Active TopicsActive Topics  Display List of Forum MembersMemberlist  CalendarCalendar  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin

Stock Synopsis
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Stock Synopsis
Message Icon Topic: Alps Industries Post Reply Post New Topic
Author Message
jain208
Senior Member
Senior Member
Avatar

Joined: 13/Feb/2008
Location: United Kingdom
Online Status: Offline
Posts: 626
Quote jain208 Replybullet Topic: Alps Industries
    Posted: 25/Feb/2008 at 4:48pm
Alps Industries -

CMP - 50
Face Value - 10
MkCap - 175 Cr
Dividend - 7.5% (yield 1.5% - a bit less)
Last 4 quarters EPS - 10.22
Trailing PE - 4.89
Book value - 82 per share
Cash - 72 per share
Net Operating Income - 132 per share.

OPM has been consistent around 15% for the last 5 years.
NPM has increased from 4% to 7% over 5 years.
Debt/Equity ratio is high (1.35) - Company have opened a new high quality compact yarn manufacturing facility at Haridwar.


I am not expecting this company to give high-flying returns but it provides a reasonable margin of safety and also scope for reasonable appreciation.

Below is the analysis for Alps Industries by SP Tulsian. Although, I dont follow him much, but some of the things stated here looks good. Please have a look and see whether it makes sense to you as well.

·        Alps Industries is a leading eco-friendly textile products manufacturers and a principal infrastructure player of interior products. The product portfolio of the company includes an eclectic range of home furnishings, sophisticated fashion accessories and high quality yarn.

·          The company has a total of 9 manufacturing facilities on a total built-up area of 15 lakh sq. feet, with units located at Ghaziabad (4 units), Uttarakhand (4 units) and one unit at Pondicherry.

·        The company has completed expansion of its spinning yarn, which is catering to premium segment of yarn market, by installing 66,000 spindles at Haridwar, which has commenced production from December 07, ahead of schedule by about 6 months. This project had a cost of Rs.330 crores.

·        Another project of Rs.63 crores for weaving & processing is being put up. The unit is for weaving of upholstery and decorative furnishing fabrics of 84 lakh square machining fabric processing, which would be operational from July 2008.

·        For FY 07, the company posted a total income of Rs.432.56 crores, with EBITDA of Rs.68.12 crores, resulting in a margin of 15.75% with PBT of Rs.35.48 crores and PAT of Rs.30.35 crores, resulting in an EPS of Rs.9.34 on an equity capital of Rs.32.51 crores.

·        For H1 FY 08 the total income was at Rs.272 crores with EBITDA of Rs.40.61 crores, resulting in a margin of 14.93% with PBT of Rs.20.08 crores and PAT of Rs.18.56 crores, resulting in an EPS of Rs.5.38 on equity of Rs.34.51 crores.

·        The rise in equity is due to preferential issue of equity shares of Rs.65 per share, to the promoters of the company. 40 lakh warrants having issued to the promoters would take equity to rise to Rs.38.51 crores. These warrants would be convertible at Rs.65 per share.

·        The present equity of Rs.34.51 crores is held by promoters of about 31.76%, FIIs 17.59%, Banks and MF 11.09% and Public at 36.71% as at 30-09-07.

·        The company has1,640 retail counters for interior décor products and 1,248 retailers for home furnishings.

·        The company has formed a wholly owned subsidiary Alps Energy Ltd. to undertake Hydro Electric Projects in the states of Uttarakhand and Himachal Pradesh by setting up new power projects as also acquiring existing ones.

·        The break up of present sales is about 78% from domestic market while 22% from exports. Of this 22%, export to US is half, at 11% of total income, on which margins are partially affected by currency fluctuations and rupee strengthening.

·        The company hopes to post a total income of Rs.600 crores for FY 08 with PAT of Rs.38 crores, resulting in an EPS of Rs.11. For FY 09, topline is expected to touch Rs.1,000 crores with an EPS of Rs.16.

·        The present book-value per share is close to Rs.90, while the share is presently ruling at Rs.82. The present market capitalization is just close to Rs.300 crores, while the value of realty and plant is in excess of Rs.600 crores.

·        The share price is now ruling at Rs.82, which has potential to touch Rs.150 in the next 9 – 12 months. It would be wrong to perceive the company as a pure textile play, while it has premium range of textiles and interiors, catering mainly to domestic market.

·        A safe bet at Rs.82.




IP IP Logged
jain208
Senior Member
Senior Member
Avatar

Joined: 13/Feb/2008
Location: United Kingdom
Online Status: Offline
Posts: 626
Quote jain208 Replybullet Posted: 10/Mar/2008 at 3:26pm
Originally posted by Vivek Sukhani

okay..... by the way, whats Alps into?


Alps is mainly is engaged in the manufacturing and export of home furnishings and selling it's product range of venetian and vertical blinds, drapery rods, and other interior decorative and architectural items under the brand name of "VISTA LEVOLOR".

You can find my analysis on Alps in the Stock Synopsis section.

You can find company's last 4 years annual report on the below companies website link http://www.alpsindustries.com/financial_results.php

Abhishek.

IP IP Logged
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 10/Mar/2008 at 3:43pm

Check out for forex derivative exposure in Alps!

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
jain208
Senior Member
Senior Member
Avatar

Joined: 13/Feb/2008
Location: United Kingdom
Online Status: Offline
Posts: 626
Quote jain208 Replybullet Posted: 10/Mar/2008 at 3:53pm
Originally posted by basant

Check out for forex derivative exposure in Alps!



Didn't see that. Is there something wrong? If yes, Can you please throw some light on it.

Abhishek.
IP IP Logged
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 10/Mar/2008 at 3:57pm
That is what someone told me. Please check up if you can. Nothging confirmed though.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
ysunilbabu
Newbie
Newbie


Joined: 31/Jul/2008
Online Status: Offline
Posts: 2
Quote ysunilbabu Replybullet Posted: 04/Aug/2008 at 10:39pm
It showed loss in Jan-Mar 2008 quarter, but came into green again in Apr-Jun 2008 quarter and at present quoting at Rs. 25/- app.  Available at reasonably good price now.
IP IP Logged
meiles
Newbie
Newbie


Joined: 10/Oct/2011
Location: Benin
Online Status: Offline
Posts: 1
Quote meiles Replybullet Posted: 11/Oct/2011 at 8:15am
Your renowned gamers who seem to put on the particular likewise have a great deal to accomplish by using the best way well known a liverpool home shirt will be. The particular soccer equipment's recognition also can joint in if this had been worn and just how perfectly a new company does. This 1966 World Mug Last football shirts sale that had been worn simply by He uk is actually famed for the ease - the reddish personalised football shirts together with the straightforward light Uk crest to the upper body.
IP IP Logged
Post Reply Post New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum



This page was generated in 0.156 seconds.
Bookmark this Page

Join Theequitydesk.com Today!

It’s easy to Join and it’s free.

Here's why members would love to be a part of theequitydesk.com

  • Equity Desk focuses on why to buy shares and invest in share rather than what to buy.
  • Live discussion forum wherein members can discuss the current Indian share Market trend, BSE Sensex or the Nifty Index.
  • Have huge cache of information on Indian and World Share Market.
  • Analysis of Indian stock market, Global events, Investing insights, portfolio management strategies and thoughts,
  • Meet investors from round the globe check their investing strategies share experiences and learn for their experiences on stocks and shares, evaluate opinions on investing in India.

Register now while it’s free!

Already a member? Close this window and log in.

Join Us           Close