Essar Oil Ltd - 500134

Name of Company	Essar Oil Ltd
BSE Code	500134
NSE Code
ICICI Code
Established
My Take	Dislike
Headquarters
Promoters	The Ruia's
Story	Essar oil started commercial refinery production in May 2008 – that is why the revenue had a spurt from 500 odd Cr until FY08 to 37K Cr in FY09 and FY10. The refinery is located in Vadinar in Gujarat.
Sector	Oil
Sub-sector	Exploration, refinery,
Website	http://www.essar.com/section_level1.aspx?cont_id=fBlwNPJhC0c=
Positives	Has onshore and offshore drilling in India and Africa.
Negatives	Low NPM's of 0.08 in FY10, loss making from FY06 to FY09. 30 Cr profit for a 37K Cr revenue is abysmally low. In FY10, the company does not show any reserves as well. The company pays very low tax as well. The management is well known for scams – tax evasion, stating low profits so as to pocket the money.  Promoters hold only 18% in the company and most of it is pledged – which gives the company no power. Pledged promoter stake reminds of the Satyam story – i.e 15% of total stake. Most of the GDR as well is held by group company Vadinar oil. No real institutional investors hold stake in this entity. 17K Cr market cost 550 times earnings.
Peers	Reliance
News	Tax evasion,
Price @ blogged	137.65 (26-Jun-10)

Essar Oil tax evasion

Tue Aug 18 2009, 02:40 hrs


Ahmedabad:
 
In a major setback to ESSAR Oil Ltd (EOL), the Gujarat High Court has dismissed its petition and allowed the Central Bureau of Investigation (CBI) to further investigate the case of criminal conspiracy, fraud and cheating registered against Chief Executive Officer Shishir Agarwal and vice-president P R Ashok. Some Customs and bank officials are also party to the alleged crime.

According to the details of the case, ESSAR is accused of evading customs duty of over Rs 36 crore in 1999. The company and its officials had allegedly hatched a conspiracy with Customs officials and paid only Rs 60 crore against a duty of Rs 96 crore.

The then Commissioner of Central Excise and Customs, M K Bhada, was one of the accused in the case along with some officials of the State Bank of Saurashtra. The CBI had booked the accused under various provisions of the Indian Penal Code and the Prevention of Corruption Act.


Source: http://www.indianexpress.com/news/essar-oil-duty-evasion-cbi-gets-hc-nod-for/503261/

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BLB	Low OPM, not sure of other reasons, some quarters negative	10.90
Coromandel agro	Low liquidity – sells just once a year	6.04
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CEAT Ltd - 500878

Name of Company	CEAT Ltd
BSE Code	500878
NSE Code	CEATLTD
ICICI Code
Established
My Take	So-So
Headquarters
Promoters	R P Goenka & family(spencers, KEC, etc)
Story	468 Cr tyre company with a well known brand in India.
Sector	Auto Anciliary
Sub-sector	Tires
Website
Positives	Revenue has been growing consistently (though not at a great pace – 1700 to 2800 Cr from FY06 to FY10). Has a 468 Cr market cap when the company has shown near 600 Cr reserves for FY10. 48% promoter holding with no pledged shares.
Negatives	Wavery profits, loss in FY09. 460 Cr debt in FY10.
Peers	MRF, JK Tyre
News
Price @ blogged	136.85 (23-Jun-10)

Eveready Industries India Ltd - 531508

Name of Company	Eveready Industries India Ltd
BSE Code	531508
NSE Code	EVEREADY
ICICI Code
Established
My Take	So-So
Headquarters	Kolkata
Promoters
Story	Has
Sector	Manufacturing
Sub-sector	Battery
Website	http://www.evereadyindustries.com/
Positives	Has a great brand for batteries. 600 Cr reserves for a <1000 Cr revenue.
Negatives	No consistent NPM for the past 5 years (wavers between slightly negative to 15%). Competition from MNC players is huge. No regular dividend as well. 460 Cr market cap for a company with 300 Cr debt in FY09. Revenue has been almost flat for the last 5 years. 40% promoter share holding with 12 % of total shares pledged.
Peers
News
Price @ blogged	61.90 (23-Jun-10)

India Infoline Ltd - 532636

Name of Company	India Infoline Ltd
BSE Code	532636
NSE Code	INDIAINFO
ICICI Code
Established	http://www.indiainfoline.com/
My Take	Like
Headquarters	Thane
Promoters
Story	2800 Cr market cap at current prices.
Sector	NBFC
Sub-sector	Securities
Website
Positives	Near the 52 week low of 90. More than 1000 Cr reserves for FY10, when the revenue was <700 Cr. Low debt company (<2Cr in FY09) – interest paid is also 10 Cr in FY10, 7 Cr in FY09.
Negatives	PE is around 20.
Peers	BLB, India Bulls, Edelweiss
News
Price @ blogged	98.70 (23-Jun-10)