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gopal
Senior Member
Joined: 26/Jan/2008
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Posts: 913
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   Topic: Rossell India.... from T 2 aviation & hospitality
Posted: 16/Mar/2013 at 4:56pm |
Dear TEDies, Regarding Rossell India (a small cap stock) I am sharing some data that is available on Rossell India website. Rossell India Limited was formerly Rossell Tea Limited. The Company has diverse interests in Tea, Aviation and Hospitality. To better reflect the diversification of its businesses, and to create a unified brand, the company, on the 19th of April 2011, rechristened itself as Rossell India Limited. Post this rechristening, Rossell India Limited has also restructured itself into three divisions – Tea, Aviation & Defence (Technology and Engineering) and Product Support Services (Aerospace). In the Aerospace and Defence segment, the company has JV’s, partnerships and service agreements with leading OEMs of the world. Apart from this, Rossell India Limited also has strategic partnerships in the Hospitality sector. I will post more details regarding the stock. Webiste of Rossell India Website of Rossell Hospitality You may also visit there page on facebook for any more info. There page on face book is ............. Kebab Xpress or from the Rossell Hospitality website you may directly click on the facebook option / link to connect to there page on facebook. Since I am invested in this stock my views and opnions would be biased towards the stock, kindly do verify any information and then take any decision accordingly. Dear TEDies do give your opinion, advice and feedback on this stock. Thnx & rgds
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Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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rapidriser
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Joined: 18/Nov/2007
Location: India
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Posts: 966
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Posted: 16/Mar/2013 at 5:36pm |
See the segment wise breakup for the latest quarter. Tea accounts for more than 95% of their turnover. The cos performance will purely depend on its tea business. Aviation and Kebab Corner are merely minor distractions.
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When all else is lost, the future still remains. - Christian Nestell Bovée
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master
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Joined: 06/May/2008
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Posted: 16/Mar/2013 at 5:56pm |
A quick look at numbers indicates:
1. But for exceptional gain from divestment in hotel company holdings, 9m perf. is nothing much to write home about.
2. Employee expenses appear to be a drag, not sure if these are one-time benefits.
3. This will mostly be a tea story, that is if you have a view on tea as a commodity.
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Someone’s sitting in shade today because someone planted a tree long time ago.
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gopal
Senior Member
Joined: 26/Jan/2008
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Posts: 913
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Posted: 16/Mar/2013 at 7:57pm |
Originally posted by rapidriser
See the segment wise breakup for the latest quarter. Tea accounts for more than 95% of their turnover. The cos performance will purely depend on its tea business. Aviation and Kebab Corner are merely minor distractions.
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Yes rapidriser, There restaurant / QSR in India is called Kebab Express. Only in november 2012 there base kitchen and first restaurant opened in connaught place. There second restaurant opened in connaught place, new delhi on december 2012. Since there restuarant business has just started in last last quarter, it was not expected to contribute much to the bottom line this year. Also since the initial cost of designing, packaging, branding and furnishings of a restaurant is high it has to some extent also effected the profits or topline of Rossell this year but over a period of time it was also start contributing as a segment to both the bottom line and top line. rgds
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Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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gopal
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Joined: 26/Jan/2008
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Posted: 16/Mar/2013 at 8:10pm |
Originally posted by master
A quick look at numbers indicates:
1. But for exceptional gain from divestment in hotel company holdings, 9m perf. is nothing much to write home about.
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Dear Master, the news to write home about is the starting up of its QSR / restaurant business in India. Yes since the restaurants have just started quite recently in nov / dec 2012 and the company has not some how splashed this news in newspaper or through official media release. In the coming years I think its restaurant business will bear good fruits but it will require patience for a few years.
Originally posted by master
2. Employee expenses appear to be a drag, not sure if these are one-time benefits. |
The reason why employee expenses appear to be a drag is that the company had formally created the hospitality devision in end of year 2011 but the restaurants have started opening in end of year 2012 so although for hospitality division there was expenses but no earnings. Also for some time more the hospitality division might still show high expenses till it breaks even.
Originally posted by master
3. This will mostly be a tea story, that is if you have a view on tea as a commodity. |
Since there restuarant business has just started in year ending 2012, it was not expected to contribute much to the bottom line this year but over a period of time it was also start contributing as a segment to both the bottom line and top line. rgds
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Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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master
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Posted: 16/Mar/2013 at 9:20pm |
Gopal, any idea if they're going to incur capex for these QSR or is it franchisee model. The plan for roll-out in number terms and branding.
Investors would basically be interested how the full blown company will look like beyond the execution risk.
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breeze
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Joined: 24/Apr/2011
Location: United States
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Posts: 124
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Posted: 16/Mar/2013 at 12:27pm |
Gopal, thanks for your work. I will try to get into the details and see if I could understand. Just a quick question, how do they account the profit loss of Nigerian KFC chain? How many KFC outlets do they have now?
Originally posted by gopal
Originally posted by rapidriser
See the segment wise breakup for the latest quarter. Tea accounts for more than 95% of their turnover. The cos performance will purely depend on its tea business. Aviation and Kebab Corner are merely minor distractions.
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Yes rapidriser, There restaurant / QSR in India is called Kebab Express. Only in november 2012 there base kitchen and first restaurant opened in connaught place. There second restaurant opened in connaught place, new delhi on december 2012. Since there restuarant business has just started in last last quarter, it was not expected to contribute much to the bottom line this year. Also since the initial cost of designing, packaging, branding and furnishings of a restaurant is high it has to some extent also effected the profits or topline of Rossell this year but over a period of time it was also start contributing as a segment to both the bottom line and top line. rgds |
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You just have to be opportunistic, and try to figure out what creates value.. where the bottom is, what creates incremental value,
and in what combinations" John Malone
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ZeeNut
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Joined: 07/Jul/2008
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Posts: 38
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Posted: 17/Mar/2013 at 3:31pm |
Devyani International Ltd & Rossel India have jointly invested in RV Enterprises pte, singapore. Devyani International (Nigeria) Ltd is the francisee of Yum Brands in Nigeria. Whether Rv Enterprises Pte holds some stake in Devyani International (Nigeria) i cannot say. But basically it appears to be an indirect (and financial) stake in the foods business by Rossell India. So IMHO that no numbers from the Nigerian company will ever hit Rossel India's books ... at the most if there is a dividend from RV Enterprises, it will come into Rossel India's books. I also agree with the member who pointed out that for the near future, we should treat Rossel as a tea company. Only when QSR / Aviation starts to make a reasonable contribution can we expect a rerating & a different discounting.
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