Wow ! Superstar Amitabh Bacchan has invested nearly a Million Dollars in a Bulk Deal on NSE on August 14,2015 by purchasing 1.5 Million Shares of Nitin Fire Protection Industries at Rs 42.99 !
Consequently Nitin Fire has fired up today 10 % and was on on upper circuit at Rs 47.05 on BSE and Rs 47.15 on NSE in the morning before opening again only to get back on circuit
Remember how Amitabh had stampeded by buying Two Lakh Shares into BSE Listed Stampede Capital at Rs 88 & Rs 110 levels in December 2013 and see where Stampede is today within a year and a half with long term gains exempt! => Rs 650 levels after crossing Rs 700 recently …that’s a five bagger !
So whats fired up Amitabh Bacchan ! …or is it payment in lieu of Advertising for Nitin Fire just as he took shares of Just Dial at par before IPO and made a killing !
And who’s sold to him ? as it’s a bulk deal in NSE and not a fresh allotment
Nitin Fire Products Industries is a FV Rs 2 Share with a FY 15 Consolidated Book of Rs 15 (moved up in June Q 1FY 16 to Rs 15.67) and an EPS of Rs 2.3 …Networth is Rs 458 crs as on June 30,2015 with Equity at Rs 58.45 crs
Relative Valuations at Rs 47 work out to PBV of 3 and PE of 20 with Capital Employed of Rs 980 crs as on June 30,2015 spread Rs 343 crs in India and Rs 637 crs overseas
Finance Charges were Rs 41 crs in FY 15 and Rs 10 crs in Q 1 FY 16 but most of the Rs 400 cr Debt is actually short term and therefore not reflected in Fixed Assets but in Current Assets
FY 15 Consolidated Topline & Bottomline were Rs 1150 crs & Rs 67 crs respectively.Overseas Sales contribute over half.The Company operates two plants at Navi Mumbai & Andhra Pradesh and has operations in Jebel Ali,Dubai and Singapore
They have an enabling provision to raise US $100 m in Equity and in FY 14 saw a successful buy back of 13.47 lakh shares at Rs 57 average involving Rs 7.7 crs too.Share was split in 2010 from Rs 10 to Rs 2 after raising Rs 64 crs in a 2007 IPO at Rs 190.Two Bonus Issues ,one liberal 5:2 in 2011 and one of 1:3 in 2014 have been given to shareholders
Auditors Haribhakti & Co,LLP have qualified their Report for two non provisions being Rs 5 crs for a Derivative Contract Loss disputed with a Bank and Rs 45.76 crs Investment in Worthington Nitin Cylinders Pvt Ltd where the Company has relied on a Valuation Report to recover their Investment but Auditors are unable to comment on any potential Impairment as a Fair Valuation Report as required by Accounting Standard 13 is not available
Promoters Nitin Shah and his two sons 37 year old Rahul and 30 year old Kunal run the Show and hold 71% of the Equity.
Their Topline Target is a Billion Dollars by 2020.The CAGR for this to be achieved is an ambitious 40% .However they have stated earlier this year that they expect to grow at 20% to 25% CAGR for the next few years….Inorganic Growth is on the anvil as is entering the Defence Sector with their Products & Services
CAGR from Rs 190 (FV Rs 10) IPO Pricing in 2007 to current Rs 47 (FV Rs 2) after considering Split & Two Bonus Issues works out to 477% Absolute gains and 24.5% CAGR over 8 years without considering dividend returns and any fractional value of the bonus issues
Going Forward what should be the CAGR over next 3 years or do you think “Nah!”
Disclaimer : Have an Interest in the Company