Friends,
UB Engineering has already doubled at Rs216 from where i recommended..... conservative investor may sell 50% of their holding and should hold remaining 50% as free stocks..... it is a great pleasure to see the free stocks value swelling
There are a lot of expansion plans going forward in uflex... this can prove to be a real multibagger from here also.... i have written down on this stock in past also...
UTV Software has come out with superb result for this quarter..... there is a 11 page pdf file about the earnings on bseindia.com
Here is the link:
http://www.bseindia.com/stockinfo/anndet.aspx?newsid=4b5e033f-3d1b-4db7-9de1-01aee77ede4c
One has to download it and has to read it very carefully..... they have target fo 65% growth in revenues and doubling their PAT(Profit after tax) in FY2011.... i have found something very interesting about UTV Softwares... I am pasting the exact excerpts here(in BLUE COLOR)...
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Over the last 8 quarters we have been steadily investing and growing our businesses: a. Motion Pictures; b. Broadcasting and TV Content; c. Games Content and New Media.
We are pleased to report that we feel good and confident about FY11. Just for record consolidated annual revenues for FY10 were placed at Rs 682 crore, EBITDA at Rs 68 crore and PAT at Rs 50 crore. As against the FY10 performance, the on-going FY11 should see Revenues exceed Rs 1200 crore, a growth of 65 per cent yoy, and EBITDA margins of 16-18 per cent. On a conservative basis profit should exceed Rs 100 crore, with no planned or perceived Equity dilution during the year.
At a much later stage, and when valuations are wealth accretive to existing shareholders UTV will mull listing separately the Boradcasting entity, and/or raise upto Rs 750 crore through a QIP. But as stated earlier, the management does not consider current value of the company as being reflective of it’s inner strength and growth potential and so no placement are perceived anytime soon.
Outlook FY11
A.Motion Pictures
FY11 will have the best slate of movies till date, with the year starting very well with “Rajneeti”.
The two key factors instrumental in shaping a positive outlook are-cost model has achieved optimal and sustainable levels for growth; an internal mandate has been created to pre-sell/Sell all Satellite TV rights on an outright basis for a limited number of years, Audio/Music/ Home Video Rights cover 50 per cent of the costs of producing a new movie and to that extent the movie model has been de-risked.
While Rajneeti is likely to fetch UTV upward of Rs 80 crore, “I Hate Love Stories” will bring in roughly Rs 38 crore. These two will be followed up with “Peepli Live”, “Udaan”, “Guzarish”, “No One Killed Jessica”, “Pan Singh Tomar”, “Chillar Party”, “We Are Family”, “Saat Khoon Maaf”, “Tees Maar Khan”, and “Delhi Belly”.
Pre-sale of TV and Music rights for some of the forthcoming movies have brought in Rs 80 crore, while for FY11 Movies will fetch over Rs 450 crore with an EBITDA of Rs 180 crore.
B. Broadcasting & TV Content
The small screen business comprises 4 channels, TV content production in 6 languages for different broadcasters including Sun TV and a Dubbing Division.
-UTV Bindass is a success with the 15-24 age group.
-UTV Action-Top channel targeted at the young male population.
-UTV World- is a Power brand reaching out to the HNIs, and will compete with established Movie channels like Star Movies and HBO.
-UTV Movies-is a GEC channel with a mix of Ad and Subscription Revenue and a growing reach in the overseas markets.
The programmes being aired on SUN TV, Star Plus, Imagine and Sony are likely to reap in growth rates ranging from 40 per cent to 200 per cent.
On Annualised basis, this segment will bring in Rs 220 crore in Revenues during FY11. Combined, the Broadcast and TV Content will bring in Rs 380 crore for FY11.
C. Games and New Media
UTV Mobile Games is the only online subscription games platform with Games On Demand and has tie-ups for game channels on DTH in India. With a highly cost efficient studio in Vashi-this division is poised to capture opportunities for 3G and 4G in India. IndiaGames should report Rs 50 crore in Revenues and bring in EBITDA margins of 10-15 per cent.
Online Games-With a creative studio in Austin, Texas and a strong backend outsourcing in Beijing, China-the Online Games entity will have 4 games on the floor-the first will be released in August 2010 called Mytheon. This division should bring in Rs 40 crore in Revenues for FY11 with operating margins of 15 per cent.
Console Games-business has a growing publishing business. 5 IPs are ready for launch during FY11 on multiple platforms like PS3, Xbox360 and PCs. This too should bring in Rs 40 crore during FY11 with an EBITDA margin of 20 per cent.
New Media-is still in the nurturing stage.
I have some good reports about UFlex that contains each and every expansion plan..... I cant upload those reports here... If anyone wants them then i can be reached at my email ID.....
Keep and eye on Pennar Industries as well.....
Also, KP Capital is going great... reached 493 levels............. Enjoy....
Dear Mr Deepak
ReplyDeleteIam very much interested in Uflex
can you please send the detail expansion report to my emaii-id
nirash2006@yahoo.com
Thanks in advance
regards
nirash
DD Sharma, head of research, Anand Rathi Securities, in a chat with ET Now talks about Uflex.
ReplyDeleteWe have talked in the past about getting some of the niche small cap, mid cap ideas which are undervalued and have the potential of outperforming the broader markets. Is there anything that you have lately identified, maybe a couple of stock ideas?
Yeah, last week only we have identified one very interesting stock idea in the midcap segment. This is the Uflex Company. Uflex is a fully integrated comprehensive flexible packaging company. This company makes the flexible packaging from as low as polyester chips. They make polyester chips, polyester film, BOPP film. They quote, materialise and print it and they make the packaging machinery also and finally pack the products for the FMCG companies.
So it is catering to the FMCG industry which is recession proof and that is why this company even grew during 2008-2009 when most of the companies suffered and this company grew by 70% in bottom line terms in 2008 and 2009 also. It is highly undervalued stock and this is not a really very small stock. It is quite a big company. It had 2000 crores turnover last year. This year also they are likely to report more than 2000 crores turnover and they are expanding very well.
Valuations wise, the company is likely to report consolidated earnings of around Rs. 32 to Rs. 35 in FY10 and in my view looking at the expansion plans they are having the new capacities commissioned in Mexico and Egypt, this company is likely to report a turnover of 2500 crores in FY11 and EPS of close to Rs 50 in FY11 and yet the stock is available at around Rs 121-122 which is highly undervalued because it is market leader in flexible packaging in not only in India, in Asia. Therefore, it deserves a better rating or better valuation.
I do not see any institutional investor interest in this stock. No institution seems to be really owning this stock. Is this just an undiscovered gem?
Maybe it is undiscovered and that is the proposition I am looking for. Right now its market cap is around Rs 800 crore. Once the market cap crosses Rs 1000 crore, then this stock will come into the radar of many funds and institutions and then they will find that this company which is into a recession proof industry which is has a sizable turnover, sizable profit and highly undervalued. Tthen it may be re-rated by the market and in that case, a discounting of 10 times for this company is very much possible. In that case in next 12 to 24 months, this stock may double or even quadruple.
Are there any other ideas you have in the midcap space?
All other ideas which become old and have appreciated significantly, there is no point in discussing them. Last time when we discussed Garware Poly, it was just Rs 54-55 and right now it is close to Rs 100. It even touched Rs 108-110 last week only. So there is no point discussing that stock now.
It is still in Uflex itself that I would like to point out some more observation. One is that company's domestic operation is located in Noida wherein they have significant surplus land also and land cost in the Noida Sector 4 is close to Rs 1 lakh per square meter. So valuation of this land alone where their plant is situated is more than Rs 800 crore whereas company's market cap right now is Rs 800 crore. So that will give additional push into the stock price for downside. So downside protection is significant means risk-reward is fantastic, your downside is very low and your upside is significant.
Thanks for info Nirash...
ReplyDeleteI knew this.... actually it is truely a undiscovered stock... when it will move every1 will chase it....
you to to hold it and have to wait....
Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
ReplyDeleteGalactico IPO