnings per Share (EPS)

Enterprise Multiple: A ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account - an item which other multiples like the P/E ratio do not include. Enterprise multiple is calculated as:Enterprise Multiple= Enterprise value/EBITDA

Key Metrics Definitions(cont.)…

Return On Equity - ROE: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.Calculated as : ROE = Net Income/ Shareholder's Equity

Debt/Equity Ratio: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.Calculated as : D/E ratio = Total Liabilities/ Shareholder’s Equity

Return on Capital Employed (ROCE): A ratio that indicates the efficiency and profitability of a company's capital investments.

Calculated as:

ROCE= (EBIT/Total Asset – Current Liability)

Project Portfolio

Anjani Portland Cement

Manufacture of Cement

Gas based power

generation

Security Printing

Product Segment

Particulars FY09 FY10 FY11 FY12 FY13

Revenue 1520.976

1527.145 2096.67 3386.547 3260.958

Revenue Growth 0.41% 37.29% 61.52% -3.71%

Operating EBITDA 475.976 315.518 452.052 764.765 585.704

Operating EBITDA MARGIN

31.29% 20.66% 21.56% 22.58% 17.96%

Interest cover 5.6 3.81 1.054 1.64 -

Net profit 267.925 215.505 15.411 234.111 428.414

Adjusted Debt/EBITDA

1.256 6.783 5.910 3.726 3.946

Debt/ Net worth 1.002 3.166 3.995 3.486 2.717Microsoft Office Excel Worksheet

Note: All amounts are in Millions

Anjani Cement is a small enterprise with Market cap of 308.9 Millions as compared to its Sagar Cement, Deccan Cements &NCL Industries.

Anjani Portland Cement(cont.)

FY09 FY10 FY11 FY12 FY130

1

2

3

4

5

6

7

8

Interest cover


Net adjusted debt/EBITDA

Debt/ Net worth

Return on cap employed (EBIT/cap employed)

FY09 FY10 FY11 FY11 FY11 FY12 FY130

500

1000

1500

2000

2500

3000

570.354999999998671.085661.136

807.112850.437999999998

571.950999999998

2125.05

2641.2462814.149

2311.428

Total net worthTotal DEBT

Peer Comparison: Cement Manufacturing

Company Market CapP/E (TTM)EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (%) (%) (x)Madras Cement 5,069.40 12.89 8.21 18.3 14.6 1.22Chettinad Cement 2,710.48 19.7 4.68 18.7 17 0.99India Cements 1,724.82 9.77 6.66 8.2 10.5 0.72K C P 358.99 10.35 4.76 18.1 17.3 0.99Sagar Cements 327.71 37.32 3.92 18.4 20.5 0.93Andhra Cements 184.04 0 17.01 5 6.5 1.61Deccan Cements 133.77 18.3 2.74 24.3 19.2 1.45NCL Inds. 89.1 0 3.07 25.5 21.4 1.6Anjani Portland 29.42 9.52 4.26 22.3 20.31 3.38Raasi Cement 22.29 0 0 0 0 0Bheema Cements 19.94 0 23.87 0 0 1.17

Peer Comparison : Cement Manufacturing(cont.)

(x) (x) (%) (%)P/E (TTM) EV/EBIDTA ROE ROCE

0

5

10

15

20

25

30

35

40

Madras CementChettinad CementIndia CementsK C PSagar CementsAndhra CementsDeccan CementsNCL Inds.Anjani PortlandRaasi CementBheema Cements

D/E1.

220.

720.

931.

453.

381.

170

0.5

1

1.5

2

2.5

3

3.5

4

Madras Cement

Chettinad Cement

India Cements

K C P

Sagar Cements

Andhra Cements

Deccan Cements

NCL Inds.

Anjani Portland

Raasi Cement

Bheema Cements

Key Business Risks & Issues

Deterioration in financial performance

Stretched liquidity position

Weak capital

structure

High exposure to group

companies

NEHA INTERNATIONAL LTD.

Cut Flowers

Machinery

Trading Sales

Product Segment

Particulars FY10 FY11 FY12

Revenue 559.725 881.795 784.610

Revenue Growth 57.54% -11.02

Operating EBITDA 169.936 234.974 115.696


30.36% 26.65% 14.75%

Interest cover 4.89 7.5 2.88

Net profit 122.96 178.125 63.36


1.01 0.898 2.507

Debt/ Net worth 0.298 0.125 0.129

Microsoft Office Excel Worksheet


A premium grower of cut roses, NEHA brings in 19 years of rich experience in the field of floriculture.

Peer Comparison: Floriculture& Agri business

CompanyMarket Cap P/E (TTM)

EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (%) (%) (x)JVL Agro Indus 168.57 2.79 0.74 20.1 20.7 0.6Genera Agri 68.40 6.39 0 42 39.3 0.07Neha Intl. 20.23 23 31.32 0.5 4.21 0.07Pion. Agro Extr. 7.53 0 5.6 9.8 13.5 1.53Elegant Floricul 8.56 142.67 34.26 0.1 0.3 0.03Gemini Agritech 4.87 0 51.5 0 0 1.56Naisargik Agri 3.97 325 0 0.4 0.5 0German Gardens

3.77 6.65 0 12.6 7.7 2.24

Peer Comparison : Floriculture& Agri business(cont.)

(x) (x) (%)P/E (TTM) EV/

EBIDTAROE

0

50

100

150

200

250

300

350

JVL Agro IndusGenera AgriNeha Intl.Pion. Agro Extr.Elegant FloriculGemini AgritechNaisargik AgriGerman Gardens

ROCE(%

)20

.739

.34.

2113

.5 0.3 0

0.5

7.7

0

5

10

15

20

25

30

35

40

45


D/E 0.60.0

70.0

3 00

0.5

1

1.5

2

2.5



High import tariff vis-a-vis

African countries

Low availability of dedicated perishable

carriers

Inadequate cold chain

management

Availability of basic inputs, including quality seeds and planting materials

Divis Lab

Generic API’s

Intermediates

Peptide Building Blocks

Product Segment


Particulars FY09 FY10 FY11 FY12

Revenue 12024.76 9759.46 13436.634 19200.806

Revenue Growth -18.84% 37.68% 42.90%

Operating EBITDA 5033.225 4395.916 5244.089 7493.317


41.86% 45.04% 39.03% 39.03%

Interest cover 62.884 139.669 310.591 183.599

Net profit 4166.418 3403.365 4292.694 5332.641

Net Adjusted Debt/EBITDA

3.235 4.440 1.124 1.052

Debt/ Net worth 1.140 1.145 0.318 0.362


Divis Laboratories focused on developing new processes for the production of Active Pharma Ingredients (APIs) & Intermediates

Divis Lab (cont.)

FY09 FY10 FY11 FY12

interest cover

62.8843849233741

139.636900050371

310.591889218594

183.599620645437

Net ad-justed debt/EBITDA

3.23586010957188

4.44045928084159

1.12481519669098

1.05200086957485

debt/ net worth

1.14038772865457

1.45960137116124

0.318694891498453

0.362246794230377

25

75

125

175

225

275

325

FY09 FY10 FY11 FY12

14143.55113184.445

17961.725

21311.965

16129.132

19244.034

5724.317720.191

Total net worth Total DEBT

Peer Comparison: Pharmaceutical industry

Company Market Cap P/E (TTM)EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (%) (%) (x)Lupin 38,090.09 30.22 21.23 23.4 22.7 0.3Divi's Lab. 12,796.44 20.93 13.41 27.3 34.1 0.02Jubilant Life 1,970.54 25.04 21.18 3.1 6.4 1.43Hikal 695.99 27.28 5.65 22.4 18.2 1.53Elder Pharma 690.45 7.5 6.59 12.9 13 1.25Shilpa Medicare 631.98 13.73 9.34 16.3 18 0.19Vinati Organics 491.53 7.16 5.63 33.2 31.3 0.75Dishman Pharma. 443.04 7.01 5.44 6.8 10.2 0.8Shasun Pharma. 352.05 14.43 7.48 14 8.9 1.05Orchid Chemicals 343.8 0 7.67 9.7 8.3 1.75Marksans Pharma 333.28 8.4 0 0 0 0Nectar Lifesci. 320.75 3.74 6.25 9.7 11.2 1.22Suven Life Scie. 277.98 9.02 10.21 11.3 9.1 0.64Sequent Scien. 273.82 0 7.62 -3.9 5.9 1.58Granules India 262.25 8.69 4.12 11.7 15.2 0.57

Peer Comparison: Pharmaceutical Industry(cont.)


-10

-5

0

5

10

15

20

25

30

35

40

LupinDivi's Lab.Jubilant LifeHikalElder PharmaShilpa MedicareVinati OrganicsDishman Pharma.Shasun Pharma.Orchid ChemicalsMarksans PharmaNectar Lifesci.Suven Life Scie.Sequent Scien.Granules India

D/E 0.31.4

31.2

50.7

51.0

5 00.6

40.5

7

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

LupinDivi's Lab.Jubilant LifeHikalElder PharmaShilpa MedicareVinati OrganicsDishman Pharma.Shasun Pharma.Orchid ChemicalsMarksans PharmaNectar Lifesci.Suven Life Scie.Sequent Scien.Granules India


Product concentrat

ion risk

Moderate customer

concentration

Forex risk related to

the exports

Long working

capital cycle

Ramky Infrastructure Limited

Construction business

Developer business

Others

Product Segment


Revenue 21102 32344.6 39708.7 37735.532

Revenue Growth 53.28% 22.77% --4.97%

Operating EBITDA 3110.79 -2493.99 -4169.372 5534.385


14.74% -7.71% -10.5% 14.67%

Interest cover 2.760 -1.945 -1.929 1.6777

Net profit 1273.6 2061.3 2440.7 1512.51


6.2744 -10.239 -8.85 7.515

Debt/ Net worth 1.82 1.221 1.697 1.671



Ramky Infra principally operates in two business segments: construction (carried out by Ramky Infra itself) and developer business (implemented through SPVs).

Peer Comparison: Infrastructure & Construction & Real Estate

Company Market CapP/E (TTM) EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (%) (%) (x)DLF 31,796.13 63.35 16.41 6 8.2 1.3JP Associates 11,627.82 23.19 9.94 9.6 9.4 2Unitech 5,507.31 29.65 14.93 3.1 4.8 0.43Prestige Estates 5,456.50 19.76 14.86 6.2 7.9 0.52Godrej Propert. 4,107.79 33.49 31.59 5.9 7.2 0.88Phoenix Mills 3,566.93 26.65 17.89 6.5 8.5 0.1Jaypee Infratec. 3,513.99 5.06 8.15 24.5 13.8 1.28Mahindra Life. 1,722.41 17.67 13.02 8.4 9.8 0.25H D I L 1,608.96 2.83 7.08 3.9 7.2 0.4Punj Lloyd 1,074.34 54.83 7.28 1.6 8.4 1.06IVRCL Assets 735.98 0 50.79 -2 1.3 0.27IL&FS Engg. 285.98 0 10.1 -28.1 2.3 2.22Ramky Infra 274.27 4.58 5.86 15.5 18.2 0.88Gammon India 264.13 0 5 4.5 11.6 1.25

Peer Comparison: Infrastructure & Construction & Real State(cont.)


-40

-20

0

20

40

60

80

DLFJP AssociatesUnitechPrestige EstatesGodrej Propert.Phoenix MillsJaypee Infratec.Mahindra Life.H D I LPunj LloydIVRCL AssetsIL&FS Engg.Ramky InfraGammon India

D/E 1.3

0.43

0.88

1.28 0.

40.

270.

880

0.5

1

1.5

2

2.5

DLFJP AssociatesUnitechPrestige EstatesGodrej Propert.Phoenix MillsJaypee Infratec.Mahindra Life.H D I LPunj LloydIVRCL AssetsIL&FS Engg.Ramky InfraGammon India


Deterioration in the Ramky Infra group’s

financial risk profile, particularly

its liquidity

Higher reliance on short-term

debt

Stretch in working

capital cycle

Cost overrun in execution of

its BOT projects

Amara Raja Batteries Limited

VRLA batteries

Four-wheeler batteries:

Two-wheeler batteries

Product Segment



Revenue 13212.35246 14814.99016 17688.29 23809.298 29810.775

Revenue growth 12.13% 19.39% 34.60% 25.20%


Operating EBITDA MARGIN 0.145911293 0.182214932 0.149902563 0.1495419560.15806217

7

Interest cover 8.676343026 33.52347354 73.06736429 76.26900714

Net profit 804.786707 1670.333868 1480.96 2150.626 2867.047

Adjusted Debt 3749.279934 1933.51446 2076.48 1341.65 1359.513

Net worth 4055.864344 5436.42719 6459.27 8234.69 10598.134

Adjusted Debt/EBITDA 1.944817312 0.716245807 0.783128168 0.3768162180.28852412

9

Net adjusted debt/EBITDA 1.580235743 0.484843862 0.612969165 -0.266887498-

0.58327837

Debt/ Net worth 0.704833715 0.167737823 0.154748137 0.1038727630.08239403

3

Return on cap employed (EBIT/cap employed) 0.222 0.345 0.299 0.329 0.339


Amara Raja Batteries Limited (ARBL), the largest manufacturer of Standby Valve Regulated Lead Acid (VRLA) batteries in India

Peer Comparison: Auto Ancillaries Industry

CompanyMarket Cap P/E (TTM) EV/EBIDTA ROE ROCE D/E

(Rs. in Cr.) (x) (x) (%) (%) (x)

Bosch 27,192.56 30.83 16.58 18.6 23.9 0.05

Motherson Sumi 12,304.75 26.2 13.29 27.8 24.4 0.76

Exide Inds. 10,336.00 19.77 12.66 16.3 23.1 0

Amara Raja Batt. 4,708.96 16.08 6.38 29.3 32.9 0.13

WABCO India 3,109.53 23.78 12.28 33.5 45.9 0

Amtek India 1,874.85 13.99 9.28 8 9.5 1.22

Amtek Auto 1,506.15 5.62 7.47 6.7 7.6 0.84

Bosch Chassis 1,238.98 45.81 0 7.2 9.8 0.09

Federal-Mogul Go 1,129.29 0 17.24 -2.3 3.9 0.43

Wheels India 829.77 26.03 5.47 15 21.1 1.57

Peer Comparison: Auto Ancillaries Industry(cont.)


-10

0

10

20

30

40

50

BoschMotherson SumiExide Inds.Amara Raja Batt.WABCO IndiaAmtek IndiaAmtek AutoBosch ChassisFederal-Mogul GoWheels India

D/E0.

05 0 00.

840.

430

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

BoschMotherson SumiExide Inds.Amara Raja Batt.WABCO IndiaAmtek IndiaAmtek AutoBosch ChassisFederal-Mogul GoWheels India


Multi-tiered and highly fragmented

domestic auto supplier segment

Long working

capital cycle

Capex requirement

for innovations in technology

Andhra Petrochemicals Ltd


Revenue 1437.587 4594.894 6056.059 5627.6

Revenue growth % 219.6% 31.8% 7.07%

Operating EBITDA 165.381 515.6907 245.7531 1034.648

Operating EBITDA MARGIN 0.11504069 0.112231251 0.040579707 0.183852442

Interest cover 3.342473875 1.698188264 0.160681727 10.4339309

Net profit -53.805 356.352 300.147 31.187

Adjusted Debt 1567.291 1492.295 778.698 633.828

Net worth 1618.725 1876.321 2127.09 2158.277

Adjusted Debt/EBITDA 9.476850424 2.893779159 3.168619236 0.612602547

Net adjusted debt/EBITDA 8.872349303 1.785110726 3.048087695 0.484546435

Debt/ Net worth 0.886641647 0.777770968 0.29947581 0.293673148

Manufacture of Oxo-

Alcohols

Product Segment



APL was established with a capacity to produce 30,000 MTPA of Oxo Alcohols at Visakhapatnam, Andhra Pradesh, India.

Peer Comparison: Chemical Industry

Company Market CapP/E (TTM)


(Rs. in Cr.) (x) (x) (%) (%) (x)Castrol India 16,169.64 36.05 20.39 71.4 104.3 0Pidilite Inds. 13,783.81 30.21 19.58 29.7 36.6 0.1Godrej Inds. 10,592.32 277.19 28.98 10 10.5 0.46Guj Fluorochem 3,074.45 7.72 7.96 32.8 38.4 0.37BASF India 2,367.75 19.65 11.06 10 12.9 0.16Linde India 2,251.39 104.35 15.35 4.1 4 0.75Gulf Oil Corpn. 784.77 15.74 7.7 10.5 9.1 0.57Balaji Amines 108.54 3.49 3.71 27.5 24.3 1.33Oriental Carbon 106.14 3.88 3.6 23 23.7 0.63Sah Petroleum 104.28 0 3.75 0.2 23.3 0Panama Petrochem 102.36 8.62 0.37 16.9 24.8 0.05Andhra Petrochem 97.29 15.68 3.24 15 18.7 0.52

Peer Comparison: Chemical Industry (cont. )

(x) (%) (%)EV/EBIDTA ROE ROCE

0

20

40

60

80

100

120 Castrol India

Pidilite Inds.

Godrej Inds.

Guj Fluorochem

BASF India

Linde India

Gulf Oil Corpn.

Balaji Amines

Oriental Carbon

Sah Petroleums

Panama Petrochem

Andhra PetrochemP/

E (T

TM)

36.0

5

277.

19

19.6

5

15.7

43.

888.

620

50

100

150

200

250

300

Castrol India

Pidilite Inds.

Godrej Inds.

Guj Fluorochem

BASF India

Linde India

Gulf Oil Corpn.

Balaji Amines

Oriental Carbon

Sah Petroleums

Panama Petrochem

Andhra Petrochem

D/E (x) 0 0.1 0.46 0.37 0.16 0.75 0.57 1.33 0.63 0 0.05 0.520

0.2

0.4

0.6

0.8

1

1.2

1.4Castrol India

Pidilite Inds.

Godrej Inds.

Guj Fluorochem

BASF India

Linde India

Gulf Oil Corpn.

Balaji Amines

Oriental Carbon

Sah Petroleums

Panama Petrochem

Andhra Petrochem


Weakening Profit due to intermittent

high feedstock prices and weak global demand

High power costs in the near term on account of lower

availability of power from the grid

Lack of integration

benefits

Import duty differentials and Rupee-US Dollar

parity levels

Visaka Industries Limited


Revenue 5853.8 6125.97 6609.76 7551.65 9181.59

Revenue growth 46.49% 7.89% 14.24% 21.58%


Operating EBITDA MARGIN 0.219560286 0.06434850 0.12999170 0.09838353 0.118957392

Interest cover 6.574881043 1.92429538 7.11934459 3.99857425 5.972332147

Net profit 359.38 572.11 450.74 343.41 506.878

Balance Sheet Debt (1) 1687.503 1620.349 1888.5 1462.77 2920.194

Adjusted Debt 1696.021 1888.897 2159.571 1733.967 3215.892

Net worth 1877.945 2357.282 2613.512 2864.76 3260.466

Adjusted Debt/EBITDA 1.319591647 4.79175894 2.51342622 2.33386947 2.944368249

Net adjusted debt 1240.431 1280.177 1621.031 1195.167 2880.017

Net adjusted debt/EBITDA 0.965119174 3.24755642 1.88664407 1.60866024 2.636851801

Debt/ Net worth 0.898590214 0.68738021 0.72259090 0.51060821 0.895637004

Building Products

Synthetic Yarn

Product Segment



Visaka Industries was established in 1981 to manufacture corrugated cement fiber sheets.

Peer Comparison: Cement Products

CompanyMarket Cap P/E (TTM)


(Rs. in Cr.) (x) (x) (%) (%) (x)

Ramco Inds. 382.35 7.09 4.63 15.4 14.9 0.59Hil Ltd 263.26 4.34 2.94 19.2 23 0.3Everest Inds. 256.18 4.88 4.02 19.5 20.9 0.47Visaka Inds. 128.47 2.53 3.65 16.6 16.5 0.71Sahyadri Inds. 36.09 1.85 4.05 10.1 13.3 1.64Siporex India 12.18 4.91 0 21.9 18.8 0.95Vardhman Concr. 8.57 0 66.91 0 0 0Sanghvi Asbestos 4.88 80 0 -1.7 3 0.46U.P.Asbestos 3.5 0.93 0 8.7 11.5 1.86Roofit Inds. 2.88 0.31 5.27 33.6 21.4 1.92

Peer Comparison: Cement Product(cont.)

(x) (%) (%)EV/EBIDTA ROE ROCE

-10

0

10

20

30

40

50

60

70

80

Ramco Inds.

Hil Ltd

Everest Inds.

Visaka Inds.

Sahyadri Inds.

Siporex India

Vardhman Concr.

Sanghvi Asbestos

U.P.Asbestos

Roofit Inds.

P/E

(TTM

)(x

)7.

094.

344.

882.

531.

854.

91 0 800.

930.

310

10

20

30

40

50

60

70

80

90

Ramco Inds.

Hil Ltd

Everest Inds.

Visaka Inds.

Sahyadri Inds.

Siporex India

Vardhman Concr.

Sanghvi Asbestos

U.P.Asbestos

Roofit Inds.

D/E (x)0.

59 0.30.

470.

711.

640.

95 00.

461.

861.

920

0.5

1

1.5

2

2.5

Ramco Inds.

Hil Ltd

Everest Inds.

Visaka Inds.

Sahyadri Inds.

Siporex India

Vardhman Concr.

Sanghvi Asbestos

U.P.Asbestos

Roofit Inds.


Assured long-term supply of

raw materials at reasonable prices

Possible impact of any adverse

regulations/restrictions with respect to the

use of asbestos

Suryalata Spinning Mills Ltd

Textiles- spinning

Synthetic/Blended

Product Segment

Particulars FY10 FY11 FY12

Total Income 1731.7 2599.0 2538.8

Net profit 57.2 197.9 42.3

Operating Profit Margin(%)

12.08 16.9 3.64

Return On Capital Employed(%)

13.72 27.66 10.77

Interest Cover 2.94 5.70 1.95

Debt Equity Ratio 5.55 2.83 1.94

Number of Days In Working Capital

47.02 54.58 36.27


Suryalata Spinning Mills Limited is one of the largest producers of Yarn.

Peer Comparison: Textiles- spinning

CompanyMarket Cap

P/E (TTM)


(Rs. in Cr.) (x) (x) (%) (%) (x)

RSWM Ltd 298.52 4.4 9.07 -7.3 4.7 4.07Sangam India 131.27 2.54 5.6 8.9 10.3 2.93Winsome Textile 88.6 4.6 9.95 -9.6 6.1 2.43Banswara Syntex 56.05 4.65 5.72 8.9 11.5 3.74Jindal Cotex Ltd 41.72 9.46 29.78 -5.7 0.7 0.55Deepak Spinners 18.03 1.39 2.94 14.1 15.8 1.1Suryalata Spg. 17.98 1.62 5.34 9.4 10 1.88Samrat Spinners 15 0 0 16.6 12.3 1.37East Ind.Syntex 13.32 0 0 6.1 -14.3 0Rel. Chemotex 11.3 1.79 5.51 7.5 14.3 1.62

Peer Comparison: Textiles- spinning(cont.)

(x) (x) (%) (%) (x)P/E (TTM) EV/EBIDTA ROE ROCE D/E

-20

-10

0

10

20

30

40

RSWM LtdSangam IndiaWinsome TextileBanswara SyntexJindal Cotex LtdDeepak SpinnersSuryalata Spg.Samrat SpinnersEast Ind.SyntexRel. Chemotex


Subdued demand scenario

Timely infusion of additional equity

for the debt funded capex

Rising interest

rates

Operating profitability impacted by

political scenario

Limitations

• Due to

unwillingness to share annual reports by Pvt. Limited companies, company analysis can be made for public listed companies whose annual reports are available on its website.

• No information on

term loan repayment schedule is made available by firms, which makes a bit difficult to understand a firm’s credit profile.

• For doing business

analysis, capacity utilisation information is not available in annual reports/websites, due to which % utilisation and average realisation per unit can’t be determined.

Key Learnings

•Understanding of the credit profile of a company based on its financial performance, cost structure, financial structure and investments made in past 5 years

•Understanding of key credit rating issues form rationale based on past ratings given by other credit rating agencies in India

•Understanding of the nature of industry in Andhra Pradesh and building a perspective on respective industry outlook

•Identification of key risks exist in respective industry based on industry outlook

•Understanding of the fundamentals of credit rating methodology with respect to corporate sector of India

http://www.indiainfoline.com

http://www.moneycontrol.com/

http://indiaratings.co.in/

http://crisil.com/

http://www.icra.in/

http://www.careratings.com/

http://floriculturetoday.in/indian-floriculture-the-way-forward.html

http://www.eximbankindia.com/op/OP%20112%20Floriculture%20%5BFull%20Report%5D.pdf

References

Questions & Discussion

peer company analysis

Economy & Finance