SANWARIA AGRO OIL Ltd.
 
  

 

 

SHARETIPSINFO >>Research Reports >>SANWARIA AGRO OIL LTD (21-08-2009)

 

LISTING
CMP
Rs61
52 WEEK HIGH/LOW

Rs13.25/Rs101.95

FACE VALUE

Rs10

PE RATIO

20

AVERAGE VOLUME
8965
MARKETCAP

Rs1125 crore

COMPNAY OVERVIEW:
Sanwaria Agro Oils Limited was incorporated on 22nd April, 1991 having its registered office at Itarsi and having corporate office at Bhopal. SAOL had set up a solvent extraction plant with crushing capacity of 200 Tons Per Day of Soyabean & other minor oil seeds at Industrial area , Kheda Itarsi and commenced commercial production from 5th Decembe,1993. .

In August 2001 the Company has setup a refinery with the capacity of 75 Tons per day . The Company had also received 'BEST CAPACITY UTILIZATION AWARD' from SOPA from financial year 98-99 to 2001-2002 as the company had achieved 103% capacity utilization as against the Industry average of 35 %. Subsequently the soya crushing/refining capacity of the company has been expanded further which is 1000/150 MT per day as on date. The expansion of the capacity was wholly financed by internal accruals.


PRODUCTS MIX:


PRODUCT

SALES(In crore)

% of Total Sales

De-Oil Cakes

Rs534.24 crore

56.85%

Oil Refined

Rs184.73 crore

19.65%

Foddgrains

Rs159.07 crore

16.92%

Oil Soya

Rs46.8 crore

4.98%

Other

Rs13.27 crore

1.41%

Power Generation

Rs1.51 crore

0.16%

INVESTMENT RATIONAL:
A growing population and vastly varied dietary habit ensures thriving market for oil in the country.
Rising prices of agro product will ensure good margin.
Use of oil for bio fuel will also add to the increase in demand of soya oil.


SHAREHOLDING PATTERN:

 

 

NO.OF SHARE

% OF TOTAL

PROMOTER

121880804

 

70.04%

 

INSTITUTION

610014

 

0.35%

 

GENERAL PUBLIC

51534182

 

29.61%

 

GRAND TOTAL

174025000

 

100.00%

 

FINANCIAL:

 

 

31/03/06

31/03/07

31/03/08

31/03/09

TOTAL INCOME

221.57

447.6

941.21

1115.64

EXPENDITURE

-213.82

-423.7

-863.06

-1029.76

PBDITA

 

7.75

23.9

78.15

85.88

DEPRECIATION

-0.97

-1.78

-2.51

-5.6

PBIT

 

6.78

22.12

75.64

80.28

INTEREST

 

-2.02

-4.32

-11.26

-11.81

PBT

 

4.76

17.8

64.38

68.47

TAX

 

-0.76

-4.91

-10.07

-15.98

PAT

 

4

13.61

54.31

52.49

Key Highlights:
CAGR IN TOTAL INCOME IS 71.3%.
CAGR IN PBDITA IS 123%.
CAGR IN NET PROFIT IS 135%.

RATIOS:

 

 

31/03/06

31/03/07

31/03/08

31/03/09

EPS

 

0.229885

0.782184

3.121264

3.016667

PBDITA MARGIN

3.497766

5.339589

8.303142

7.697824

NPM

 

1.805299

3.040661

5.770232

4.704923

INTEREST COVER

3.356436

5.12037

6.717584

6.797629

Key Highlights:
EPS has grown at CAGR of 135%.
PBDITA margin has shown consistent up move.
NPM too has shown up move.
Interest cover too has grown up showing less reliance on debt.

COMPARISION OF Q1FY2010 WITH Q1FY2009:

 

 

Q1FY2009

% CHANGE

Q1FY2010

TOTAL INCOME

274.61

-47.24

 

144.88

EXPENDITURE

-250.11

 

 

-128.79

PBDITA

 

24.5

-34.30%

 

16.09

DEPRECIATION

-1.32

 

 

-1.39

PBIT

 

23.18

 

 

14.7

INTEREST

 

-3.61

 

 

-2.66

PBT

 

19.57

 

 

12.04

TAX

 

-4.04

 

 

-1.96

PAT

 

15.53

-35%

 

10.08

KEY HIGHLIGHTS:
Total Income for Q1FY2010 fell by 47%.
PBDITA down for Q1FY2010 by 34%.
PAT down for Q1FY2010 by 35%.
Net sales declined due to the closure of two plants for annual maintenance.

VALUATION:
We expect the EPS for FY2010E to be around Rs4.Looking at the fundamental and the ongoing boom in the commodity, we value the company at 20X. The fair value we arrive at is Rs80. There is upside of 20% from the current level.

CONCLUSION:
Investor should start accumulating the counter at the current rate for upside of 20%. Downside risk seems to be limited. The investment horizon is 6 months.

 

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