Ceat Ltd-Unlocking value ??
Printed From: The Equity Desk
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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=869
Printed Date: 19/Apr/2025 at 7:18am
Topic: Ceat Ltd-Unlocking value ??
Posted By: mukul
Subject: Ceat Ltd-Unlocking value ??
Date Posted: 24/Apr/2007 at 2:08pm
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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
Thus the fair value for investment company will be Rs 376 per share after listing.
VALUATION OF TYRE COMPANY
From FY07 financials
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
 ------------- Growth is Life-I agree |
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Replies:
Posted By: basant
Date Posted: 24/Apr/2007 at 10:51am
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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. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kanagala
Date Posted: 25/Apr/2007 at 2:09pm
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. |
Posted By: basant
Date Posted: 25/Apr/2007 at 2:20pm
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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. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: shontou
Date Posted: 12/Nov/2011 at 8:44pm
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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. ------------- 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? |