Apple Finance - property sales - Apple Fin`s Bandra-Kurla property auction flops again

Mumbai October 14, 2005

The auction of Apple Finance’s 10-storeyed office complex at the Bandra-Kurla complex in Mumbai has again evoked a poor response.




At an auction held by the Bombay High Court’s receiver today, the Mumbai-based Jay Sharada Realtors and the Bangalore-based Celebrity Infrastructure placed bids for Rs 130 crore and Rs 140 crore, respectively - much below the assessed value of Rs 240 crore.



The court receiver will now prepare a report and present it to the court in a week.

The 6,041 square metre property was put on sale again for recovery of dues of Canara Bank, Bank of Baroda, Dena Bank, UCO Bank and United Bank of India.

The property has been in the possession of the court receiver since March 2003, as the Bombay Stock Exchange-listed Apple Finance failed to pay the banks the principal of Rs 75 crore and accrued interest for the debentures that they held.

The earlier five auctions too had to be abandoned as bids received were much lower than the reserve price. The property was pledged as security against debentures issued to the banks.

Canara Bank, the trustee for the debentures which matured in 2001-02, offered interest rate of around 16 per cent. During earlier auctions, the highest bids ranged from Rs 91 crore to Rs 193 crore.

The now defunct non-banking finance company was promoted by the Atul Nishar-owned Apple Industries group and was engaged in leasing and hire purchase. The firm surrendered its certificate of registration to carry on business to the Reserve Bank of India in February 2002, following which its registration was annulled in January 2004.

Source : ET

Can Fin Homes Ltd - 511196

Name of Company	Can Fin Homes Ltd
BSE Code	511196
NSE Code	CANFINHOME
ICICI Code
Established
My Take	So-So
Headquarters	Bangalore
Promoters	Canara Bank
Story	200 Cr market cap for a 40 Cr FY10 profit. Which makes the PE around 5 times. Promoter holds 42% of the shares. Can buy when price is 45-50 – that would mean about 4-5% dividend yield.
Sector	NBFC
Sub-sector	Housing finance
Website	http://www.canfinhomes.com/
Positives	Very good NPM's – around 15% is average. 250 Cr reserves for a 213 Cr FY10 revenue is really good. The website focuses on prospective customers and has no information for investors – this could mean, there is no manipulation by the promoters. Can expect a regular dividend yield of 2-2.5% at current prices. Not a very volatile stock – the 52 week price ends are between 75 and 102.
Negatives	1600 Cr debt (for a FY10 revenue of 213 Cr) seems huge. Cannot see a huge increase in revenues for the last 5 years. Going forward also, we cannot expect a great increase in revenue as no ad campaign or offers are visible.
Peers	HDFC, Dewan, LIC Housing, GIC Housing, Gruh
News
Price @ blogged	95.50 (26-Jun-10)

Indiabulls Securities Ltd - 532960

Name of Company	Indiabulls Securities Ltd
BSE Code	532960
NSE Code	IBSEC
ICICI Code
Established
My Take	Like
Headquarters
Promoters
Story	One of the well known names in securities trading and brokerage.
Sector	NBFC
Sub-sector	Securities
Website	http://www.indiabulls.com/securities
Positives	Very near its 52 week low of 26.20. Currently quotes at 11.58 times FY10 earnings. We cannot be sure if dividend will be regular when the SENSEX trades down for long periods.
Negatives	As markets may trade low for a few years, we cannot expect growth for now. Could go to 2008 lows of 17, viz a 25% loss from current levels. Promoters hold <30% of stake in the company. Edelweiss is trading at very high PE multiple compared to Indiabulls bcos of 1200 Cr reserves. Not sure why revenues have come down by half from FY08.
Peers	Religare, Edelweiss, BLB, India Infoline
News
Price @ blogged	26.85 (17-Jun-10)

Prime Securities - 500337

Name of Company	Prime Securities
BSE Code	500337
NSE Code
ICICI Code
Established
My Take	Dislike
Headquarters	Mumbai
Promoters
Story	Judith Investments Pvt Ltd holds 10%, GKK capital markets and N Jayakumar(President) hold 7.5%. Not sure why these do not come in promoter holding.
Sector	Services
Sub-sector	Brokerage, Wealth Management, Institutional broking
Website	http://www.primesec.com
Positives
Negatives	0 % promoter holding as shown in BSE website. 100 Cr market cap at Rs. 40 for FY09 makes no sense for a revenue of 14 lakhs and FY10 estimate of 15 Cr. Out of 28K shareholders, 27K are small share holders and they hold 35%.
Peers	India bulls, India infoline

 

 

HSBC Invest Direct 532653

 

Name of Company	HSBC Invest Direct
BSE Code	532653
NSE Code
ICICI Code
Established
My Take	Dislike
Headquarters	Mumbai
Promoters
Story	Formerly known as IL&FS Investsmart Limited. HSBC already owns 94%. It announced in June 2009 about its plans to acquire remaining 6% as well and delist from the stock exchanges.
Sector	NBFC
Sub-sector	Brokerage, portfolio management
Website	http://www.hsbcinvestdirect.co.in/
Positives	HSBC sure has great plans for this entity.
Negatives	Too Costly for this scrip. This scrip has been pushed up.
Peers	India bulls, India infoline

BLB Ltd - 532190

Name of Company	BLB Ltd
BSE Code	532190
NSE Code
ICICI Code
Established	1965
My Take	So-So
Headquarters	Delhi
Promoters	Bagri family (Founded by Babu Lal Bagri)
Story	Great revenues at >600 Cr each Qtr. Fy09 revenues were at 1700 Cr. Well founded company.
Sector	NBFC
Sub-sector	Trading,
Website	http://www.blblimited.com
Positives	Promoters hold 67%, corporate hold 21%. Public hold only 11%. That means - Only 32% public holding. Regular dividend paying company as well (yield expected > 0.5 every year for a price of Rs. 16). Revenues are bigger than India Bulls or India Infoline. But it commands a P/E of 3.4 (at Rs. 16) compared to 17 to 20 for India bulls and India Infoline. Management is transparent – no insider trading, no questions about the management.
Negatives	No mutual funds, pension funds (foreign or Indian) have any stake. Very low OPM and NPM compared to other NBFC brokerages – India bulls and India infoline have around 10-25% NPM, while BLB has around 1%. Low profits, slow growth.
Peers	India bulls, India infoline

Sumedha Fiscal Services 530419

Name of Company	Sumedha fiscal services
BSE Code	530419
NSE Code
ICICI Code
Established	1990
My Take
Headquarters	Kolkata
Promoters
Story	Works on IPOs, equity placement,debt syndication, M&A, financial restricting, merchantbanking. Offices at Kolkata, Hyderabad, Bangalore, Chennai, Ahmedabad, Jaipur and Guwahati
Sector	NBFC
Sub-sector	Corporate services, investment services
Website	http://www.sumedhafiscal.com/
Positives	Good NPMs of around 20-25% and last few quarters have been >30%. Promoter holding at 52%. Gradual growth has been there for the past years. PE for FY10 estimated is 4. 17 Cr market cap for a approx 11 Cr revenue for FY10 estimated.
Negatives	This is a small cap company.
Peers