INTERNSHIP PROJECT PRESENTATION ON PEER COMPANY ANALYSIS OF CORPORATES IN ANDHRA PRADESH

1. July 6, 2013
Pankaj Gaurav
PGDM 12-14
Peer Comparison Analysis
Summer Internship Program
IMT Hyderabad

2. Portfolio of companies
Company name
Amara Raja Batteries
Limited
Andhra Petrochemicals
Ltd
Divi's Laboratories Ltd
Credit Rating
Industry
CRISIL AA / CRISIL A1+
Auto Ancillaries
ICRA A-/ ICRA A2+
CARE AA+ /CARE A1+
Chemicals
Pharmaceuticals
Floriculture& Agri
business
Textile & Textile
Products
Cement product
Construction &
Infrastructure
Cement
Not rated yet
Neha International
Suryalata Spinning Mills
Ltd
ICRA]BB+/ICRA A4+
Visaka Industries Limited CARE A+/CARE A1+
CRISIL A- Negative/
CRISIL A2+
Ramky Infra
Anjani Portland Cement CARE BB/CARE A4

3. Methodology
A dossier per company is to be prepared.
Capacity
Utilisation
Current Order
Book
Business
Analysis
Cost structure
Board of
Directors/
Management
Team
Shareholding
Pattern
Industry
Analysis
FIRM
Financial
Summary

4. How to analyze a company
•Legal Status
•Bankers
•Management team
•Shareholding Pattern
•Lines of Business
•Business Segments
•Major Products / Services
•Geographic presence
Basic
Information
Fundamental
Analysis
•Analyze financial
statement
•Analyze financial metrics
•Identify the trends in the
business
Business
Overview
Comparative
Analysis
• Price/Earnings Ratios
• Earnings Expectations
• Capacity utilisation
• EBITDA margins
• EBDITA interest coverage
• Net debt/EBITDA

5. 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

6. 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)

7. Project Portfolio

8. Anjani Portland Cement
Anjani Cement is a small enterprise with Market cap of 308.9 Millions as compared to its
Sagar Cement, Deccan Cements &NCL Industries.
Note: All amounts are in Millions
Particulars
Manufacture of
Cement
FY09
FY10
FY11
FY12
FY13
Revenue
1520.976
1527.145
2096.67
3386.547
3260.958
0.41%
37.29%
61.52%
-3.71%
Revenue Growth
Security Printing
Product Segment
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
Gas based power
generation
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
2.717

9. Anjani Portland Cement(cont.)
8
7
3000
Interest cover
6
2814.149
2641.246
2500
2311.428
5
Adjusted Debt/EBITDA
2125.05
2000
4
3
Net adjusted
debt/EBITDA
1500
2
Debt/ Net worth
1000
1
Return on cap employed
(EBIT/cap employed)
0
FY09
FY10
FY11
FY12
FY13
Total net worth
Total DEBT
500
571.951
570.355
671.085
661.136
807.112
850.438
0
FY09
FY10
FY11
FY11
FY11

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

11. Peer Comparison : Cement Manufacturing(cont.)
40
4
35
Madras Cement
30
Chettinad Cement
3.5
Madras Cement
3
Chettinad Cement
India Cements
25
KCP
20
Sagar Cements
Andhra Cements
15
Deccan Cements
10
NCL Inds.
Anjani Portland
5
Raasi Cement
0
(x)
(x)
(%)
(%)
P/E (TTM)
EV/EBIDTA
ROE
ROCE
India Cements
2.5
KCP
Sagar Cements
2
Andhra Cements
Deccan Cements
1.5
NCL Inds.
1
Anjani Portland
Raasi Cement
0.5
Bheema Cements
Bheema Cements
0
D/E

12. Key Business Risks & Issues
Deterioration in
financial
performance
Stretched
liquidity
position
Weak capital
structure
High exposure
to group
companies
Moderate
industry
outlook
Power & fuel
Procurement

13. NEHA INTERNATIONAL LTD.
A premium grower of cut roses, NEHA brings in 19 years of rich experience in the field of floriculture.
Note: All amounts are in Millions
Particulars
Cut Flowers
Machinery
Trading Sales
Product Segment
FY10
FY11
FY12
Revenue
559.725
881.795
784.610
57.54%
-11.02
Revenue Growth
Operating EBITDA
169.936
234.974
115.696
Operating EBITDA
MARGIN
30.36%
26.65%
14.75%
Interest cover
4.89
7.5
2.88
Net profit
122.96
178.125
63.36
Adjusted
Debt/EBITDA
1.01
0.898
2.507
Debt/ Net worth
0.298
0.125
0.129

14. Peer Comparison: Floriculture& Agri business
Company
Market 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
Genera Agri
68.40
6.39
0
42
39.3
Neha Intl.
20.23
23
31.32
0.5
4.21
Pion. Agro Extr.
7.53
0
5.6
9.8
13.5
Elegant Floricul
8.56
142.67
34.26
0.1
0.3
Gemini
Agritech
4.87
0
51.5
0
0
Naisargik Agri
3.97
325
0
0.4
0.5
German
3.
Gardens
77
6.65
0
12.6
7.7
0.6
0.07
0.07
1.53
0.03
1.56
0
2.24

15. Peer Comparison : Floriculture& Agri business(cont.)
350
45
300
40
JVL Agro Indus
250
Genera Agri
200
(x)
(x)
P/E (TTM) EV/EBIDTA
(%)
Elegant Floricul
15
Gemini Agritech
0
Pion. Agro Extr.
20
Elegant Floricul
50
Neha Intl.
25
Pion. Agro Extr.
100
Genera Agri
30
Neha Intl.
150
JVL Agro Indus
35
Gemini Agritech
10
Naisargik Agri
Naisargik Agri
5
German Gardens
German Gardens
0
ROE
ROCE
2.5
JVL Agro Indus
2
Genera Agri
Neha Intl.
1.5
Pion. Agro Extr.
1
Elegant Floricul
Gemini Agritech
0.5
Naisargik Agri
0
D/E
German Gardens

16. Key Business Risks & Issues
High import tariff vis-avis African countries
Low availability of
dedicated perishable
carriers
Inadequate cold chain
management
Availability of basic
inputs, including
quality seeds and
planting materials
Low level of product
diversification and
differentiation, vertical
integration
Lack of quality
irrigation and skilled
manpower

17. Divis Lab
Divis Laboratories focused on developing new processes for the production
of Active Pharma Ingredients (APIs) & Intermediates
Note: All amounts are in Millions
Generic API’s
Particulars
FY09
FY10
FY11
FY12
Revenue
12024.76
9759.46
13436.634
19200.806
-18.84%
37.68%
42.90%
Intermediates
Revenue Growth
Peptide Building
Blocks
Operating EBITDA
5033.225
4395.916
5244.089
7493.317
Operating EBITDA
MARGIN
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
Product Segment

18. Divis Lab (cont.)
350
Total net worth
Total DEBT
300
250
21311.965
19244.034
200
17961.725
16129.132
150
14143.551
100
13184.445
50
0
7720.191
5724.31
FY09
FY10
FY11
FY12
interest cover
62.88438492
139.6369001
310.5918892
183.5996206
Net adjusted debt/EBITDA
3.23586011
4.440459281
1.124815197
1.05200087
debt/ net worth
1.140387729
1.459601371
0.318694891
0.362246794
FY09
FY10
FY11
FY12

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

20. Peer Comparison: Pharmaceutical Industry(cont.)
40
2
Lupin
35
Divi's Lab.
30
Jubilant Life
Hikal
25
Elder Pharma
20
Shilpa Medicare
Vinati Organics
15
Dishman Pharma.
10
Shasun Pharma.
Divi's Lab.
Jubilant Life
1.4
Hikal
Elder Pharma
1.2
Shilpa Medicare
Vinati Organics
1
Dishman Pharma.
Shasun Pharma.
0.8
Orchid Chemicals
0.6
Marksans Pharma
0.4
Marksans Pharma
Nectar Lifesci.
Suven Life Scie.
Nectar Lifesci.
0
-10
Lupin
1.6
Orchid Chemicals
5
-5
1.8
(x)
(x)
(%)
(%)
P/E (TTM)
EV/EBIDTA
ROE
ROCE
Suven Life Scie.
Sequent Scien.
Sequent Scien.
0.2
0
Granules India
D/E

21. Key Business Risks & Issues
Product
concentration risk
Moderate customer
concentration
Long working
capital cycle
Ability of the
company to
diversify the
customers and
products base
Forex risk related to
the exports
Maintaining the
profitability levels

22. Ramky Infrastructure Limited
Ramky Infra principally operates in two business segments: construction (carried out by Ramky Infra itself)
and developer business (implemented through SPVs).
Note: All amounts are in Millions
Particulars
Construction
business
Developer
business
Others
Product Segment
FY10
FY11
FY12
FY13
Revenue
21102
32344.6
39708.7
37735.532
53.28%
22.77%
--4.97%
Revenue Growth
Operating EBITDA
3110.79
-2493.99
-4169.372
5534.385
Operating EBITDA
MARGIN
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
Adjusted
Debt/EBITDA
6.2744
-10.239
-8.85
7.515
Debt/ Net worth
1.82
1.221
1.697
1.671

23. Peer Comparison: Infrastructure & Construction &
Real Estate
Company
Market Cap P/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
JP Associates
11,627.82
23.19
9.94
9.6
9.4
Unitech
5,507.31
29.65
14.93
3.1
4.8
Prestige Estates
5,456.50
19.76
14.86
6.2
7.9
Godrej Propert.
4,107.79
33.49
31.59
5.9
7.2
Phoenix Mills
3,566.93
26.65
17.89
6.5
8.5
Jaypee Infratec.
3,513.99
5.06
8.15
24.5
13.8
Mahindra Life.
1,722.41
17.67
13.02
8.4
9.8
HDIL
1,608.96
2.83
7.08
3.9
7.2
Punj Lloyd
1,074.34
54.83
7.28
1.6
8.4
IVRCL Assets
735.98
0
50.79
-2
1.3
IL&FS Engg.
285.98
0
10.1
-28.1
2.3
Ramky Infra
274.27
4.58
5.86
15.5
18.2
Gammon India
264.13
0
5
4.5
11.6
1.3
2
0.43
0.52
0.88
0.1
1.28
0.25
0.4
1.06
0.27
2.22
0.88
1.25

24. Peer Comparison: Infrastructure & Construction & Real
State(cont.)
80
DLF
JP Associates
60
40
JP Associates
2
Unitech
Prestige Estates
Godrej Propert.
Phoenix Mills
Godrej Propert.
1.5
Phoenix Mills
Jaypee Infratec.
20
Mahindra Life.
HDIL
Jaypee Infratec.
Mahindra Life.
1
HDIL
Punj Lloyd
0
(x)
(x)
(%)
(%)
P/E (TTM)
EV/EBIDTA
ROE
ROCE
IVRCL Assets
Punj Lloyd
0.5
IVRCL Assets
IL&FS Engg.
IL&FS Engg.
Ramky Infra
Gammon India
-40
DLF
Unitech
Prestige Estates
-20
2.5
Ramky Infra
0
D/E
Gammon India

25. Key Business Risks & Issues
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

26. Amara Raja Batteries Limited
Amara Raja Batteries Limited (ARBL), the largest manufacturer of Standby Valve Regulated Lead Acid (VRLA) batteries in
India
Note: All amounts are in Millions
Particulars
Revenue
VRLA
batteries
FY09
FY10
13212.35246
FY11
FY12
FY13
17688.29
23809.298
29810.775
12.13%
Revenue growth
14814.99016
19.39%
34.60%
25.20%
3560.489
4711.956
Operating EBITDA
1927.831427
2699.51243
2651.52
Four-wheeler
batteries:
Operating EBITDA MARGIN
0.145911293
0.182214932
0.149902563
0.149541956 0.158062177
Interest cover
8.676343026
33.52347354
73.06736429
76.26900714
Two-wheeler
batteries
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
0.376816218 0.288524129
Net adjusted debt/EBITDA
1.580235743
0.484843862
0.612969165
-0.266887498 -0.58327837
Debt/ Net worth
0.704833715
0.167737823
0.154748137
0.103872763 0.082394033
0.222
0.345
0.299
Product Segment
Return on cap employed
(EBIT/cap employed)
0.329
0.339

27. Peer Comparison: Auto Ancillaries Industry
Company
Bosch
Motherson Sumi
Exide Inds.
Amara Raja Batt.
WABCO India
Amtek India
Amtek Auto
Bosch Chassis
Federal-Mogul Go
Wheels India
Market Cap P/E (TTM)
EV/EBIDTA ROE
(Rs. in Cr.) (x)
(x)
(%)
27,192.56
30.83
16.58
12,304.75
26.2
13.29
10,336.00
19.77
12.66
4,708.96
16.08
6.38
3,109.53
23.78
12.28
1,874.85
13.99
9.28
1,506.15
5.62
7.47
1,238.98
45.81
0
1,129.29
0
17.24
829.77
26.03
5.47
ROCE
D/E
(%)
(x)
18.6
23.9
27.8
24.4
16.3
23.1
29.3
32.9
33.5
45.9
8
9.5
6.7
7.6
7.2
9.8
-2.3
3.9
15
21.1
0.05
0.76
0
0.13
0
1.22
0.84
0.09
0.43
1.57

28. Peer Comparison: Auto Ancillaries Industry(cont.)
50
1.8
1.6
40
Bosch
Motherson Sumi
30
Exide Inds.
Amara Raja Batt.
Bosch
Motherson Sumi
1.2
Exide Inds.
Amara Raja Batt.
1
WABCO India
20
Amtek India
Amtek Auto
10
WABCO India
0.8
Amtek India
Amtek Auto
0.6
Bosch Chassis
Bosch Chassis
Federal-Mogul Go
Wheels India
0
(x)
-10
1.4
(x)
(%)
Federal-Mogul Go
0.4
Wheels India
0.2
(%)
0
P/E (TTM)
EV/EBIDTA
ROE
ROCE
D/E

29. Key Business Risks & Issues
Multi-tiered and
highly fragmented
domestic auto
supplier segment
Long working
capital cycle
Capex
requirement for
innovations in
technology

30. Andhra Petrochemicals Ltd
APL was established with a capacity to produce 30,000 MTPA of Oxo Alcohols at Visakhapatnam, Andhra Pradesh, India.
Note: All amounts are in Millions
Particulars
Revenue
FY10
FY11
FY13
4594.894
6056.059
5627.6
219.6%
31.8%
7.07%
165.381
515.6907
245.7531
1034.648
0.11504069
0.112231251
0.040579707
0.183852442
3.342473875
1.698188264
0.160681727
10.4339309
-53.805
356.352
300.147
31.187
Adjusted Debt
Manufacture
of OxoAlcohols
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
Revenue growth %
Operating EBITDA
Operating EBITDA MARGIN
Interest cover
Net profit
Product Segment
1437.587
FY12

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

32. Peer Comparison: Chemical Industry (cont. )
120
Castrol India
100
Pidilite Inds.
80
Godrej Inds.
60
Guj Fluorochem
Linde India
20
Castrol India
250
Pidilite Inds.
Godrej Inds.
200
Guj Fluorochem
BASF India
150
BASF India
40
300
Linde India
Gulf Oil Corpn.
100
Balaji Amines
Gulf Oil Corpn.
0
(x)
(%)
(%)
EV/EBIDTA
ROE
ROCE
Balaji Amines
Oriental Carbon
Sah Petroleums
1.4
Oriental Carbon
50
Sah Petroleums
Panama Petrochem
0
Andhra Petrochem
P/E (TTM)
Castrol India
Pidilite Inds.
1.2
Godrej Inds.
1
Guj Fluorochem
BASF India
0.8
Linde India
0.6
Gulf Oil Corpn.
0.4
Balaji Amines
Oriental Carbon
0.2
Sah Petroleums
0
Panama Petrochem
D/E
Andhra Petrochem

33. Key Business Risks & Issues
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
Threat of cheaper
imports from regions /
countries like the Middle
East, South East
Asia, South Africa and
Russia
High concentration risks
due to dependence on
a single feedstock
supplier

34. Visaka Industries Limited
Visaka Industries was established in 1981 to manufacture corrugated cement fiber sheets.
Note: All amounts are in Millions
Particulars
Revenue
FY09
FY10
FY12
FY13
7551.65
9181.59
46.49%
7.89%
14.24%
21.58%
1285.262
394.197
859.214
742.958
1092.218
0.219560286
0.06434850
0.12999170
0.09838353
0.118957392
Interest cover
6.574881043
1.92429538
7.11934459
3.99857425
5.972332147
359.38
572.11
450.74
343.41
506.878
1687.503
1620.349
1888.5
1462.77
2920.194
Adjusted Debt
Product Segment
6609.76
Balance Sheet Debt (1)
Synthetic Yarn
6125.97
Operating EBITDA MARGIN
Building
Products
5853.8
FY11
1696.021
1888.897
2159.571
1733.967
3215.892
Net worth
1877.945
2357.282
2613.512
2864.76
3260.466
1.319591647
4.79175894
2.51342622
2.33386947
2.944368249
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
Revenue growth
Operating EBITDA
Net profit
Adjusted Debt/EBITDA
Net adjusted debt

35. Peer Comparison: Cement Products
Company
Ramco Inds.
Hil Ltd
Everest Inds.
Visaka Inds.
Sahyadri Inds.
Siporex India
Vardhman
Concr.
Sanghvi Asbestos
U.P.Asbestos
Roofit Inds.
Market CapP/E (TTM)
EV/EBIDTA ROE
(Rs. in Cr.) (x)
(x)
(%)
382.35
7.09
4.63
263.26
4.34
2.94
256.18
4.88
4.02
128.47
2.53
3.65
36.09
1.85
4.05
12.18
4.91
0
8.57
4.88
3.5
2.88
0
80
0.93
0.31
66.91
0
0
5.27
ROCE
(%)
D/E
(x)
15.4
19.2
19.5
16.6
10.1
21.9
14.9
23
20.9
16.5
13.3
18.8
0.59
0.3
0.47
0.71
1.64
0.95
0
-1.7
8.7
33.6
0
3
11.5
21.4
0
0.46
1.86
1.92

36. Peer Comparison: Cement Product(cont.)
80
Ramco Inds.
70
60
Hil Ltd
50
Everest Inds.
40
Visaka Inds.
30
Sahyadri Inds.
20
Siporex India
10
Vardhman Concr.
0
Sanghvi Asbestos
-10
(x)
EV/EBIDTA
(%)
ROE
(%)
ROCE
U.P.Asbestos
90
Sanghvi Asbestos
10
U.P.Asbestos
0
P/E (TTM)
Siporex India
Vardhman Concr.
Sanghvi Asbestos
U.P.Asbestos
D/E
Vardhman Concr.
20
Sahyadri Inds.
0
Siporex India
30
Visaka Inds.
0.5
Sahyadri Inds.
40
Everest Inds.
1
Visaka Inds.
50
Hil Ltd
1.5
Everest Inds.
60
Ramco Inds.
2
Hil Ltd
70
Roofit Inds.
2.5
Ramco Inds.
80
Roofit Inds.
Roofit Inds.

37. Key Business Risks & Issues
Assured long-term
supply of raw materials
at reasonable prices
Possible impact of any
adverse
regulations/restrictions
with respect to the
use of asbestos

38. Suryalata Spinning Mills Ltd
Suryalata Spinning Mills Limited is one of the largest producers of Yarn.
Note: All amounts are in Millions
Particulars
Textilesspinning
Synthetic/Blen
ded
Product Segment
Total Income
FY10
FY11
FY12
1731.7
2599.0
2538.8
57.2
197.9
42.3
Net profit
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
54.58
36.27
Number of Days In 47.02
Working Capital

39. Peer Comparison: Textiles- spinning
Market
Company
Cap
P/E (TTM) EV/EBIDTA ROE
(Rs. in Cr.) (x)
(x)
(%)
RSWM Ltd
298.52
4.4
9.07
Sangam India
131.27
2.54
5.6
Winsome Textile
88.6
4.6
9.95
Banswara Syntex
56.05
4.65
5.72
Jindal Cotex Ltd
41.72
9.46
29.78
Deepak Spinners
18.03
1.39
2.94
Suryalata Spg.
17.98
1.62
5.34
Samrat Spinners
15
0
0
East Ind.Syntex
13.32
0
0
Rel. Chemotex
11.3
1.79
5.51
ROCE
(%)
-7.3
8.9
-9.6
8.9
-5.7
14.1
9.4
16.6
6.1
7.5
4.7
10.3
6.1
11.5
0.7
15.8
10
12.3
-14.3
14.3
D/E
(x)
4.07
2.93
2.43
3.74
0.55
1.1
1.88
1.37
0
1.62

40. Peer Comparison: Textiles- spinning(cont.)
35
30
25
RSWM Ltd
20
Sangam India
Winsome Textile
15
Banswara Syntex
10
Jindal Cotex Ltd
5
Deepak Spinners
Suryalata Spg.
0
-5
(x)
(x)
(%)
(%)
(x)
-10
P/E (TTM)
EV/EBIDTA
ROE
ROCE
D/E
-15
-20
Samrat Spinners
East Ind.Syntex
Rel. Chemotex

41. Key Business Risks & Issues
Subdued
demand scenario
Timely infusion of
additional equity
for the debt
funded capex
Rising interest
rates
Operating
profitability
impacted by
political scenario

42. 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.

43. 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

44. References

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-wayforward.html

http://www.eximbankindia.com/op/OP%20112%20Floriculture%
20%5BFull%20Report%5D.pdf

45. Questions & Discussion