Name of Company | Gujarat Ambuja Exports Ltd |
BSE Code | 524226 |
NSE Code | GAEL |
ICICI Code | GUJAE |
Established | |
My Take | Dislike |
Headquarters | Ahmedabad |
Promoters | Vijayakumar Gupta, Manish Gupta, Mohit Gupta, Sulochana Gupta (family owned) |
Story | Processes food/agri products and markets (mainly exports). Vanaspathi, flour, maize, cattle feed, edible oils, wind mills are also done. |
Sector | Marketing |
Sub-sector | Agro marketing – Cotton yarn exporter, Soya, etc |
Website | |
Positives | Regular dividend payer (can expect a yield of 1% at current prices). Biggest Agri processor (but Laksmi could overtake this soon). Promoters hold 63% - none pledged. Reliance Growth fund holds around 5%. |
Negatives | Revenues have not grown much over the last 5 years(1300 to1400 Cr from FY06 to FY10. Low NPM –ranging from 1.5 to 4%. Too many competitors in sector (Lakshmi overseas is a better bet with better NPM, better growth and cheaper). |
Peers | Lakshmi Overseas |
News | |
Price @ blogged | 38.40(27-Dec-10) |
Cost of company | 531 Cr market cap for a 49 Cr FY10 NP translates to 11 times. 180 Cr Debt with a 392 Cr reserves in FY10 |
Dec 27, 2010
Gujarat Ambuja Exports Ltd - 524226
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Muthumani:
ReplyDelete1. GAEL March 2010 Net Profit (Audited is 60Cr not 49Cr)
http://whatsup-indianstockideas.blogspot.com/2010/08/gujarat-ambuja-exports-june-2010-result.html
2. Long term debt is 18Cr (As per march 2010 Annual report) link:
http://www.bseindia.com/bseplus/AnnualReport/524226/5242260310.pdf
so Debt: 180Cr 18Cr long term debt rest is working capital requirements.. the short term working capital loan is used to buy raw material during harvest period and then processed during the rest of the year..
Inventory is: 266Cr (March 2010) Debt is: 178Cr (March 2010)
Inventory is: 199.38Cr (March 2009) Debt is: 90.32Cr (March 2009)
(Increase in Debt is directly related to levels of inventory.. )
- In trailing 6 months GAEL has reported Net Profit of: 36.85Cr Gross Profit: 65.5Cr (june 2010, Sept 2010)
http://3.bp.blogspot.com/_JWnngvF9_Mg/TMUPQMSsITI/AAAAAAAAAN0/noX5IV5YRZ0/s1600/GAEL-Sept2010-Result.png
- Promoters have also stated in recent CNBC interview that GAEL will report much higher earnings in next 6 months as generally Dec-March quarters is better for agro processing industry..
http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=493799
- My earning estimate for GAEL Year ending March 2011 (Based on Management statement that they will maintain their current margin levels for rest of the year and report 1600Cr topline..)
***********************************
Sales Year ending March 2011: 1600Cr
EBDIT margin 9.5%
Gross Profit = 152Cr
Net Profit Margin: 5.43% = 86.88Cr
EPS: Rs6.28
Current market cap of GAEL is: 522Cr
***********************************
- GAEL is concentrating on Maize (Corn) derivatives business and is the 2nd largest capacity in India after Riddhi Siddhi Glucol.
- GAEL is setting up new Maize derivatives plant in Karnataka for 100Cr by March 2011 from internal accruals only .. no equity dilution (as per annual report)
Please visit my blog for more details about GAEL.
GAEL is a recommended Best Value buy with target stock price of Rs100 in next 12-18 months..
http://whatsup-indianstockideas.blogspot.com/2009/12/gujarat-ambhuja-exports.html
=happy investing
whatsup-indianstockideas.blogspot.com
@whatsup- you surely know much better than me about GAEL. Seems you are a fan and tracking it for a long time. I am new to stock analysis and I just looked at it for an hour or so. I may be wrong in this:
ReplyDeleteI did not think this will create good value for me over the years(long term - say 10 years). The last 2 quaters had a much better NPM as you have mentioned - but i dont think they can maintain it esp because they have pay some money as Interest to the loans(even if it is a short term loan). Also they are subject to the vagaries of the monsoon and forex fluctuations. They are sure a quality focussed/well managed company which can be seen from their export awards for groundnut oil, rapeseed oil, Soyabean,etc and continous profitability.
prices are at Rs. 27 now.
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