Have a Look at the Market Cap (today closing March 28,2016)& Consolidated Debt (September 30,2015) of these Five Listed Companies of Anil D Ambani
Name Of The Company
Market Cap (Rs.Crs)
Total Debt (Rs.Crs)
Rs 120941 crs was the Aggregate Consolidated Long & Short Term Debt of Anil Ambani’s Reliance Five Listed Group Companies as on September 30,2015 while today’s Market Cap is Rs 53434 crs.Aggregate it and you’ll get Enterprise Value without adjusting for any Cash
Reliance Defence (erstwhile Pipavav) has come into his fold now and a turnaround is expected after CDR was approved ~ RCom is planning to reduce Debt substantially by selling Assets like it’s Tower Business.It also is being supported by Big Brother Mukesh Ambani’s tie ups for Jio Roll outs etc ~ RPower has just declared and paid it’s maiden interim dividend of 10% in December 2015 but continues to struggle to commission Samalkot Power Plant on non availability of Gas ~ Rinfra & RCap are the relatively stabler companies
As long as his companies keeps servicing debt the Banks who have lend will not have to classify the Loans as NPAs….In fact with Anil Ambani planning huge Defence Sector Investments and Growth in his other Companies the aggregate Debt may increase even after Asset Sell offs
Problem is that Anil Ambani has not been enjoying good Investor Credibility after wealth destruction in RCom & RPower & suspected involvement of top management in the 2G Telecom Scam.Investigation continues
The Group’s Market Cap is Rs 53434 crs ~ Compare this with Big Brother Mukesh Ambani’s Reliance Industries that closed today with a Market Cap of Rs 330654 crs
Now his big Focus is on Defence with India having embarked on a Huge Defence ‘Make in India’ Endeavour opening out FDI Cap to 49% in the Sector
None of Anil Ambani’s Companies have approached it’s shareholders or the Public for funds after the Reliance Power IPO at Rs 450 in January 2008
None have as None could !
The Reliance Power IPO was a huge obscene premium assault on the Public from which the Public has yet to recover (Quotes at Rs 47 today after a Bonus Issue in 2008 itself from the Premium collected that adjusted the Price to @ Rs 270!) .The Issue was hyped by the Investment Banker Wolves to create a huge oversubscription.
Warning !!! ~ Caution on Sang Froid Labs at BSE Upper Circuit Rs 8.71 !
How can BSE even have allowed Sang Froid to be directly listed from October 2015 ! ?
Bulk Trades ~ Lakhs of Shares Trading Volume ~ Buy Reco being circulated under Share Khan Premium Service with website as sharkhan.in which just flashes on your screen repeatedly!!!
PLEASE STAY AWAY FROM SANG FROID LABS
SEBI must investigate how BSE allowed this Listing & the trading patterns in it….Wonder if the Broking Group Sharekhan & Pharma Co Ajanta Pharma will ignore that their names have been misused liked this for recommending Sang Froid…..I don’t believe Sharekhan has recommended this….& I dont believe Ajanta Pharma is associated with this company in any way let alone it being recommended as a Venture with it !
Right Now this the Trap being set on the BSE Counter for Retail Suckers to buy into with the reco on mobile circulation stating to buy 10000/20000 shares for immediate rise to Rs 12/15 in just two days for this Ajanta Pharma Venture !…Oh ! Stoploss of Rs 7 recommended too !
This Company does nothing ! though it says on it’s website it wants to do this and that !…suppose to be in pharma….has no real business….At March 31,2014 it had no employees (Employee expenses were only Rs 48000! & Revenue only Rs 1.75 lakhs).KMP were Ajay & Vijay Kumar Sachdev & and Jitendra H Gohel.
Equity Issued & Subscribed was Rs 5.1 crs but paid up was just Rs 2.80 crs which included forfeited shares.The Negative Reserves were Rs 2.88 crs giving a negative networth at March 31,2014.The auditor was a Delhi Proprietory Firm M Madan & Co who signed the FY 14 Accounts in New Delhi on August 30,2014.There are barely any other Assets & Liabilities
FY 15 Statements show a different auditor,Ahmedabad based Proprietor S Kansal & Associates who signed the FY 15 Statements in Ahmedabad on April 14,2015,within a fortnight of year closure
The Equity now shows Rs 5.1 crs & Negative Reserves are now lower at Rs 2.02 crs given a positive Networth of Rs 3.08 crs which has been applied to Short Term Advances of Rs 1.42 crs & Other Current Assets of Rs 1.7 crs ~ no info on how the Negative reserves dropped so much given that topline & bottomline figures are worse than Lemon Juice Collections by a Street Vendor !…how did subscribed equity of Rs 5.1 crs which was paid up just Rs 2.80 crs become paid up Rs 5.1 crs? read more
In 1995 IDBI the DFI came out with an IPO at Rs 130.I had given it the notorious sobriquet ‘Instant Death By Investment !’ as the Pricing was way to High.The IPO was bailed out by UTI at the time in a quid quo pro really as then IDBI subscribed to Unit 64 at the high purchase price which was a scam in itself as it was 60% higher than the actual Unit 64 NAV which hovered around par of Rs 10 !
Then in 2004 IDBI the DFI merged with IDBI Bank and in 2010 I had recommended it at Rs 130 in 2010 for several reasons.It did climb past Rs 200 the same year but then disappointed and started it’s downward slide as NPA Demons begin surfacing big time.
Last Month in the second week of February these NPA Demons caused the Share Price to drop below Rs 50
On February 29,2016 our FM made this specific budget phraseology for IDBI :
“The process of transformation of IDBI Bank has already started. Government will take it forward and also consider the option of reducing its stake to below 50 per cent”
It was a no brainer for the Share Price to begin rising the same day from Rs 58 levels to cross Rs 60
It’s now moved up @ Rs 68
Here’s the Share Price Trend of IDBI Bank from 2004 to 2016 (in Rs)
The Book Value of IDBI Bank is over Rs 110 giving the relative Valuation of 0.6….that’s of course one accepts current audited GPA levels of Rs 19615 crs ,that’s 8.94% of Advances and with a 62.92 % of Provision Coverage
Government owns 80.16% of IDBI Bank and if it is open to bring this down below 50% as proclaimed in the Budget by our FM then it begs the question ~ Will they just bring it down but yet retain Management Control or will IDBI really be up for Privatisation and therefore up for Sale ! ?
Quickly the IDBI Employees have voiced their displeasure and threatened to go on strike in the crucial last week of this month of March 2016 which closes out FY 16
Why would the IDBI Employees resist Privatisation or Government diluting it’s stake below 50!?
Seriously ask yourself this ! I reflected and immediately came up two big reasons in my view :
Insecurity of Jobs ~ This is understandable as Employees have huge job security under the Government ~ Bank can Hire but not Fire ~ at best Government can try VRS as they’ve been doing over the years in PSU Banks ~ Connect this with how bloated Government Enterprises really are on workforce be it the Railways or Coal India
Accountability & Transparency in Operations ~ This would open a Pandora’s Box in the Bank for all the NPAs & who really is responsible in the Bank to have advanced Loans that have turned Bad.Of the over Rs 2 lakh crores advances ,the Bank reportedly has an exposure of Rs 7000 crs to the JaiPrakash Group,Rs 15000 crs to the Essar Group and @ Rs 925 crs to Kingfisher Airlines.In fact the ED is investigating Vijay Mallya & his Kingfisher Airlines for Siphoning off @ Rs 300 crs Funds from the Rs 900+ crs IDBI Loan
So will our Government be influenced by the IDBI Employees opposition & not go ahead with it’s plans to sell it’s stake in IDBI Bank to bring it below 50% ?…the Budget already shows FY 17 Disinvestment Target of Rs 36000 crs + Precise Strategic Disinvestment of Rs 20500 crs.This would include IDBI Bank Stake Sale plannedread more
Make no mistake…The 28 year old Russian Maria Sharapova is a stunner as you’ll can see but now she’s stunned all of us with admitting to failing the drug test at the Australian Open in January 2016
I’ve been a great fan of Tennis Superstar Maria Sharapova & willed her on to win everytime she steps on court …even let it be in 2014 when she did not know who Sachin Tendulkar was and later apologised for it !
Her failing drug tests at the Australian Open raises serious Questions
Sharapova says she has been taking Mildronate,also known as Meldonium for 10 years after she was regularly falling ill. She had a magnesium deficiency and family history of diabetes.
She has been provisionally suspended to play Professional Tennis
Big Sponsors like Nike,Porsche & Tag Heur have suspended association with her that will cost her Millions of Dollars Endorsement Fees
While I wish this 28 year old is not forced to retire & does get to play World Grand Slam & ATP Tennis again (she can’t be suspended from wearing a bikini though!) my mind is perplexed with two questions :
For the last 10 Years was Maria Sharapova taking Mildronate also known as Meldonium ,and prescribed by her family doctor,from 2006 because of a health issue as she claims or because it was a performance enhancing drug as identified as such by World Anti-Doping Agency (WADA) and banned from January 1,2016 ? ~ As a Tennis Superstar her Life is always under a microscope .Then why have we not heard of such a Health Issue that she yet must have for such a prolonged 10 years !?
How many such performance enhancing drugs are yet out there which have yet not been identified as such and therefore not yet banned & therefore consumed regularly by sportspeople for unfair advantage when competing ?
Meldonium is used to treat ischaemia: a lack of blood flow to parts of the body, particularly in cases of angina or heart failure
It is manufactured in Latvia and only distributed in Baltic countries and Russia. It is not approved by the Food and Drug Administration for use in the United States and is not authorised in the rest of Europe
It increases blood flow, which improves exercise capacity in athletes
WADA found “evidence of its use by athletes with the intention of enhancing performance” by virtue of carrying more oxygen to muscle tissue
The decision to add meldonium to the banned list was approved on 16 September 2015, and it came into effect on 1 January 2016. Wada had spent the previous year monitoring the drug before adding it to the banned list
The drug was name-checked in the latest investigative documentary on Russian doping reforms by the German Hajo Seppelt . The documentary referred to a 2015 study in which 17% of Russian athletes (724 of 4,316) tested were found to have meldonium in their system
A global study found 2.2% of athletes had it in their system
It is classed as an S4 substance under the WADA code, which addresses hormone and metabolic modulators
The standard ban under the World Anti-Doping Code is four years
A memo was sent out to athletes by Russia’s anti-doping agency last September informing them of the decision to ban its use
Several athletes have been suspended since the turn of 2016 after testing positive for the drug. A few of these are Abebe Aregawi, the 2013 women’s 1,500m world champion ~ Endeshaw Negesse, the 2015 Tokyo marathon champion ~ Olga Abramova and Artem Tyschcenko, two Ukrainian biathletes ~ Eduard Vorganov, a Russian cyclist ~Ekaterina Bobrova, a Russian ice dancer.
Multiple Posts on my views on the KFA Debacle & Vijay Mallya have been categorised above under Kingfisher Airlines ~Machiavellian Mallyas
KFA was my case study at several Seminars & Workshops where I warned that it was on it’s way to becoming like Global Trust Bank that vapourised and the over 2 lakh shareholders should exit immediately and potential aggressive investors should not get seduced to buy into it !
Who will now bell the Cat and reveal why the PSU Banks actually lend to KFA,especially under the intangible Brand which Grant Thornton had valued at ,I believe US $ 750 m! ….. the Banks were unable to monetise this to recover their dues !….no surprise here at all !….makes to recall how E & Y had valued in just One Day(Company Law Board had pulled them up for this) the Properties at a value in the Satyam-Maytas Deal to fill the hole in Satyam Balance Sheet ! ….in fact the Banks even converted Part Loan to Equity at Rs 64 !
Clearly Vijay Mallya’s Proximity to Political Leaders had a hand when the Loans were given & even till date this Proximity is the reason for his continuing arrogance and brazenness ! …. his Rajya Sabha MP Candidature from Karnataka as an Independent was supported by a few Political Parties just to defeat the Nominee of another !
I can only surmise that the Glitterrati,especially those who celebrated with him his 60th Birthday in Granduer, & continue to fawn over him and defend him and his son ad nauseum in columns and on debate panels on TV News Shows have been and/or continue to be beneficiaries of his largesse with public funds,if i daresay ! ~ Nothing is Free !
Shame !!! ~on these 17 Banks & the many years it has taken them to declare KFA & Mallya as a wilful defaulter & seek his arrest….investigate who in the Banks was responsible to lend in the first place !…the truth will be revealed then as to why they lend & who made them !
Shame !!! ~ on those defending Vijay Mallya…a lawyer on a panel says to follow due process of law….another says he will pay !….if the due process of law was followed in time then Vijay Mallya would have been history by now !….the irony is that the victims,the KFA Employees ( a captain on a panel voiced this) want him free so he’s able to pay them their dues….for if he goes behind bars so goes their hopes!….a stock market scamster comes to mind who was arrested & convicted as he owed the banks heavily but has been on bail on an Apex Court Appeal now pending for years and has been able to repay the Banks despite his accounts being frozen ! ~ tacit!? …think about it !….manipulated & rigged stocks & got into trouble….then manipulated & rigged stocks again to repay !….the World is round indeed !read more
Congrats TAP GAP 2016 Winner Pushkar for Kaveri Seeds @ Rs 325 !….In less than 2 months it’s already up to Rs 390 with promise of recovering lost ground
Phew ! it took me quite some time to go through 101 Companies as below that were submitted as below for TAP GAP 2016
Thanks to all of you who send in 101 Company entries by January 15,2016 & for being patient till I declared Pushkar as the winner today !
My single criteria was to assess that which company had fundamental strength to give a 100% return in a tough 2016 ….I also considered if there are vested interests in the scrips who control market trades & I have opted not to go for them….You guys have given me quite a few of these 🙂
I had finally filtered it to selecting from these Five
I have decided that one of Pushkar’s three Choices,Kaveri Seed deserves this years TAP GAP 2016 gauravblog hamper
It’s already up 20% inside two months and we have 10 months to go in 2016 & I’m quite sure that many from the remaining 100 entries too will outperform & as always I promise to also reward the gauravblog hamper to the one whose entry gains the highest % in 2016 as at closing December 31, 2016….unless it’s Pushkar again scoring on one of his other two entries,Larsen & Toubro or Firstsource Solutions ! 🙂
Kaveri Seed is a Debt Free & Cash Rich ( Rs 345 crs at December 31,2015) dividend paying company which has had a tough drop last year .In fact a year ago in March 2015 it was a strong Rs 1077 (52 Week High) and since then dropped to Rs 300 in January this year on the back of two consecutive poor Monsoon that lowered farm income & the Company had to write off more no cotton seed inventory ,largely maize.Q 2 FY 15 saw a bottomline loss of Rs 48 crs on account of this.Also Royalty Dispute with Monsanto remains an unresolved issue for the Industry
A good Monsoon in 2016 will quickly push this Company back into Orbit….it already has got a push with Government Panel proposing a national uniform price for Bt Cotton for 2016 believed to be Rs 800 per 450 gms Bt Cotton packet,incl of trait or license fees of Rs 49.These fees are 74% less than prevailing.It is awaiting acceptance by the Ministry of Agriculture.This should also help remove Royalty overhang.FY 15 Royalty was Rs 159 crs on Sales of Rs 1161 crs.In FY 16 for the nine months the Company has provided just Rs 37.53 crs as directed by State Governments while the actual liability as per agreement with Service Provide Monsanto is Rs 102.51 crs creating a shortfall of Rs 64.55 crs.The matter is pending in Court between National Seed Association of India & Monsanto which will first decide if Government of India indeed has a right to intervene in fixing MSP & Trait Value…If Government wins then Kaveri Seed is also entitled to get a refund of Rs 200 crs from Monsanto for excess Royalty paid till 2015.If Monsanto triumps then Kaveri needs to pay out as of date just Rs 65 crs underprovided.It is Debt Free & has Cash Reserves of @ Rs 345 crs as on December 31,2015 ….but whoever wins it will yet be a win win for the Industry & Kaveri as there will be clarity on Pricing & Royalty….Problem is that Monsanto through it’s Indian JV with Maharashtra based Mahyco,Mahyco Monsanto Biotech has threatened to hold back newer technologies & also re-evaluate it’s presence in India if the Government does not roll back the Plan to cut Bt Cotton Trait Value by 70%….In my view India is too big a Market for Monsanto to ignore & there will be a resolution to this issue
Another Development is a Forensic Audit ordered by SEBI in December 2015 to be conducted by CA Firm Sarath & Associates based in Hyderabad
Company has got a National Footprint with Brand Loyalty in a high barrier industry where it takes strong investment in R & D for seeds and a lead time of 7 to 8 years to commercial production .Q 1 April to June Quarter in any FY is always the crucial quarter as Farmers buy seeds to sow just before Monsoon sets in.Q 1 FY 15 saw Sales of Rs 664 crs down from Rs 827 crs in Q 1 FY 14 & even lower than the Rs 736 crs in Q 1 in FY 13.FY 15 saw 8.4 m packets sold while FY 16 is expected to close under 6 m.FY 17 should see a 20% to 25% climb back.
Market Cap is Rs 1158 crs at Rs 390 => @ One Year Sales…..Book at 31/12/2015 was @ Rs 133 on a Networth of @ Rs 920 crs
Of course there is always the global resentment for increasing use of hybrid seed technology,especially Bt Cotton & for the Monopoly of Monsanto in this and their dictating terms ….that is for another debate though
Here is the List of all 101 Entries and how they have performed till date from your recommended price or January 15,2016 closing taken if lower
Inv. Price (Rs)
Aditya Birla Fashion and Retail Ltd
Alicon Castalloy Limited
Ambika Cotton Mills Ltd
Arrow Coated Products Ltd
Arrow Textiles Ltd
Associated Alcohols and Breweries Ltd
Aurobindo Pharma Ltd
Avanti Feeds Ltd
Bambino Agro Industries Ltd (2)
Bhandari Hosiery Exports Ltd*
Bhilwara Spinners Ltd
Biofil Chemicals and Pharmaceuticals Ltd
Biopac India Corporation Ltd
Butterfly Gandhimathi Appliances Ltd
Capital First Ltd
Capri Global Capital Limited
Coffee Day Enterprises Ltd
LT FOODS LTD
Deccan Gold Mines Ltd
Donear Industries Ltd
Ester Industries Ltd
Future Consumer Enterprise Limited
Force Motors Ltd
First Source Solutions Ltd
Gujarat Borosil Ltd
Shree Hanuman Sugar & Industries Ltd
Heritage Foods Limited
Himachal Futuristic Communications Ltd
Hitachi Home and Life Solutions (India) Ltd
IL&FS Transportation Networks Ltd
Indian Acrylics Ltd
Inox Wind Ltd
Ion Exchange India Ltd
Intrasoft Technologies Ltd
Jagran Prakashan Ltd
JK Paper Ltd
JLA Infraville Shoppers Ltd
Kisan Mouldings Ltd
Kitex Garments Ltd
Kotak Mahindra Bank Ltd
Kaveri Seed Company Ltd
Lakshmi Overseas Industries Ltd
Lincoln Pharmaceuticals Lyd
Lanco Infratech Ltd
Larsen and Toubro Ltd
Manpasand Beverages Ltd
Max Financial Services Ltd
Melstar Information Technologies Ltd
MIC Electronics Ltd
Morepen Laboratories Ltd
Majestic Research Services and Solutions Ltd
Multibase India Ltd
Natural Capsules Ltd
NCL Industries Ltd
Odyssey Technologies Ltd
Pincon Spirit Ltd
Radix Industries (India) Ltd
Rei Agro Ltd
Repco Home Finance Ltd
Revathi Equipment Ltd
Ricoh India Ltd
Rossell India Ltd
Reliance Power Ltd
Rattan India Power Ltd
Sanjivani Paranteral Ltd
Sankhya Infotech Ltd
SKM Egg Products Ltd
Srikalahasthi Pipes Limited
Stylam Industries Ltd
Sunil Healthcare Ltd
Surana Solar Ltd
Syncom Healthcare Ltd
Taneja Aerospace & Aviation Ltd
Tara Jewels Ltd
Tide Water Oil (India) Ltd
Technocraft Industries (India) Ltd
Trigyn Technologies Ltd
Trilogic Digital Media Ltd
TV18 Broadcast Ltd
Udaipur Cement Works Ltd
Ujaas Energy Ltd
UV Boards Ltd
Zydus Wellness Ltd
*Adjusted for stock split
Once again ~ Well Done Pushkar for Kaveri Seed ! ~ I’ve gone with this !
Your gauravblog hamper will soon be on it’s way to you
Disclaimer : Don’t have any direct or indirect interest or holding in Kaveri Seed as of date