Sarveshwar Foods Ltd IPO

Posted on by Hiren Kamani

Sarveshwar Foods Ltd



Sarveshwar Foods Ltd Incorporated in 2015, but the business was founded by the late Shri Mulamal Ji in 1890, and his son the late Shri Isher Dass Gupta took it into the second quarter of the last century. The group further expanded under the vision of the current chairman, Shri Suraj Prakash Gupta (Papaji), who gave it a new direction. Currently owned and managed by the fourth generation of the family and supported by a team of able professionals.

With over 100 years of experience in sourcing and processing of traditional Basmati rice Sarveshwar Foods Ltd is engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. They offer procurement, storage, milling, sorting, packaging, branding and distribution of Rice.

Company’s product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice. Along with
the varied variety of conventional Basmati and non-Basmati rice their product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products. They markets and distributes these organic food products under its brand “Nimbark”.

Company is selling organic products through this store viz. rice, red rice, brown rice, flours, pulses, nuts & dry fruits, spices & condiments, jaggery & sugar, breakfast cereals, edible oils, saffron, flaxseed, sesame seed. Sarveshwar’s operations are based out of the Jammu Region in the State of Jammu and Kashmir.

(Source: sarveshwarrice.com)

On performance front, Sarveshwar Foods Ltd has (on a consolidated basis) posted turnover/net profits of Rs. 241.37 cr. / Rs. 7.40 cr. (FY14), Rs. 262.50 cr. / Rs. 7.97 cr. (FY15), Rs. 355.19 cr. / Rs. 5.43 cr. (FY16) and Rs. 419.89 cr. / Rs. 12.81 cr. (FY17). For first half of current fiscal ended on 30.09.17 it has reported net profit of Rs. 7.93 cr. on a turnover of Rs. 259.39 cr. For last three fiscals, SFL has posted an average EPS of Rs. 7.09 and an average RoNW of 18.94%. Based on last three years’ average EPS asking price is at a P/E of around 12. Issue is priced at a P/BV of 1.98 on the basis of its NAV of Rs. 43.03 as on 30.09.17. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 13 against its peers trading at 60 (LT Foods), 27 (KRBL) and 19 (Chamanlal Setia) as on 28.02.2018.




Issue Detail:

»»  Issue Open: Mar 5, 2018 – Mar 7, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 6,467,200 Equity Shares of Rs 10 aggregating up to Rs 54.97 Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 83 – Rs 85 Per Equity Share
»»  Market Lot: 1600 Shares
»»  Minimum Order Quantity: 1600 Shares
»»  Listing At: NSE SME

One can apply this sme for short to long term.

Sunflag Iron & Steel Co. Ltd – Still Attractive

Posted on by Hiren Kamani

Sunflag Iron and Steel Company Ltd

Sunflag Iron & Steel Co. Ltd

Sunflag Iron and Steel Co. Ltd one of My Old Recommendation Near 52 Rs.  CMP : 84++ (Old Recommendation Link: http://www.freestockanalysis.in/accumulate-sunflag-cmp-52-25/) Still Looking Attractive

Sunflag Iron and Steel Co. Ltd. is a prestigious unit of the SUN FLAG GROUP. The plant is located in the central part of India at Bhandara, Maharashtra & it is 70 Kms from Nagpur. The plant has a capacity to produce 360,000 tonnes per annum of high quality special steel using liquid pig iron and sponge iron as basic inputs.

The main processes at the plant are,
– Iron making (Mini Blast Furnace, Sponge Iron Plant, Sinter plant).
– Steel Making
– Continuous Casting
– Rolling Mills
– Heat Treatments
– Bright Bar Making
– Inspection
– Quality Assurance

Within a short period of its inception in 1989, the SUNFLAG STEEL has established itself as a major global force. Started as a Spring Steel producer, the company today produces variety of steels. Carbon Steels, Alloy steels, Free & semi free cutting steels, Micro-alloyed steels, Stainless Steels, Spring Steels, Valve Steels, Bearing Steels, Cold Heading Quality Steels, Tool Steels, etc.
The profiles are Round Bars, Round Cornered Square, Round & Hexagonal wire Rods, Hexagonal straight bars, Flats, Bright Bars (Peeled/Drawn/Ground bars) etc.

Sunflag Steel produces majority of the Steel for Automobile use in Engine, Drives, Transmissions, Suspensions etc. applications. Sunflag Steel also supplies steel to Indian Railways, Ordnance Factories, General Engineering & Power sectors.

Sunflag Iron & Steel Co. Ltd. has collaboration with Daido Steel Co. Ltd., Japan from 2010. The association is useful for process & Quality enhancements, New Grade Developments, Localization of Indian Steel by the Automobile companies, Continual Improvements, etc.

Apart from catering to the Domestic steel requirements, Sunflag Steel also exports to South East, Middle East, European countries, United States etc.
The Steel is produced using 100% Iron ore as a basic raw material input. No scrap is sourced from outside.
The steel has very low tramp element contents & free from Radioactive or other harmful & hazardous contamination.

Sunflag Steel is ISO 9001, TS 16949, ISO 14001, OHSAS 18001, AD-2000-Merkblatt WO certified & ISO/IEC 17025 approved Testing laboratories by NABL.

(Source : Company's Official Website)

Anual Result of Company

Sunflag Iron and Steel Company Ltd Anual Result

Market Cap.: 1,524.66 Cr.

Current Price: 84.60

Book Value: 44.41

Face Value: 10.00

52 Week High/Low: 90.90 / 34.00

Only Long Term Investor invest in this Gem 

Ruby Mills Ltd – Steady and Consistent

Posted on by Hiren Kamani

ruby mills limited

Ruby Mills Ltd

Ruby Mills Ltd Incorporated in the year, 1917 as a Composite Textile Mill mainly manufacturing Cottons. The management of the unit was taken over by the late Shri C N Shah in 1946 and thereafter the mill has been regularly progressing and manufacturing a wide range of products. From 1959 onwards the management has been under the dynamic leadership of the Chairman and Managing Director, Shri M C Shah and has made tremendous progress by way of its product range, quality and performance.

The Ruby Mills Ltd., has two plants. The spinning & weaving plant is located at Dhamni & the process house at Kharsundi close to Bombay-Pune Highway.

Since 1996, The Ruby Mills Ltd., is manufacturing MICRO DOT FUSIBLE INTERLINING & BASIC INTERLINING, in Technical Collaboration with GYGLI TEXTIL AG, Switzerland.

A modern Research & Development Laboratory fully equipped with the latest quality control equipment and recognized by the Government of India supports these manufacturing activities.

The Ruby Mills Ltd has forward integration into a state of the art process house to have a capability of fiber to finished fabric.

The company is a highly modernized Composite Textile Mill in Bombay. The plant is involved in spinning, weaving, processing of textile fabrics. The company’s installed capacity comprises of 21,024 spindles, 65,000 Mts. of woven fabrics. The processing capacity is on an average 1.25 lakh meters.

The plant is manufacturing yarns and fabrics of Cotton / Polyester / Rayon & Blends. The plant has latest generation of machines comprising of Super High Production Cards, Auto Leveller, Draw Frames, Auto Coro Open End Spinning Machines, Auto Coner Winding Machine, and Wide Width Picanol Air Jet & Rapier Weaving Machines. The plant has its own Process House, which is capable of Bleaching, Dyeing & Finishing complete production.

The factories are located 70 kms. South East of Bombay has advantages in terms of easy accessibility, availability of transportation of raw materials and finished goods, well established communication facilities and availability of adequate semi-skilled labor force.

(Company's Official Website)

As per Annual Report 2017

1) Textiles and Real Estate Division

The revenue from the textiles activity was Rs. 17,500 Lakhs as compared to Rs. 18,080 Lakhs in the previous year. The operating profit for the year was Rs. 2,382.44 Lakhs against Rs. 2,455.91 Lakhs in the previous year. The lower turnover and operating profit was due to slackless due demonetisation and uncertainty and lack of clarity on the provisions and implementation of Goods and Service Tax Act (GST). There was disruption of operations due to Power shut down by the Maharashtra State Electricity Board (MSEB) on 07 February, 2017 pursuant to Maharashtra Pollution Control Board (MPCB) instructions due to non-operation of Common Effulgent Treatment Plant (CETP).

The revenue from real estate activity was Rs. 2,715.54 Lakhs as compared to Rs. 3,176.01 Lakhs in the previous year. The operating profit for the year was Rs. 2,313.27 Lakhs as against Rs. 2,715.01 Lakhs in the previous year.

2) Land Development at Dadar

The construction of office building structure is complete as per approved plan under the earlier Development Control Rules (DCR). The State Government has notified modified Development Control Rules in 2012 wherein plans approved under the old Development Control Rules have an option to comply with the new DCR. The Company has filed its application for Occupancy Certificate for the balance floors which is being processed by the Municipal Corporation.

(Source : Company Anual Report 2017)

Anual Result

Ruby Mills Ltd Anual Result

Market Cap: 716.51 Cr.

Current Price: 352.30

Book Value: 206.60

Stock P/E: 19.11

Face Value: 5.00

52 Week High/Low: 457.00 / 286.50

One Can invest in this stock for mid term near 330 Rs-350 Rs