KS OIL
 
  

 
 

SHARETIPSINFO >>Research Reports >> K S OIL (03-02-2009)

 

LISTING
CMP
Rs 41.85
52 WEEK HIGH/LOW
Rs 100/Rs30
FACE VALUE
Rs 1
Market Cap.
Rs 1514 CRORE
PE
9
BETA
1.1

 

COMPANY OVERVIEW:
K S OIL established in 1985 is today India’s leading integrated edible oil company. K S OIL is promoted by Garg family. Company is leader in the mustard oil in India, K S OIL today enjoys 7% market share in the overall mustard oil segment with a dominant 25% market leadership in branded mustard oil.


Various Brands:
Mustard Oil-Kalash
Mustard Oil-Double Sher
Refined Oil-K S Soya Refined
OIL-K S Gold
Vanaspati- K S Gold Vanaspati
Vanaspati –K S Gold Plus

Distribution Network:
K S Oil reaches the final consumer through 450 distributors and 45000 retailers. K S Oil prefers rail to road for reaching its finished product. It also has major depot at major railway arrival points.

INDUSTRY OVERVIEW:
The size of edible oil industry is pegged at Rs 600bn of which mustard oil accounts for 20% (120bn). The industry is expected to grow at rate of 6% pa. Within the industry the branded segment today accounts for 15% of the market share and is growing at rate of 20%.
India has the fourth largest edible oil industry in the world after USA, China and Brazil and accounts for 7% of the global production and 10% of the global consumption each year.
Today northern and eastern Indian states are the largest consumer of the edible oil. This state consumes around 80% of the total mustard oil.

K S OIL SALES BREAK UP:

 

 

 

FY2008

2QFY2008

2QFY2009

%CHANGE

BRANDED

 

 

 

 

 

1.DOUBLE SHER

 

349.8

85.3

138.7

62.70%

2.KALASH

 

 

420.8

98.5

140.4

42.50%

3.KS REFINED

 

407.6

82.8

165.3

99.70%

4.KS GOLD VANASPATI

47.2

10.3

17.6

72.10%

UNBRANDED

 

 

 

 

 

1.LOOSE MUSTARD OIL

198.4

53.3

58

8.80%

2.LOOSE REFINED OIL

149.8

48.8

53.4

9.90%

OTHERS

 

 

467.1

61

159.9

162.70%

TOTAL

 

 

2040.7

440

733.3

66.80%

SHAREHOLDING PATTERN:

 

 

NO. OF SHARES

% OF TOTAL

PROMOTER

136197478

 

38.23%

 

INSTITUTION

41998637

 

11.79%

 

GENERAL PUBLIC

178078375

 

49.98%

 

GRAND TOTAL

356274490

 

100%

 

FINANCIAL:

 

 

31/03/05

31/03/06

31/03/07

31/03/08

TOTAL INCOME

455.65

604.68

1073.6

2051.57

EXPENDITURE

-441.29

-575.54

-979.77

-1815.84

OPERATING INCOME

14.36

29.14

93.83

235.73

DEPRECIATION

-2.53

-2.85

-4.24

-11.94

PBIT

 

11.83

26.29

89.59

223.79

INTEREST

 

-7.71

-7.84

-14.96

-38.44

PBT

 

4.12

18.45

74.63

185.35

TAX

 

-0.76

-2.4

-13.4

-62.65

PAT

 

3.36

16.05

61.23

122.7

CHANGE IN TOTAL INCOME: CAGR IN TOTAL INCOME FOR 4 YEAR PERIOD IS 65.1%.

CHANGE IN OPERATING PROFIT: CAGR IN OPERATING PROFIT FOR 4 YEAR PERIOD IS 154%.

CHANGE IN NET PROFIT: CAGR IN NET PROFIT FOR 4 YEAR PERIOD IS 231%.

RATIOS:

 

 

31/03/05

31/03/06

31/03/07

31/03/08

 

EPS

0.094382

0.450843

1.719944

3.446629

 

OPM

3.151542

4.819078

8.739754

11.49022

 

NPM

0.737408

2.654296

5.703241

5.980785

INTEREST COVERAGE

1.534371

3.353316

5.972667

5.8218

Q3 FY2009 COMAPRISON WITH Q3 FY2008:

 

 

Q3FY2008

%CHG

Q3FY2009

TOTAL INCOME

565.39

47.90%

836.19

EXPENDITURE

-504.42

 

-744.47

OPERATING PROFIT

60.97

50.43%

91.72

DEPRECIATION

-3.09

 

-6.75

PBIT

 

57.88

 

84.97

INTEREST

 

-8.48

 

-19.4

PBT

 

49.4

 

65.57

TAX

 

-16.97

 

-22.49

PAT

 

32.43

32.83%

43.08

TOTAL INCOME INCREASED BY 47.9% IN Q3FY2009 AS COMAPRED TO Q3FY2008.
OPERATING PROFIT INCREASED BY 50.4% IN Q3FY2009 AS COMAPRED TO Q3FY2008.
NET PROFIT INCREASED BY 32.38% IN Q3FY2009 AS COMAPRED TO Q3FY2008.

VALUATION&OUTLOOK:
At CMP the stock is trading at 9x to the FY2009E earning and 6x to the FY2010E earning. We expect the stock to trade at 8 x that makes the fair value Rs 58.8. SO there is good upside in the stock.

CONCLUSION:
Investors with medium to long term outlook could take position on the counter. The time horizon is one year.

 

 

 

 

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