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Message Icon Topic: Ceat Ltd-Unlocking value ?? Post Reply Post New Topic
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mukul
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Quote mukul Replybullet Topic: Ceat Ltd-Unlocking value ??
    Posted: 24/Apr/2007 at 2:08pm
Restructuring to be done as follows
i. The Investments Business of the Company would be hived-off to another Company.

ii. The share capital of the Company would he restructured as under

In lien of 100 Company shares held, the existing shareholders will be entitled to:

a. 75 equity shares of Rs 10/- each fully paid up of the Company (existing Company)

and

b. be issued 25 equity shares of New investment Company of Rs 10/- each fully paid up

iii. There will not be any change in the shareholding pattern of the Company (mirror image)

iv. The Promoter's stake remains unaltered.

v. The Company to focus on Tyre Business alone in future.

vi. The restructuring scheme is aimed at unlocking value for the share holders of the Company.

vii. Both Company's shares would he listed at BSE/NSE.
                                                                Post Demerger
                                    Ceat Ltd       Tyres         Investment       
No of shares                 4.57 Cr            3.42 cr        1.14 cr            
CMP                               143
Mkt cap(Rs Cr)              653
 
Value of quoted investments
 
No of shares
     Mkt        Price          (Rs)
Value (Rs             Cr)
CESC
2056794
383
79
CFL cap financial services
3837500
3
1
Harrisons Malayalam
728150
71
5
KEC International
3128298
557
174
KEC Infrastructure
3128298
24
7
Phillips Carbon Black
1903114
156
30
RPG Cables
2200280
47
10
RPG Life Sciences
1064560
91
10
RPG Transmission
2282000
206
47
Saregama India
253444
203
5
Zensar Technologies
2222138
275
61
TOTAL MKT VALUE(Quaoted Investments)
429
No of shares in Demerged entity
 
1.14
Value per share( In Rs)
 
 
          376
 
Thus the fair value for investment company will be Rs 376 per share after listing.
 
VALUATION OF TYRE COMPANY
From FY07 financials
 
Ceat
Net sales
2134.78
Expenditure
2006.81
Operating profit
127.97
Interest
60.43
Gross profit
67.54
Depreciation
31.06
PBT
36.48
Tax
21.67
PAT
14.81
No of shares
3.42
EPS                            (a)
4.325039
PE-Assumed*             (b)
14
Fair  mkt price     (a)x(b)
61
 
Assumed PE of 14 is the composite PE of industry as per Capital Market. Apollo Tyres also has PE of 13.9
 
Thus, it can result in huge unlocking of value. The investment division when listed will offer exit route to existing shareholders who dont wish to continue with investments and will improve tyre segment performance Also improved ROCE
 
Kindly give Your views on this
 
Smile
 
 


Edited by mukul - 24/Apr/2007 at 2:21pm
Growth is Life-I agree
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basant
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Quote basant Replybullet Posted: 24/Apr/2007 at 10:51am
Though I had a quick look somehow the Goenka management dissolves all the good things we see on the company. Never ever has this management been able to create shareholder wealth will they be different this time is more important to think.
 
Data makes the company look attractive except the concern listed above.
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kanagala
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Quote kanagala Replybullet Posted: 25/Apr/2007 at 2:09pm
Originally posted by basant

Though I had a quick look somehow the Goenka management dissolves all the good things we see on the company. Never ever has this management been able to create shareholder wealth will they be different this time is more important to think.
 
Data makes the company look attractive except the concern listed above.


Hi Basant sir,
I recently read some where that, minority share holders should not give much waitage to investments made in group companies. Typically, these are strategic in nature.

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basant
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Quote basant Replybullet Posted: 25/Apr/2007 at 2:20pm
Hi Basant sir,
I recently read some where that, minority share holders should not give much waitage to investments made in group companies. Typically, these are strategic in nature
_________________________________________________________
 
Yes that is true because the management will never sell it.
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shontou
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Quote shontou Replybullet Posted: 12/Nov/2011 at 8:44pm
Conference Call      
          CEAT
Expects softening rubber prices to reflect in Q4FY12 financials


CEAT came out with financial performance for the quarter ended September 11 and conducted concall on 9 November 11 to discuss financial performance and the prospects of the company. Anant Goenka Deputy Managing Director, Suni Sapre CFO addressed the call

Highlights of the call
CEAT has reported another dreary set of results for the quarter ended September 11 with 63% dip in the Net Profit at Rs 5.61 crore over healthy 33% jump in the total income from operations at Rs 1118.01 crore.
Net Profit margin declined to 0.5% against 1.8% in the corresponding previous year.

The revenues from replacement market increased 14% to Rs 730 crore, OEM by 57% to Rs 191 crore and Exports by 90% to Rs 271 crore in the quarter under review. While the volumes remained flat at 60,000 MT, the price hikes taken in Q1FY12 were realized fully in Q2Fy12 and thereby resulted in spike in revenues.

The company has not taken any price hike in Q2FY12.
The Halol Plant is ramping up from an average of 36 TPD in quarter ended June 11 to 50 TPD in quarter ended September 12. At end of September 11, Halol plat was operating at 60TPD (500 truck radials and 2600 PCR per day).

Net sales from Sri Lankan operations improved 18% to Rs 107 crore and that of PBT stood at Rs 8.5 crore in the quarter under review.

The Average prices of Raw materials in the quarter are as follows: Rubber Rs 210-215 per Kg, NTCF Rs 250-270 per Kg and Carbon black Rs 63-74 per Kg.

With 23 days of plant shut down at Nasik, and subdued demand in the replacement market, the company expects Q3Fy12 to be subdued.

The company expects softening of raw material prices, particularly in Natural Rubber will be shown clearly in Q4FY12 results.

Edited by shontou - 12/Nov/2011 at 8:45pm
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
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