Cement Companies

This has been a bad year for the cement companies post the world economic slowdown. Some companies are overvalued in spite of this. Ambuja and ACC are acceptable to an extent as a bounce back would be best  for the big three - Ultratech, Ambuja and ACC. Rain commodities, Dalmia enterprises and Andhra Cements seem overvalued.

Company Name	Mcap/Sales
Ambuja Cements	3.149865971
ACC	2.731699567
Rain Commoditie	3.375153825
Dalmia Enter	8.145511296
Andhra Cemen	2.569839308

The big three spend around 20% of the net sales on the raw materials. There are some companies which spend a lot on raw materials, which might mean the company pays more for the raw materials. The companies which might very less for the raw materials are India Cements, JK Cements, Mangalam Cements and Shree Digvijay.

Company Name	Raw mat/Sales
Birla Corp	28%
Prism Cement	49%
Rain Commoditie	55%
Dalmia Enter	27%
HeidelbergCemen	32%
OCL India	35%
KCP	28%
Andhra Cemen	38%
Burnpur Cement	55%
Barak Vally Cem	25%

Andhra cements debt seems to be huge and it can never repay its debt in the reasonable future. Madras, Rain Commodities and Panyam cements need to pay approximately 1 year sales to repay their debt, this may be difficult as well. Ultratech has the biggest debt among the big three, this is bringing the net profit down for the biggie. But Ultratech can manage this debt as this is not huge.

Company Name	Int/Sales	Int/NP	Debt/NP	Debt/Sales
Shree Cements	5%	84%	879%	53%
Madras Cements	5%	66%	1323%	107%
Rain Commoditie	6%	-10%	-184%	103%
Andhra Cemen	21%	-54%	-1867%	710%
Panyam Cements	6%	-205%	-3473%	94%
Saurastra Cemen	11%	-73%	-466%	68%
Barak Vally Cem	5%	821%	9772%	60%

Company Name	Last Price	52 wk	52 wk	Market Cap	Net Sales	Net Profit
		High	Low	(Rs. cr)	(Rs. cr)	(Rs. cr)
ACC	1111.6	1233	917	20891.41	7647.77	1120.01
Ambuja Cements	151.5	165.5	112	23219.3	7371.52	1263.61
Andhra Cemen	11.39	16.89	8.03	166.32	64.72	-24.6
Barak Vally Cem	12.55	26.75	11.35	27.81	95.12	0.58
Birla Corp	273	394.95	242.7	2102.25	2146.37	319.88
Burnpur Cement	6.55	10.05	5.41	28.17	27.38	0.49
Chetinad Cem	540	570	390	2062.75	1545.58	75.17
Dalmia Enter	135	235	87	1096.06	134.56	21.44
Guj Sidhee Cem	8.15	15.45	6.92	117.86	347.91	-3.03
HeidelbergCemen	31.1	54	25.05	704.77	868.16	63.3
India Cements	69.55	107.15	62.1	2136.43	3413.29	68.1
JK Cement	109.1	148.5	95.8	762.91	2361.35	64.05
JK LakshmiCemen	43.75	56.8	35.5	535.32	1317.26	59.13
KCP	26.3	30.85	22.4	339.06	316.17	41.35
Madras Cements	104.65	123	79.7	2490.35	2620.71	210.98
Mangalam Cement	93.55	134.9	76	249.72	491.57	38.24
OCL India	90	124.95	83.05	512.1	1472.08	114.47
Panyam Cements	50.4	104.9	33.95	80.73	141.29	-3.81
Prism Cement	40.45	59.85	35.75	2036.08	3364.27	95.79
Rain Commoditie	31.75	40.22	25	1124.5	333.17	-186.04
Saurastra Cemen	14	23.5	8.4	71.67	389.41	-57.06
Shree Cements	2074.95	2200	1504.75	7228.55	3498.89	209.7
Shree Digvijay	9	12.98	7.51	127.24	295.02	1
UltraTechCement	1160.1	1228	890	31793.81	13205.64	1404.23

--------------

Company Name	Raw Materials*	% of Net	Interest	% of Net	Debt	% of
		Sales		Sales		Liability
ACC	1464.1	19.14	56.78	0.74	523.82	12.31
Ambuja Cements	1420.92	19.28	48.69	0.66	65.03	13.53
Andhra Cemen	24.27	37.5	13.31	20.57	459.4	61.25
Barak Vally Cem	24.07	25.3	4.76	5	56.68	35.44
Birla Corp	598.6	27.89	61.95	2.89	945.41	31.67
Burnpur Cement	14.95	54.6	1.16	4.24	15.42	18.39
Chetinad Cem	335.8	21.73	64.57	4.18	896.06	38.78
Dalmia Enter	36.72	27.29	0.09	0.07	0.32	0.06
Guj Sidhee Cem	41.49	11.93	2.55	0.73	7.5	6.87
HeidelbergCemen	280.05	32.26	4.21	0.48	0	14.16
India Cements	554.44	16.24	141.72	4.15	2456.07	30.87
JK Cement	423.36	17.93	114.5	4.85	1319.15	42.58
JK LakshmiCemen	303.11	23.01	59.91	4.55	996.99	40.16
KCP	88.7	28.05	13.94	4.41	350.06	45.82
Madras Cements	561.95	21.44	139.9	5.34	2791.17	48.93
Mangalam Cement	100.99	20.54	2.19	0.45	0	2.57
OCL India	510.99	34.71	62.45	4.24	852.27	47.66
Panyam Cements	27.22	19.26	7.82	5.53	132.33	50.21
Prism Cement	1651.58	49.09	105.73	3.14	1169.84	35.09
Rain Commoditie	183.16	54.98	19.09	5.73	342.42	42.8
Saurastra Cemen	71.52	18.37	41.8	10.73	265.87	56.26
Shree Cements	777.12	22.21	175.35	5.01	1844.29	42.6
Shree Digvijay	28.34	9.61	0.56	0.19	0	0.62
UltraTechCement	2686.75	20.35	277.11	2.1	4144.6	20.73

I would consider Ambuja, ACC, Ultratech, India Cements, JK Cements, Heidelberg cement, Mangalam Cement and Shree Digvijay. Stay with the bigger players as this is a very capital intensive business - Setting up a cement plant is not like buying a few computers for 50K rupees each and renting a office space.

https://docs.google.com/spreadsheet/ccc?key=0AkkfAImTou94dGpMaml0alh6UFIwX3d5X3JUV3gxTkE

Thanks to Britannica for the pic.

Suprajit Engineering -

Established 1985

Based out of Bangalore

mechanical control cables for motorcycles, cars, commercial vehicles and non automotive

instruments, speedometers

Top Indian Companies - by MCAP and Profit

Agri Companies

Housing Finance Companies

HDFC is the big boss here, huge valuations and huge player. A lot of banks are in this business as well. HFCs are better focussed to lend into categories such as Home loans and mortgages. Banks such as ICICI, SBI are also popular places where people tend to shop when getting their loans. 

Company Name	Last Price	52 wk	52 wk	Market Cap	Net Profit
		High	Low	(Rs. cr)	(Rs. cr)
HDFC	668.05	736.45	582.25	98,482.05	3534.96
LIC Housing Fin	225.85	245	150.4	10,720.26	974.49
Dewan Housing	185.55	288	171.1	1,946.11	265.13
GRUH Finance	551.2	630.05	310.1	1,945.82	91.51
GIC Housing Fin	74.05	122.4	68	398.77	113.77
Shristi Infra	154	248.7	132.1	341.88	3.73
Can Fin Homes	91.6	135.8	86.55	187.64	42.02
Sharyans Res	52.3	83.5	42.5	77.77	1.61
India Home Loan	42.4	52.3	37.45	46.39	0.13
Sahara Housing	57.55	138.1	52.3	40.28	2.26
Coral India Fin	18.6	29	17	19.38	5.98
Vax Housing	15.12	71.8	8.93	11.95
Manraj Hsg Fin	21.65	30.85	20	10.83	0.48
Ind Bank Housin	9.74	22.7	8.48	9.74	-2.92
Parshwanath	23.7	90.75	23.7	7.11	1.35
Int Housing Fin	2.76	7.14	2.71	4.96	-0.03
Sylph Tech	2.52	6.63	2.52	1.25	0.22
Saya Housing	4.04	6.95	2.94	1.21	0.03

From Emkay Indian Housing finance sector report:

Mortgage/GDP in India is a meager 10%* and with improving demographics and economies of scale, we believe there is room for growth.

The recent NHB regulation on withdrawal of pre-payment penalty and uniformity in interest rates on floating loan is unlikely to have any material impact on growth and profitability.

In order to gauge the impact of interest rate on housing loan growth,

we have plotted the trend on yoy growth in individual loan portfolio and floating rate loan of

HDFC. Our analysis depicts that interest rates have minimal impact on mortgage demand in

the past. This is clearly evident from the fact that over the last decade, despite volatile

interest rate regime (8.25%-12.75%), HDFC has witnessed healthy 24% CAGR in its loan

book.

TRF - 505854

A tata group company

Material handling equipment and processing systems

highly volatile profits, thus the stock price

When blogged, 214 (at 52 week low, 5 year low is 90 during march 2009). market cap is 235 Cr.

ups and downs in this stock, buy low, sell high. 5 year high was 1100. more than 10 times the low, about 5 times the current price.

Metrochem Industries

37 Cr market cap at current price of 32.50. 

this company normally sells for around 200 Cr a year. In Fy10 it sold 13 Cr and had a additional income of 47 Cr.

This company seems to have stopped doing business, please exit.

Dyes and Chemicals

Company Name	Last Price	52 wk high	52 wk low	Market Cap	Net Profit	Debt
Amal	11.97	24	11.97	8.41	-3.72	16.69
Asahi Songwon	75.1	129.7	61	92.16	20.04	48.49
Atul	139.4	240.6	135	413.48	96.11	328.23
Audichem	27	41.25	13	13.37	6.37	10.76
Bagadia Colour	4	8.5	3.75	1.48	0.13	1.29
Bhageria Dyeche	21.45	40.8	20.6	15.26	0.9	12.49
Bodal Chemicals	11.5	35.8	10.88	114.44	17.49	287.91
Camex	16.6	22.15	13.25	12.3	1.45	24.03
Chromatic India	78	154	56.55	554.16	0.92	1.56
Clariant	575	854.8	563	1,532.99	112.42	1.05
Daikaffil Chem	12.2	19.5	10.26	7.32	1.63	1.99
Dynamic Ind	8.5	13.8	7.63	2.57	0.71	14.36
Dynemic Product	16.8	27.95	15.15	19.03	5.71	17.3
Indian Toners	14.49	27.8	11.51	11.68	1.51	0.47
Indokem	4.2	5.23	2.9	10.29	-9.52	19.9
Jaysynth Dyestu	18.5	23.3	11.1	16.08	4.47
JD Orgochem	4.59	5.5	2.67	6.08	-3.63	37.75
Kiri Industries	59.1	520	50	112.29	33.21	376.64
Metrochem	32.5	58.95	31.3	37.16	40.7	14.55
Poddar Pigments	31.25	52.3	30.1	33.16	9.55	24.02
Pratiksha Chem	2.33	4.06	2.33	1.3	0.07	3.83
Priya Limited	25.95	43.65	22.25	7.79	2	25.86
Roselabs Ind	10.35	19.55	7.85	23.54	0.01	0.84
Sadhana Nitro	12.5	30	11.71	11.5	-5.03	52.14
Shree Hari Chem	18.6	25.85	13.65	8.27	0.81	16.54
Shreyas Interme	6.7	12.24	5.07	10.79	-7.97	115.77
Sudarshan Chem	542	798.4	480	375.21	55.81	196.39
Ultramarine	34.4	51.75	34	100.45	17	7.74
Vidhi Dyestuffs	3.9	9.16	3.32	19.48	3.68	26.75
Vipul Dyechem	14.5	33.8	12.2	7.88	0.96	6.23
Vivid Global	7.99	10.11	4.03	3.26	0.45	0.52

Clariant and Chromatic are near zero debt companies. Clariant is a well established MNC player.

Atul, Sudarsan, Bodal, Kiri Industries and Shreyas intermediaries are playing with huge debt. Dyes are not very high NPM companies.

I will consider Atul, Sudarsan and Clariant further.

Clariant - 506390

manufactures dyes, colors and intermediate chemicals.

Clariant is a world leader in colors, surface effects and performance chemicals. Clariant has its HQ in Basel, Switzerland. It is the biggest listed dye maker in India.

Now at 52 week low. 5 year low was in Feb 2009. 

Zero debt.

The parent company is in red 4 of the last 5 years. Heavy dividends by this company are explained by some quoting this reason.

Electrical sector

Company Name	Last Price	52 wk	52 wk	Market Cap
		High	Low	(Rs. cr)
Bharat Elec	1354.8	1887.9	1293	10838.4
Genus Power	8.19	23.9	7.55	130.14
JCT Electronics	0.84	2	0.8	66.21
ECE Industries	74.15	135	64	65.08
Hind Rectifiers	38.45	78.95	36	57.9
Centum Electron	45.9	141.85	42.05	56.76
Zicom Security	26.3	56.25	25.75	33.4
Samtel Color	3.23	12.2	2.72	27.62
SV Electricals	10.13	209.5	7.22	21.04
Asian Electroni	5.56	21.75	5.35	19.71
Circuit Systems	11	15.85	7.2	17.27
Cosmo Ferrites	10.96	21	8.75	13.18
Shree Pacetroni	36.15	47.9	30.45	13.01
Delta Magnets	25.55	54.8	25.1	12.42
Ruttonsha Int	17	21	13	11.83
Deltron	39.1	45.55	39.1	11.14
Integrated Tech	10.39	49	10.39	4.97
Rama Vision	4.68	16.71	3.86	4.69
Incap	8.35	14.25	7.75	3.89
Fine-line Circ	7.7	15.27	5.71	3.7
Samtel (India)	4.96	8.5	4.96	3.52
Guj Poly AVX	3.24	7.91	2.93	2.77
BCC Fuba	3.8	9.94	3.56	2.3
Linaks Micro	1.95	4.27	1.95	0.85

The only company in this sector with a medium to large size is Bharath Electronics.

Company	CEPS *	EPS *	P/C	P/E
Rama Vision	0.4	0.08	11.7	58.5
Delta Magnets	2.81	0.5	9.09	51.1
Deltron	0.99	0.99	39.49	39.49
SV Electricals	0.45	0.45	22.51	22.51
ECE Industries	5.03	3.56	14.74	20.83
Centum Electron	8.54	2.55	5.37	18
Bharat Elec	123.59	108.33	10.96	12.51
Guj Poly AVX	1.5	0.38	2.16	8.53
Ruttonsha Int	4	2.31	4.25	7.36
Zicom Security	10.7	3.65	2.46	7.21
Hind Rectifiers	9.05	7.46	4.25	5.15
Cosmo Ferrites	5.72	3.29	1.92	3.33
Genus Power	3.64	3.3	2.25	2.48

Bharath cost 12-13 times. Companies that cost more than BEL seem to be very costly. More analysis may be needed. But These dont seem to be worth the price.

Company Name	Net Profit	Debt
Asian Electroni	-79.26	168.6
BCC Fuba	-0.37	5.77
Bharat Elec	861.47	0.41
Centum Electron	3.39	37.92
Circuit Systems	0.2	14.88
Cosmo Ferrites	4.18	16.51
Delta Magnets	0.84	15.19
Deltron	0.11
ECE Industries	2.09	1.63
Fine-line Circ	0.07
Genus Power	54.77	300.2
Guj Poly AVX	0.55	1.84
Hind Rectifiers	10.12	7.25
Incap	-0.44	6.17
Integrated Tech	-1.24	6.32
JCT Electronics	-19.86	353.27
Linaks Micro	-0.87	29
Rama Vision	0.35	0.57
Ruttonsha Int	1.49	7.85
Samtel (India)	0	2
Samtel Color	-83.93	298.49
Shree Pacetroni	0.16	3.29
SV Electricals	1.03
Zicom Security	14.58	63.75

From the debt, Asian electronics, JCT, Samtel Color and BCC may not even be able to run profits each year. that too with unsustainable debts. BEL is a PSU with very low debt. Genus and Zicom are companies which have good aspirations, but huge debt may bring its performance down during the bad years - so, need to watch the performance.

PVR - Business

P/E is 8 times. Dividend yield is 0.79%, MCap is 329 Cr. Price is 127 when blogged.

This is very visible and glittery business, but how profitable is it? Not so much. Sales increased from 200 Cr to 400 Cr in 5 years until FY11. net profit increased from 10 to 16 Cr in the same period. NPM is a paltry 4%. Debt has increased from 60 Cr to 160 Cr in the same period. The company pays 16 Cr in interest for the debt. 

South Indians are movie buffs - this can be observed from the over 70% occupancy in this region. 

How it earns:

Movie exhibition in 142 screens across 18 cities. (Ticket sales) - 70%

Movie distribution(Revenue sharing)/Co-production  - 20%

Food and beverage sales - 10%

Advertisement - marginal

How it spends:

Distribution

Employees

Rent

NHPC - Business

Operates 12 Power stations. Consultancy for hydro power projects. Devloping power projects around India, even in neighboring countries like Bhutan. Electricity is sold to State EBs based on PPA (power purchase agreements). 

The power generation depends on how the power stations are managed, you cannot expect too much from a PSU. More than that, the power generated on local problems, weather problems, how much it rains, etc.

EBs are not in a very good financial position. They may defer on payments.