Surya Roshni
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=2241
Printed Date: 20/Apr/2025 at 8:26am
Topic: Surya Roshni
Posted By: smartcat
Subject: Surya Roshni
Date Posted: 16/Jul/2009 at 12:06pm
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Has anybody taken a look at Surya Roshni too? They make bulbs, tubes, CFLs, HID lamps, casings, home decorations, street light poles, MCBs etc.
They don't have a 'project division' like Bajaj electricals though, but their FY09 numbers look fairly impressive (especially when looked at it from its current market cap perspective).
Sales: Rs. 1700 crores
EBIDTA: Rs. 100 crores
Net Profit: Rs. 21 crores
RoE: 12%
Market cap: Rs. 100 crores
P/E: Rs. 4.5
P/BV: 0.50
Dividend yield: 4%
The only party pooper is the NPMs, which is at an incredibly poor 1% levels. This can be seen either as an opportunity (a small increase in margins will result in galloping profits) or as a threat (a small decrease in margins will result in walloping losses).
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Replies:
Posted By: nav_1996
Date Posted: 16/Jul/2009 at 12:14pm
| NPM has been this way for last 5 years I have been tracking it. It always looked a calssical value but has remained that way. |
Posted By: nitin_jagtap
Date Posted: 16/Jul/2009 at 12:22pm
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They were also stories of unlocking of value from the land bank ....wonder if that story is still doing the rounds. ------------- Warm REgards Nitin Jagtap |
Posted By: smartcat
Date Posted: 16/Jul/2009 at 12:29pm
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If NPMs have remained that way for long stretches of time, then it is not such a bad thing - as long as sales, net profits and EPS are growing.
I wonder if these guys are "trading" (buying from small scale industries & selling at a slightly higher price after putting their brand on it) rather than manufacturing - that could explain their consistently low margins.
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Posted By: Hitesh Shah
Date Posted: 16/Jul/2009 at 12:52pm
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They claim to have their own plants. http://www.suryaroshnilighting.com/default.asp - Source .
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Posted By: 9StockPortfolio
Date Posted: 16/Jul/2009 at 12:54pm
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debt is too high. i will ignore
------------- Pursuit of Value |
Posted By: prabhakarkudva
Date Posted: 16/Jul/2009 at 1:10pm
| Low margin businesses should not merit investments unless sales are phenomenally high and unless the player leads market share and will continue to do so. |
Posted By: smartcat
Date Posted: 16/Jul/2009 at 2:00pm
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Read the FY08 annual report and made some discoveries. Actually, when you buy Surya Roshni stock, you get their steel, lighting and real estate businesses.
Their main website is http://www.suryaglobal.com/ - http://www.suryaglobal.com/
For FY08, their steel division had a turnover of Rs. 1050 crores and a PBIT of Rs. 26 crores, while their lighting division had a turnover of Rs. 350 crores and a PBIT of Rs. 29 crores.
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Posted By: rapidriser
Date Posted: 16/Jul/2009 at 8:02am
This was an old Ramesh Damani favourite in 2006 & 2007. He seems to have given up on it after it failed to take off in either price or performance.
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Posted By: smartcat
Date Posted: 16/Jul/2009 at 10:34am
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hehe.. that's his old "kiss all the frogs you find - one of them will definitely turn out to be a beautiful princess" strategy. |
Posted By: Hitesh Shah
Date Posted: 16/Jul/2009 at 11:02am
Thank you, SmartCat jee  ! This is so much more easy to understand than intrinsic value on the one hand and Elliot Wave on the other. Of course, on the third hand, there's always the Mexican Wave.------------- |