Alps Industries
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1628
Printed Date: 28/Apr/2024 at 8:24am
Topic: Alps Industries
Posted By: jain208
Subject: Alps Industries
Date 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.
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Replies:
Posted By: jain208
Date Posted: 10/Mar/2008 at 3:26pm
Originally posted by Vivek Sukhani
okay..... by the way, whats Alps into?
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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.
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Posted By: basant
Date Posted: 10/Mar/2008 at 3:43pm
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Check out for forex derivative exposure in Alps!
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Posted By: jain208
Date 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.
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Posted By: basant
Date Posted: 10/Mar/2008 at 3:57pm
That is what someone told me. Please check up if you can. Nothging confirmed though.
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'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
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Posted By: ysunilbabu
Date Posted: 04/Aug/2008 at 10:39pm
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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.
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Posted By: meiles
Date Posted: 11/Oct/2011 at 8:15am
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