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Saint Gobain

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1336
Printed Date: 20/Apr/2025 at 8:16am

Topic: Saint Gobain

Posted By: hkumar
Subject: Saint Gobain
Date Posted: 07/Nov/2007 at 12:56pm

An Open Offer Candidate – Saint Gobain Sekurit

Background

Saint Gobain Sekurit is part of Saint Gobain France (A world leader in Glass). They hold about 86% equity. The company is in to Automotive Glazing and Modular Components and customers like Tata Motors, Hyundai Motors, Toyota Kirloskar Motors, General Motors, Mahindra-Renault, among others. The product range includes glasses for passenger cars and MUV’s, Commercial Vehicles, 3-wheelers and bus/coach builders.

It has two manufacturing facilities in Pune (Chakan and Bhosari) and a new facility at Sriperumbudur, near Chennai.

In view of the anticipated growth of the automotive segment in India, work on the state-of-the-art greenfield facility was started in 2004 in Sriperumbudur. The state-of-the-art plant is highly flexible, automated and scaleable. It will have an eventual capacity of 2 million car sets for Laminated Windshields, Sidelites and complex Backlites. The Pune facilities at Chakan and Bhosari are being modernized through significant investments and are dedicated to complex Curved Windshields and Backlites.

The Saint-Gobain Sekurit business in India has shown strong growth in the last 4 years and has captured significant market share. With the state-of-the-art technology and capacity additions planned, SGSI is poised to become the supplier of choice among automotive majors in India in the next few years.

Financials

Financially, the company is not doing very well. In the last 2 years they have invested heavily in their new facility as well as restructuring cost. FY07, they incurred about Rs. 5 crore on VRS. The results for 4 years look like as follows:

				Rs. Mn
Year End	2006	2005	2004	2003
Net Sales	698.97	833.78	732.81	577.86
Net Profit	-105.79	46.14	51.44	48.5
Equity Capital	911.06	911.06	911.06	650.75
EPS	-1.16	0.51	0.68	0.75

This quarter results look like that their efforts on restructuring and investment in new facility has started paying. Following are the unaudited quarter wise results:

Period Ended	30-Sep-07	30-Jun-07	31-Mar-07	31-Dec-06	30-Sep-06	31-Dec-06
Net Profit	4.69	-1.87	-1.17	-79.67	-2.32	-105.79
EPS	0.05	-0.02	-0.01	-0.87	-0.03	-1.16
Operating Profit Margin	13.62	12.32	9.35	-9.64	7.37	1.87
Net Profit Margin	2.65	-1.28	-0.71	-54.45	-1.27	-15.14

With 88% stake of MNC and a possible turnaround story, the stock look attractive at CMP Rs. 27.

Downsides: 1. Substantial accumulated losses

2. No single investor other than Saint Gobain own more than 1% of equity

Questions to TED team.

Views on whether this can be an open offer candidate as many other MNC candidates have turned out.
How does it look as potential growth / turnaround story?

Disclosure: I have a very small stake in the company and have bought some recently as well.

Replies:

Posted By: Vivek Sukhani
Date Posted: 07/Nov/2007 at 10:18pm

who will give the open offer??????? Until and unless something firm emerges on the buy-back front, just ignore this stock. The balance sheet is simply horrendous......

Posted By: hkumar
Date Posted: 12/Nov/2007 at 3:42pm

I am not suggesting buy out but an open offer from the parent company itself which owns 86% of the stock.

As far as Balance Sheet is concerned, I agree that it is in bad shape and that’s why the stock is available at this price. Why I think it’s a good buy is:

Very strong parent with other group companies doing very well
In automotive business with strong presence
Peers like Asahi quoting at Rs. 90/- (FV Re. 1)
Company has invested in another manufacturing unit and has become operational
The company has gone through restructuring exercise and is back in black for the Quarter Sept 07

In my view that it may still take 2-3 positive quarters of good performance to get the stock re rated but given the MNC stock status and automotive business, it has good long term scope.

Posted By: nil5624
Date Posted: 13/Nov/2007 at 11:02am

ITS A **** STOCK

I M HOLDING IT MORE THAN 1.5YRS IT HAS HALFED

VERY BAD TO ENTER AT ANY LEVEL

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PLZ READ THE OFFER DOCUMENT B4 INVESTING.

Posted By: nil5624
Date Posted: 13/Nov/2007 at 11:04am

Originally posted by nil5624

ITS A **** STOCK

I M HOLDING IT MORE THAN 1.5YRS IT HAS HALFED

VERY BAD TO ENTER AT ANY LEVEL

WORST INVESTMENT EVER MADE WITH A SUGAR STOCK LIKE OUDH SUGAR AND THIS **** SAINT GOBAIN

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PLZ READ THE OFFER DOCUMENT B4 INVESTING.

Posted By: hkumar
Date Posted: 15/Nov/2007 at 7:23pm

Originally posted by nil5624

ITS A **** STOCK

I M HOLDING IT MORE THAN 1.5YRS IT HAS HALFED

VERY BAD TO ENTER AT ANY LEVEL

I can understand your sentiments and the stock has done very bad in the past. The point I am hinting at is Sept 07 results suggest that it may be coming out of his bad days and if it does, due to strong parentage...the stock shall be rerated fast.

Posted By: Vivek Sukhani
Date Posted: 15/Nov/2007 at 8:00am

If I have to get into any glass company, it will be http://www.bseindia.com/price_finder/stockreach.asp?scripcd=515145 - Hindusthan National Glass . The only issue is that the dividend is highly inadequate. Do look at their results. This company will not give you any open offer, will not significantly increase dividends but the way the management is getting aggressive, expect some astounding results.

Posted By: EMANI
Date Posted: 17/Feb/2010 at 2:14pm

Saint-Gobain Gyproc India, a market leader in the construction space in India, today announced the launch of Gypsteel Ultra – a high performance range of metal frames for ceilings and walls.

Gypsteel Ultra is manufactured under license by Saint-Gobain http://myiris.com/shares/company/quoteShow.php?icode=MAHGLAAG - (Q , http://myiris.com/shares/news/corporateNews.php?cSelect=5&icode=MAHGLAAG - N , http://myiris.com/shares/company/chartShow.php?cSelect=2&icode=MAHGLAAG - C , http://myiris.com/shares/company/financial.php?cSelect=3&icode=MAHGLAAG - F) * Gyproc India using the Ultrasteel process and is protected by International Patents.

Gypsteel Ultra is formed through a cold rolled pre-forming process that locally work hardens the base material. The steel is driven between two mating rolls to create a unique dimpled surface and ribbing effect across the surface. The major benefits of Gypsteel Ultra include greater load carrying capacity, enhanced screw retention, increased memory/spring tension, improved acoustic and fire test performance and unique appearance to avoid duplication.

Launching the product, Venkat Subramanian, managing director (MD), Saint-Gobain Gyproc India said, ``Through our global network we are bringing the latest tested products which will aid in the growth of dry construction techniques like drywalls. Drywall systems as the name implies are dry construction techniques (water free construction) which is a combination of steel framing and gypsum plasterboard wall surfaces. Drywalls have multiple benefits of being lightweight, faster to construct, provide superior performance in terms of fire, acoustics, and thermal insulation and is a green recyclable product. Besides providing a superior metal framework solution for dry construction, Gypsteel Ultra will effectively compliment our product offering and give customers a distinct value offering.``

Gypsteel Ultra also provides contractors with various installation benefits such as improved productivity and quality, virtually no screw stripping and screw riding, tighter stud to track friction fitting, sight lines on flanges for more precise joints and improved safety by reducing sharp edges and lips.(source:Myiris).The company during the current financial year has shown progressive growth in net profit.The NP for the previous three quartes June, Sept and Dec 2009 is 0.54cr,1.13cr and1.83cr.The company certainly deserves a relook and could be bought.IT IS NOT CLEAR IF SAINT GOBAIN GYPROC IS A SUBSIDIARY OF SAINT GOBAIN SEKURIT.I request our members to CONFIRM.

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esn

Posted By: EMANI
Date Posted: 17/Feb/2010 at 2:46pm

. I am not sure if it is a subsidiary of Saint Gobain sekurit. I request our members to confirm .

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esn

Posted By: kushal.masand
Date Posted: 18/May/2011 at 12:12pm

Promoters decide to delist Saint Gobain Sekurit India from BSE

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Mumbai, May 18 (PTI) Automotive glass maker Saint Gobain Sekurit India Ltd today said its promoters -- Saint Gobain Glass India Ltd and French parent firm Saint-Gobain Securit SA France -- have decided to delist the company from the Bombay Stock Exchange (BSE).
The Board of Directors approved a resolution to this effect at its meeting held today, Saint Gobain Sekurit India Ltd said in a filing with the BSE.
The promoters have agreed to buy-back publicly held shares of the company, constituting 14.23 per cent of the outstanding equity capital, under the SEBI rules to effect delisting, it said.
The promoters plan to buy back shares at Rs 31 apiece, it said.
"The company received a letter dated May 18, 2011 from Saint-Gobain Glass India Limited (SGGIL) informing us of the decision of SGGIL and Saint-Gobain Sekurit SA France to seek voluntary delisting of the equity shares of the company presently traded on the BSE," it said.
The promoters have also advised an indicative offer price of not more than Rs 31 per equity share of the company, it said.
This indicative price is more than 25 per cent above the average of weekly high and low of closing prices for 26 weeks, it added.
The indicative offer price is without any prejudice to the rights of the promoter under the regulations, it said.
The public shareholders have the right to reject the price that is discovered under the reverse book building process if the same is greater than the floor price as determined under the regulations, it said.
The promoters have requested the Board of Directors to take all measures required under the regulations, it said.
The Board approved to seek the consent of the public shareholders of the company for the delisting by conducting a postal ballot in accordance with the provisions of section 192 A of the Companies Act, it said.
Shares of the company closed at Rs 40.70, up 3.69 per cent from the previous close on the BSE.

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Lets roll up our sleeves, and get to the work...

Posted By: kushal.masand
Date Posted: 18/May/2011 at 12:14pm

the offer price is Rs. 31, and the stock is languishing at at around 40 rs.
Now what will happen...
will the stock further rise....
can we take a position to gain few percentage points...
and how much can we gain...
Sone senior members pls suggest the course of actions....

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Lets roll up our sleeves, and get to the work...

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