Apex frozen  –

Apex have 15000 MTPA capacity , where they have taken 6000 MTPA capacity on Lease from Royal Marine.

They are coming up with capacity of 20000 MTPA at end fy 18.

They paid 100 million as processing charges to Royal marine in fy 17.

5000 MTPA in the new capacity is for high value cooked products.

Due to saving on processing charges of 100million and addition of high value products the margin will expand. 

Capacity utilization of 48% in fy 19 and 71 % in fy 20 is expected.

One can feel if a company has taken 63% capacity on lease, then it is surely expecting a lot more growth and have ample orders in hand .

With EPS estimate of 16 in fy 18 and 22 in fy 19 there is room for ample growth .

The business model is different than of Avanti feeds as  in avanti major part of revenues comes from feed where as in APEX shrimp processing is major revenue source.

Only risk in shrimp sector is natural calamities in terms of cyclone and spread of disease so these factors have to be taken into stride.  

CENTRUMCAPITAL – AGM NOTE .

CENTRUMCAPITAL – AGM NOTE .

I attended the AGM yesterday, sharing my observations –

MFI -

Company will receive MFI license in a months’ time  and are planning to take over a MFI company.

As after demonetization valuation of MFI companies have come down by 1/3^Rd so it best suited for the company to buy a MFI business.

Company want to enter MFI as it will felicitate the social engagement , which in turn will make them eligible for various licenses they will apply in future, (here the hint is that 3-4 years down the line company may apply for banking license). UJJVAN and EQUITAS got banking license as they had strong presence in MFI sector.

HFC –

12 branches are operational in M.P and Gujurat and now entered Maharashtra by end Fy 18 they will have 20 branches in HFC division .

In cities like ANAND , BHARUCH , UJJAIN ,NAGDA no financial instutition is lending to NON salaried class which is huge market.

Motilal oswals HFC arms Aspire lends to NON salaried aggressively in pune and other cities that is one of the reason that they have grown very fast .

In my view in next 1 year per branch can easily disburse 80-100 crore which can take the HFC loan book to 1500 -1800 crore.

Forex -

Company is  very bullish on forex business and will continue expanding that.

Presently 23 million people are travelling and are expected to go upto 100 million in next 10 years.

SME Lending –

Huge part of MSME segment is still not financed by the banks and NBFCs, company is bullish on SME sector too .

Mr bindra said that when economy is growing by 6-7 % then the leding sector grows by 3x i.e 18-21 %

So the opportunity is huge and they plan to expand keeping risk and NPA’ in control.

Presently company have staff size of 2000 people and growing .

Mr bindra said that company is very well placed for capex for next 5 years.

PROMOTER HAVE PLANS TO HIKE STAKE IN THE COMPANY

I feel there are much better days ahead for the company and shareholders.

YASH PAPERS : Have all traits of a multibagger

YASH PAPERS –

Company came out of CDR and have invested 54 crores in the new plant

They have launched a moulded paper product segment where they are making various sizes Plates,Bowl,Containers,Lids & Trays under Brand name is Chuck.

Its made from bagasse a by product after sugarcane crushing in sugar plants.

Company’s plant is in UP and they get ample baggase at almost free.

Company already supply paper carry bags and paper trays to MacDonald’s, Kfc , pizza hut ,Waco and yum.

They have big order in hand from us market for Paper tray products and have started supplying to the US markets .

CHUCK is a high margin product which will improve overall margin of the company.

Fy 18 they are expected to do 225 crores sales and 14 -17 crore pat.

So We are getting the company at 5 PE of fy 18 Earnings.

Promoter have allotted 29.3 lakhs warrants in July 2017 Which is 9% of equity So the promoter shareholding will go substantially up .

Recently there is institutional interest in the company and some share placement may be done soon.

BIG POSITIVES : GST COLLECTIONS & DOLLAR INDEX SETUP

BIG POSITIVES : GST COLLECTIONS & DOLLAR INDEX SETUP 

Biggest positive new in midst of Turmoil is GST colletions for July have exceeded targets whereas only 64% firms could file returns .

Checked with local CA offices as there is still some confusion in filing returns and CAs are over burdened that why all returns could not be uploaded on time.

Most of the Unorganized sector has not come under GST till now .

Real impact will come once the E WAY BILLs are implemented in NOV – DEC 2017 then most of unorganized guys will have no option but to get registered for GST .

Governments Tax collection is expected to improve substantially resulting improved TAX to GDP ratio and In turn improved RATINGs by foreign rating  agencies .

Another positive is – DOLLAR index near breakdown pattern on charts,if it happens then the fund flows to emerging markets will resume .

USA economy is continuing to improve on various parameters and investors are neglecting the war threat with N korea. 

CENTRUM CAPITAL - Road Ahead for promising Diversified NBFC.

CENTRUM CAPITAL - Road Ahead for promising Diversified NBFC.
I had shared the buy call on 1 feb 2017 when the price was 35/- now it has run up to 72 levels and stock being put in T2T segment , so whats the path ahead ??

I feel that it can be compared to the like of uniply where there was a management change in feb 2015

Mr keshav Kantamneni bought a 36% in the company and drove the company to profitability and growth.

During the entire phase the valuation looked too stretched But the investors who had conviction held on to it and reaped rich benefits, at the later stages seasoned investors like Ramesh damani and R.k damani invested in the company. In 2.5 years the stock is a 25 bagger.

There is management change in centrum capital too and “Jaspal Bindra” a seasoned banker with vast experience has taken control and has invested 90 crores of his own money to buy 20% in the company.

Centrum capital is into following verticals –

Forex services – They are among the top players in India.

Investment banking

Stock broking

Wealth Management

Insurance

SME finance – Started in Fy -17

Housing Finance- Started in fy -17 -

PE fund – Kalpvriksha with 500 crores.

Micro Finance – have applied for micro finance license and expected to get it in 3-4 months.

They have appointed CEO’s for various verticals, hiring and branch expansion is going at rapid pace and

Spoke to few employees, this year the increment & bonus was good and the mood is very upbeat in the company, it’s a matter of time that the performance will be there.

Centrum is a well-known brand and has presence throughout the country with 135 branches in 46 cities

They can surely leverage the brand and can utilize the huge existing customer base.

In a recent interview with stallion Asset Rashesh shah of edelweiss has mentioned -

Edelweiss wants to create a 1,00,000 Crore loan book divided in 10 verticals so they can stop lending as risk increases, or increase lending in a vertical as opportunity increases. We believe a diversified NBFC is atleast 5x more safer than a concentrated one segment NBFC and deserves a higher valuation. Full interview can be read here https://www.stallionasset.com/blog/edelweiss-investor-day/ - this is a very insightful interview to understand the future of NFBC sector in India. 

I believe centrum is also going in the edelweiss way where they want to grow in different verticals and establish themselves as a strong Financial Institution in the long term.

Market is bound to get excited with the news announcements by the company at various times and the valuations  may seem stretched in short term but if one can have patience and can hold on for 4 -6 quarters then the Nos will also start showing. 

CREST VENTURES -
Highly undervalued ,Expansion In Real Estate , Diversification in Financial sector.

Cmp - 179
M CAP - 465 crore
PAT - fy 16 - 37.19 cr
Pe - 10.21
Promoter holding- 65 %
Core group holding - 75%
Recently raised 43.4 cr from Right's issue.
Real estate play and going aggressively into financial services .
Vikram kotak joined their wealth management subsidiary and picked up 4.5 % stake in oct 2016
@ 70 /-
They will be getting a housing finance license soon and have big plans for financial sector .
Company have 40% stake in edelweiss fund management which is a subsidiary of edelweiss financial .
Heard that their subsidiaries are worth more than 1000 crore .

As they were the developers and jv partners for Phoenix market city Chennai and palladium mall chennai
The have stake in the properties and receives healthy rental income .
Rental annuity income of 70 -80 crore is expected in next two financial years ..
they have various completed and ongoing residential and commercial projects.
Company have sizeable land bank in various cities which they hold through the subsidiaries .
promoter increased shareholding by 8 % in Dec quarter  and it is seen that a big accumulation is going on. 

CENTRUM CAPITAL: GROWTH ENGINE under JASPAL BINDRA ex Stanchart CEO

Group of PE investors led by Jacob Ballas bought 30% stake in Centrum Direct by paying 340 crores.  This deal values Centrum Direct alone at 1000 -1100 CR.. Market cap of centrum capital (which holds 100% shares of centrum direct) is 1500 CR..

Funds may be utilised for housing finance biz and SME finance.. They also have formed an equity fund of 500 CR to fund SmE & mid size cos..

Ex stanchart Asia CEO Jaspal Bindra have joined the company as a chairman  in 2016 by picking up near about 18-20 % stake in the company.

Recently the promoters hiked stake in centrum .

On ground they have appointed CEOs for various business and hiring is going on in full speed .

Got housing finance license and have appointed sanjay shukla ex CEO of centbank home finance.


http://www.livemint.com/Companies/HeH0FBceT5fdGOhsLGig8O/PE-investors-buy-stake-in-Centrums-forex-business.html