PRIME FOCUS LTD CMP 50.65

Prime Focus Limited

Prime Focus provides a complete spectrum of innovative creative and technical services to the Film, Broadcast, Advertising and Media industries. Our end-to-end offering ranges from pre-production to final delivery, including visual effects, creative 3D conversion, animation, video and audio post-production, digital content management and distribution, Digital Intermediate, versioning and adaptation, and equipment rental. Prime Focus Limited has a highly skilled workforce of 4,200 personnel in India. Worldwide, the group works across 3 continents at 19 facilities. We operate a network that combines global cost advantages, resources and talent pool with strong relationships and a deep understanding of the local markets we operate in. A tailored approach to each project ensures the delivery of a superior level of service aligned with a highly competitive pricing structure.
Prime Focus offers three specialised business divisions catering to its key markets:

Prime Focus World

Prime Focus World is a leading global technology services company providing comprehensive creative and technical services to the film, broadcast and advertising industries. Providing 2D to 3D conversion, visual effects and animation services for major media and entertainment companies, Prime Focus has brought its expertise to many wide release Hollywood films, including Men in Black 3, Star Wars: Episode One – The Phantom Menace, Dredd 3D, Total Recall, Tim Burton's Frankenweenie, Harry Potter and the Deathly Hallows: Part 2, Narnia: The Voyage of the Dawn Treader, Resident Evil: Retribution, Green Lantern, Immortals, Mirror Mirror, Transformers: Dark of the Moon and Avatar. Prime Focus World has global operations with a presence in key centers of creative content production – Los Angeles, New York, London, Vancouver and Mumbai.

Prime Focus Group

Prime Focus Group offers the best in Creative Services and Post Production for broadcast, commercials, independent film and more. From New York to London to Mumbai and beyond, Prime Focus’ global network of facilities work together to deliver superior creative and technical visual entertainment services to its diverse client base.

Prime Focus Technologies

Prime Focus Technologies (PFT) provides unified multi-platform content operations solutions to organisations that deal with content and are keen to exploit it across platforms. CLEAR™, its award-winning combination of a hybrid-cloud technology platform and managed services increases agility within a business, driving creative enablement, cutting operating costs and is available in a pay as you grow model. Backed by a global network of studios, CLEAR™ offers a secure solution for concurrent file-based new-media, channel, distribution & delivery and library operations.
PFT works with major content owners across the broadcast, film, sport, advertising and brand sectors. Its clients include Star TV, Eros International, Sony Music, Viacom 18, Sony MSM, BCCI, Indian Premiere League, Hindustan Unilever Limited, Associated Press, A & E TV Network, Vijay TV, Netflix, Schawk!, WPP.

RECENT NEWS--

Prime Focus lands services deal with Hollywood Studio

By Bollywood Hungama News Network,November 02, 2012 - 12:09 hrs IST

Prime Focus Technologies (PFT), the global digital content operations specialist, part of a Prime Focus Group company has signed a multi-million dollar deal with one of Hollywood's leading film studios yesterday in Los Angeles. PFT will supply media processing services to ensure full compliance with the Federal Communications Commission (FCC) regulations for new media. PFT will leverage CLEAR, its award-winning hybrid cloud content operations platform to handle the assets, automated QC, approvals, workflows, delivery and archiving of content. It also manages over 180,000 hours of TV and Film content each year for its clients in Europe and Asia. By leveraging the relationships that parent company, Prime Focus has built up through its high-end visual effects and 3D conversion work for major studios, PFT is now gaining traction in providing CLEAR led services in North America also.

A 1,00,000sq.ft facility at Andheri in Mumbai is being setup to cater to its burgeoning demands, the facility is being built to suit the requirements of the increasing list of elite clients. PFT has an exclusive vendor relationship for its variety of services. This facility will also house the Digital Broadcast Hub, and will be the new global headquarters for the company. The facility is expected to be commissioned in February, 2013. Ramki Sankaranarayanan, President and CEO of Prime Focus Technologies said, "We are starting to see real growth for our business in the North American market, and this deal will provide us with a solid foundation to expand our services and client-base within the region. CLEAR the hybrid cloud platform is backed by our global network of supporting services. This is proving to be the preferred option for Hollywood studios, as they need to process large volumes of content within the existing time frame and cost limitations without compromising on creativity."

MAXWELL INDUSTRIES LTD CMP 20.4

One of the oldest Indian companies engaged in manufacturing and marketing of innerwear, Maxwell Industries is targeting Rs 1,000 crores turnover in the next three years. Also on its agenda this year is opening of EBOs. “We market well-known brands viz. VIP Innerwear, Frenchie, Frenchie X, and VIP Feelings and all their sub brands. Maxwell’s brands and their extensions have leadership position with a significant market share in their respective categories. We want to achieve the No. 1 position not only in market share but also through a clear perception that the consumer carries about the brand,” explains Sunil J Pathare, Vice Chairman and Managing Director, Maxwell Industries.

Maxwell Industries is present throughout the spectrum of innerwear industry, with VIP innerwear in the budget and economy segment; Frenchie, a generic brand offering briefs; and Frenchie X in the premium segment for youth. In the women’s lingerie segment, VIP Feelings represents Maxwell Industries. This brand is known for its innovations and creation of categories such as nursing bras and sanitary panties. Talking about the inception and journey of VIP, Pathare elaborates, “Maxwell entered the category when it was completely a commodity market, in the year 1971. It created the brand VIP and started the most complicated process of creating a brand in a commodity market. We were the only player till the mid-eighties who were pumping money into this category for creating a brand. It has definitely paid off as far as VIP is concerned. We have seen the consumer evolving from commodity to brand to international brand. The trade has shifted from wholesale to distribution to modern trade to exclusive brand stores.”

Today, the group has a dealer network of 550 and 1,10,000 retail outlets in India alone with a potential for growing even more, which the group is intent on exploiting. “Maxwell Industries today boasts of six regional offices with a sales force of over 150 highly motivated individuals throughout major towns. The brand range starts with VIP (Male Mid Segment), Leader (Male Economy Segment – Largely Rural India), Frenchie (Male Premium Segment), Frenchie X (Male Premium Segment), Feelings (Female Mid and Premium Segment) and BRAT (Unisex Kids’ Brand on Mid and Premium Side),” adds Pathare.

Moving ahead, the company now wants to explore and focus on socks and thermals. Maxwell is also into exports exporting mostly to Middle East, Africa and some European countries

EROS INTERNATIONAL MEDIA LTD CMP 169

The entertainment industry, though dependent on the economic environment, has select players that are able to thrive. Eros International Media (Eros) is one such film distributor and co-producer of Hindi and select regional movies. The company has managed to derive significant revenues from mega and large budget movies, while reducing business risks by monetising the cable and satellite rights for such films.

At Rs 169, the share trades at eight times its likely per share earnings for FY13. This is lower than the valuation enjoyed by multiplex players as well as the historical multiples that it enjoys.

A slew of top movie releases that have been successful in the current fiscal, a strong pipeline of star-studded films and the ability to monetise movie rights by selling them to satellite channels are key positives for the company.

In the present slowing economic environment, the company is not going big on mega budget movies of Rs 100-150 crore, like it did in the last fiscal.

The company recovers 35-40 per cent of its costs by selling movie rights to channels such as Colors, Zee TV and Star Plus. In co-production, Eros tends to enter into revenue-sharing arrangements only after it recovers a significant portion of its investment. Together, these strategies reduce the risk inherent in the film production and distribution business.

The pipeline of movies, especially in Tamil, is quite promising. Films such as Kochadaiyaan,, Maatran and Yohaan Adyayam Ondru have strong casts as well as established directors.

PENNAR INDUSTRIES LTD CMP 26.6

Pennar Industries (NSE: PENIND, BSE: 513228) is one of India’s leading industrial companies engaged in the production and marketing of specialized and engineered metal products. The Company is a leading manufacturer of profiles and components in various grades of steel and stainless steel. It caters to the auto, white goods, railways and infrastructure sectors. In January 2010, the Company through its subsidiary, Pennar Engineered Building Systems Limited (PEBS) started providing Pre-Engineered Building solutions. PEBS has a technical collaboration with NCI Group, a global leader in pre-engineered structures, which enables the Company to provide world class weather proof building solutions.

Investors Presentation Oct 2012

http://www.churchgatepartners.com/doc_download.aspx?public=1&document_id=2914

Recent developments :
PEBS Pennar secures orders worth Rs 60 crore

Published on Fri Sep 14, 2012 at 02:41 PM

Pennar Engineered Building Systems (PEBS Pennar), a subsidiary of Pennar Industries has announced the receipt of orders from Ultratech Cements, Kirloskar Pneumatic and others amounting to Rs 60 crore. The company has secured repeat order from Aditya Birla group`s Ultratech Cements for design, manufacture, supply and installation of three buildings to be used for storage of limestone, additives and lime stock piles. Out of these, two buildings will be built in an area of 25,705 Sqm and 22,449 Sqm, respectively at Malkhed, Karnataka and are expected to be completed in 30 weeks. The third building is spread over an area 14,150 sqm and is located at Gothan, Rajashan. This is the sixth order from Ultratech Cements. Previously, PEBS Pennar has executed projects across India for Ultratech Cements including India`s first pre-engineered building with 99 meter clear span at Kotputli, Rajasthan.
The company has secured order from Kirloskar Pneumatic for its manufacturing unit near Pune. The building is spread across an area of 8,300 sqm and is expected to be completed in 14 weeks.
The company has secured order from Navayuga Engineering for design, manufacture, supply and installation of a missile storage facility for DRDO (Defense Research and Development Organization). The project is coming up in Himachal Pradesh and is expected to be completed in 12 weeks.
The company has secured repeat order from Jampana Constructions for design, manufacture, supply and installation of steel structures for a Government of India Advance Training Project. Jamapana Constructions is the turnkey contractor for the project. The project is located in Nagpur and the building is expected to be completed in 16 weeks.
Further, the company has secured order from Rohan Builders for a manufacturing unit meant for Nipro India Corporation (a Japanese company) for their upcoming project in Shirwal, Maharastra. The pre-engineered steel building will be used for their pharmaceutical manufacturing unit. The building is spread across an area of 6,500 sqm and is expected to be completed in 14 weeks.
The company made this announcement during the trading hours today, 14 September 2012.
Powered by Capital Market - Live News

Pennar Industries bags orders worth Rs 70 crore

Published on Tue Sep 25, 2012 at 05:57 PM

Pennar Industries has received orders worth Rs 70 crore from Texmaco, L&T, Mahindra EPC and others for the supply of wagon components and structurals for solar power plants.Powered by Capital Market - Live News

Pennar Industries` subsidiary secures orders

Published on Thu Oct 18, 2012 at 04:33 PM

Pennar Engineered Building Systems, a subsidiary of Pennar Industries has received orders worth Rs 50 crore from IOT Infrastructure & Energy Services, Oil Country Tubular, Dynatron Services and East Line Steels.Powered by Capital Market - Live News

It all Makes it a good buy.

SOMANY CERAMICS LTD

Somany Ceramics  make high of 71.9 from our buy price of 48.9

Tiles maker Somany Ceramics today said its net profit rose by 39.47% to Rs 8.02 crore for the quarter ended September 30, 2012 over the same period in previous fiscal, mainly on value added products.
The company had posted a net profit of Rs 5.75 crore for the quarter ended September 30, 2011, Somany Ceramics said in a statement.


Net sales of the company stood at Rs 256.62 crore for the quarter under consideration as against Rs 206.90 crore for the corresponding period previous fiscal.

Commenting on the results, Somany Ceramics Ltd Joint Managing Director Abhishek Somany said: "The current financial results indicate a healthy top line growth of 24%. This signifies Somany's strong lineage in the Indian ceramic industry."

The company's launch of 80x80 cm and 60x120 cm GVT tile will also add significantly to the value added segment in the coming quarters, he added.

ROSSELL INDIA LTD

Rossell India Ltd which has diverse business interests has entered the Indian QSR sector and plans to launch thirty outlets of its brand Kebab Xpress in three years. Three of its outlets are all set to be launched this year in New Delhi. According to a top official, the company has earmarked an investment of Rs 10 crore for the venture and in future will accrue capital internally.

“To start with we will pilot 2-3 outlets in Delhi NCR region with an intention of opening in access of 30 outlets in the next three years. For now we have earmarked about Rs 10 crore for this particular project and as we go along and open more outlets, the money will be raised through internal accruals,” Jagjit Singh, Vice President Operations said in an exclusive chat with India Hospitality Review.

Kebab Xpress is a Greenfield hospitality venture of Rossell India Group and will serve North Indian food in QSR format across the country. Singh added that most of the Indian customers still prefer Indian style dishes to their international counterparts and with the sector growing, the brand is likely to find popularity among its customers. The outlets will have an all-day dining and take-away menu. In four to six months, they will start home deliveries.

“Indian QSR Industry is growing very rapidly. It is a reflection of the change in the lifestyle, food habits and consumption pattern of the population. The incidence of Dining out, ordering from home as well as takeaways is rising creating an opportunity to cater to a wide mass of population,” Singh added.

The chain will follow a central kitchen format which will act as a hub and cater to several outlets in the city. Out of the three planned outlets two will open in Connaught Place in central Delhi. The company has also established its production base in Okhla and maintains that the QSR outlets would do a minimum of cooking.

“We are depending on a central kitchen format where there is one hub and other spokes are being supplied to. This is being done to retain the consistency in the colour, taste and shape of our products,” Singh said.

The company previously has held diverse interests in the hospitality sector both in domestic and international market. Earlier Rossell India held a minority stake in Lemon Tree Hotels which it divested last month for a profit of Rs 14 crore. The company has also made strategic investments in fast food businesses in Nigeria, Africa. It has franchisee rights from Yum and operates eight Pizza Hut outlets in the region.

Rossell India which was formerly known as Rossell Tea Limited has diverse interests in tea, aviation and defence. The company is listed on the Bombay, Kolkata and Guwahati Stock Exchanges

HCL INFOSYSTEMS LTD

Breaks out of complex inverted head and shoulder pattern---- BULLISH

ROSSELL INDIA LTD

CMP-30.5

Rossell India Limited was formerly Rossell Tea Limited. The Company has diverse interests in Tea, Aviation and Hospitality. To better reflect the diversification of its businesses, and to create a unified brand, the company, on the 19th of April 2011, rechristened itself as Rossell India Limited. Post this rechristening, Rossell India Limited has also restructured itself into three divisions – Tea, Aviation & Defence (Technology and Engineering) and Product Support Services (Aerospace). In the Aerospace and Defence segment, the company has JV’s, partnerships and service agreements with leading OEMs of the world. Apart from this, Rossell India Limited also has strategic partnerships in the Hospitality sector.Rossell India Limited has collaborative strategic investments in the fast food business in Nigeria, Africa. With franchise rights from YUMS, the brand owners of KFC, Pizza hut and Taco Bell, eight KFC stores are already operational. By the end of 2012, forty outlets would be operational.

Charts showing double bottom, positive divergance on RSI,MACD and Stochastics.

BUY

G.M.BREWERIES LTD

CMP 77.45  Inverted Head and shoulder breakout will take it to atleast 100.

SOMANY CERAMICS LTD

CPM  48.9
BUY

Somany Ceramics Limited (Somany) incorporated in 1969 is part of the HL Somany group. It is one of the leading players in the Indian tiles industry with a presence in both ceramic and vitrified tiles. The company has manufacturing units in Gujarat and Haryana. The company has a strong and an extensive distribution network comprising over 1,300 exclusive dealers, around 5,000 sub-dealers and 68 showrooms/display centers across India to increase market penetration. It also has 20 depots spread across India.

Outlook to remain healthy with demand from  the real  estate sector and replacement demand but low-cost Chinese imports a key concern .Demand to remain healthy from the real estate sector, and replacement demand but the industry may face stiff competition from cheap imports from China. Key concerns

• High dependence on real estate sector

• Competition from low-cost Chinese imports and unorganized sector

• Volatility in prices of raw materials like Ukraine clay and soluble salts

Valuations

Somany is currently trading at trailing P/E and EV/EBITDA multiples of 5.7x and 4.5x, re

Value-added products’ contribution on the rise

Contribution from value added products – VC, Duragres and digital tiles – increased significantly in the past one year. The higher strength and abrasion resistant quality of VC and Duragres tiles and the unique characteristic of digital tiles have raised the demand for these tiles; hence their contribution to the consolidated top-line increased to 29% in Q1FY13 from ~17% in Q1FY12. We expect contribution from the value-added tiles to increase further; this will lead to slight expansion in margin despite rising cost pressures. Somany to focus on growth through inorganic route.

Somany has adopted the inorganic route for expansion in the past one year, and is expected to follow a similar strategy for future growth too. It acquired 26% stake in Vintage Tiles Pvt. Ltd in October 2011 and a similar stake in Commander Vitrified Pvt. Ltd. in April 2012. With these acquisitions it got access to 5.2 mn sq.mt. Of capacity at a capital outlay of ~Rs 190 mn (including debt); on the other hand, a Greenfield expansion requires Rs ~1,200 mn. This strategy enables access to capacity at lower capital requirements, and thus provides impetus to return ratios.

ON EXPANSION MODE-

Somany to invest up to Rs 200-cr in over two yrs on expansion

In near future we can also pick up 26 or 51% stake in one or two tile manufacturing units in Gujarat, Trivedi said

Press Trust of India / Ahmedabad Aug 23, 2012, 18:55 IST

Tiles maker Somany Ceramics (SML), a flagship company of H L Somany Group, today said it would invest Rs 150-200 crore over the next two years on organic and inorganic growth in India.

The company having annual production of 19.5 million square metres proposes to set up an ultra-modern tiles manufacturing plant in Karnataka, and is looking to add 3-4 million sq metre capacities in Gujarat through the acquisition route.

We shall invest Rs 150-200 crore on expansion in India over the next two years. It includes our plan to set up a modern plant at Tunkur in Karnataka having 36 mn sqm annual production capacity, besides few acquisitions in Gujarat,"SMLCEOGGTriveditoldPTI.

"We have already acquired close to 85,000 sq metres of land in Karnataka for the proposed new facility in future," he said.

In near future we can also pick up 26 or 51% stake in one or two tile manufacturing units in Gujarat, engaged in manufacturingofvitrifiedandfloortiles, Trivedisaid.

"It would add up another 3-4 million sq metres to our production capacity in Gujarat," he said.

The company has combined production of 5.5 million sq metres through its two joint ventures at Morbi, which is separate to 19.5 million sq metre annual production from its two plants, one each in Gujarat and Haryana.

SML has set an ambitious target of achieving Rs 1,250 crore turnover in the current fiscal (2012-13). It closed with a turnover of Rs 921 crore in last fiscal (2011-12), and reported Rs 25 crore net profit.

Somany to focus on south Indian market

Company is set to add 3-4 mn meters capacity through acquisitions

BS Reporter / Ahmedabad Sep 12, 2012, 10:40 IST

Tiles and sanitary ware major Somany Ceramics Ltd (SCL) would be focusing on the south Indian market in the coming years. The company already has two manufacturing units one each in Haryana and Gujarat.

Now, they have acquired 68,000 sq mt of land in Karnataka, where they plan to set up a Greenfield plant in days to come. Chairman and Managing Director of SCL Shreekant Somany said "In the coming years our focus will be on the south India." The company having annual production of 19.5 million sq mt besides proposing an ultra-modern tiles manufacturing plant in Karnataka, is also looking to add 3-4 million sq mt capacity in Gujarat through the acquisition route.

Its target for this fiscal is increasing production to 30 million sq meter. This would through both the organic and inorganic route. The company also plans to achieve turnover of Rs 1000 crore this fiscal.

Somany was also optimistic about the growth of the tiles industry. "Though there is slow down in the real estate sector, new construction are still being undertaken. Also, there is tremendous demand for office and commercial space in the country. I expect 12%-15% average growth for the tiles industry at least for the next 15 years," he added.

He further informed that the since urbanization will increase in the future, so will the demand for tiles and ceramics.

The present sales of the company constitute 35% from projects while 65% is from the retail business. "The figures reverse just four years ago," Somany said, justifying his optimism for the ceramic industry.

SCL, a flagship company of the H L Somany group has 87 store across the country and plans to add another 20-25 stores by the end of this fiscal year. It has two manufacturing facility one in Kassar, Haryana and other in Kadi, Gujarat. It has also taken up stake in two companies based in Morbi, Rajkot.

Scripcode : 531548 Company : SOMANY CERAMICS LTD.

Somany Ceramics Ltd has informed BSE that the Company has launched a new product on July 23, 2012. The product namely 80X80cm glazed vitrified tile is first of its kind in the Ceramics Industry in India. The product was launched in the august gathering of more than 150 ceramics tile dealers of the country.

These large format tiles are available into two variants to be manufactured under the digital technology - the first one with the nano polish that gives a super glossy finish to the tile surface and the other variant available under the patented VC shield gives the tile a dazzling matt finish.

This latest innovation by the R & D team of Somany has given the tile industry yet another advanced product in order to delight its customers.

Kalyani Steels Ltd

CMP 53.35

Kalyani Steels Ltd, is a part of the over $2.1 billion Kalyani Group. Established in 1973, Kalyani Steels Ltd is a leading manufacturer of forging and engineering quality carbon & alloy steels using the Blast Furnace route.

With its corporate headquarters in Pune, Kalyani Steels Ltd. was set up to fulfill the in-house requirements of forging quality steel of the Kalyani Group.

In 1997, the Kalyani Group set up a new plant to manufacture steel using the less power intensive mini-blast furnace route. The new facility is at Ginigera in the Hospet-Bellary region of Karnataka state, where iron ore is abundantly available. This integrated steel complex has capacity of 400,000 tpa of carbon and alloy steels, which is being expanded to 650,000 tpa.

Over the years, Kalyani Steels has been continuously upgrading its technology and infrastructure. The facilities at KSL are at par with any sophisticated steel manufacturers in the world.

Although the forging industry in India is the primary market for the company’s products, markets of various components for commercial vehicles, two wheelers, diesel engines, bearings, tractors, turbines and rail also form a substantial part of the company’s clientele.

KSL has earned the status of preferred steel supplier for engineering, automotive, seamless tube and primary aluminum industry. 

Schneider Electric Infrastructure Limited (SEIL)

CMP- 87.50

Make the most of your energy

	72% of world energy is consumed by infrastructure, industry, buildings and residential markets.
	Up to 30% the energy savings that we can provide to these markets thanks to energy efficiency solutions now.

Today, energy is at the heart of every ones concern. More than ever, the current situation compels each and everyone to achieve more while using fewer resources. Global specialist in energy management, Schneider Electric makes energy safe, reliable, efficient, productive and green. How? Simply by making energy visible and gives you the means to act to optimise its consumption.

Schneider Electric Globally is a 22 B Euro (sales 2011) company with close to 100,000 associates spread across the world. Schneider Electric is organized globally into five main verticals namely Energy and Infrastructure, Buildings, Industry, Residential and Data Centres. In 2009 Schneider Electric with the vision to become global player in the field of MV products and solutions for smart grid automation and energy efficient distribution market made the strategic acquisition of AREVA’s Distribution business In India the AREVA’s Distribution business and associated products has now transformed into Schneider Electric Infrastructure Limited (SEIL) which is a listed company. The company is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for electricity network, including products such as transformers, medium voltage switchgears, protection relays and electricity distribution management systems and software. The business of the company comprises of the demerged undertaking that was transferred to it by ALSTOM T&D pursuant to the Scheme of Demerger, which became effective on November 26, 2011. The company has 9 manufacturing facilities in India spread over 5 locations, i.e. in Vadodara (3 units), Kolkata (2 units), Chennai (1 unit), Naini (2 units) and Noida (1 unit) and has 4 regional offices and 13 branch/sales offices located across the country. The company`s major customers are electrical distribution (utilities) and power generation companies in public as well as private sector and companies in electro-intensive industry particularly oil & gas and metals related. More details== http://www.schneider-infra.in/pdf/Investor-Relations/chairman-sppech-at-the-agm-on-31-july-2012.pdf http://www.schneider-infra.in/pdf/Investor-Relations/annual-report-2011-12-seil-fv.pdf GOOD FOR LONG TERM.

ADANI ENTERPRISES

On daily charts Adani showing positive divergence in RSI,MACD and Stochastic.Got support at 151.5 on 28 and 31st Aug.One can buy with stoploss of 149 for targets of 175-185-195 in near term.

VOLUME SPREAD ANALYSIS OF ADANI FOR LAST FOUR DAYS:

28/08/2012 - Open-159  High-159.4 Low-151.5 Close-155.9 Volume= 4,609,696 Stopping Volume. This will be a downbar during a bearish period closing towards the Top accompanied by High volume. A stopping Volume normally indicates that smart money is absorbing the supply which is an Indication that they are Bullish on the stock. HENCE WE CAN EXPECT A REVERSAL IN THE DOWN TREND.

29/08/2012 - Open-156.25   High-157.9 Low-153.2 Close-154.6 Volume= 1,951,065 No Supply. A no supply bar indicates supply has been removed and the SMART MONEY CAN MARKUP THE PRICE. IT IS BETTER TO WAIT FOR CONFIRMATION.

30/08/2012 - Open-155 High-157.5 Low-152.6 Close-155.35 Volume= 2,640,479 Strength Bar. The stock has been in a down Trend. An upbar with higher Volume closing near the High is a sign of strength returning. THE DOWNTREND IS LIKELY TO REVERSE SOON.

31/08/2012 - High-157.8 Low-151.5 Open-155 Close-155.8 Volume= 2,047,996 .The previous bar saw strength coming back. THIS UPBAR CONFIRMS STRENGTH.

Cox & Kings CMP Rs 138

Educational travel biz is recession-proof: Peter Kerkar

Interview with Director, Cox & Kings

Ruchika Chitravanshi / New Delhi Aug 23, 2012, 00:15 IST

bussiness standard

While leisure travel currently accounts for the bulk of Cox & Kings’ business, the company is targeting education travel in the next two to three years, Director Peter Kerkar tells Ruchika Chitravanshi in a telephonic interview. Edited excerpts:

What does the deal with Citi Venture Capital International mean for the India business?
I had planed to transform the company from one primarily into tour operations to an education specialist. We knew we were acquiring debt for Holidaybreak. We brought in $137.75 million, which changed our debt-to-equity ratio from 2.7 to 2.2 within a year of the acquisition. I am not diluting my shareholders at Cox & Kings. From the start, I said we would have a very aggressive debt-reduction programme. This is its first stage.

What is the next stage?We would create a cash pool from business flows. This would further write-off our debt. Between Cox & Kings and its UK subsidiary Prometheon Holdings, our earnings before interest, tax, depreciation and amortisation (Ebitda) is Rs 700 crore. Our payments don’t start before 18 months. It allows me to take the cash from Holidaybreak into the cash pool to reduce debt. After this deal, net debt would fall from $700 million to about $540 million.

What would be the key growth driver for the company?
Primarily, it would be educational travel. This has become a significant part of the business. We also have a camping division. We have forayed into this specialised market, which we believe is recession-proof and has great roll-out potential in Europe, followed by Asia.

What is the contribution of these verticals to your overall revenue?
For 2011-12, the share of leisure was 52 per cent, education 20 per cent and the remaining was accounted for by camping. In the next two to three years, 60 per cent of our revenue would be accounted for by the education business. In the last quarter, education accounted for half our Ebitda.

What are the Holidaybreak products you want to bring to India?
There are two kinds of products---up-centres, which we run for children (learning and activity centres), and our programmes for students like psychology, history and language tours. PGL, a Holidaybreak brand, has years of experience in health and safety. We will bring the standards and discipline of the UK into India.

Would you create a separate brand entity for Holidaybreak products or would these be merged with Cox & Kings?
It is slightly early to say, as we would have to see what brands we want to bring. Holidaybreak has 20 brands that are market leaders in Europe. We will see what fits here.

How much of the company’s revenue does India account for? What are the growth prospects here?
It is a little over 22 per cent and we are seeing growth of about 30 per cent on a year-on-year basis. The base we are starting from is so small that the double-digit growth will continue even in this economy. People will trade down, but won’t stop travelling. They will take smaller, but three to four holidays a year.

What kind of consolidation do you expect in the travel market?
There is a natural fall-out in the market; the bigger boys, who are better capitalised and have franchise and distribution networks in the international arena, would win. Regional players would come under pressure. Smaller agents who have cash flow from ticketing are already under pressure. These structural changes would benefit most big players. While the market may see a slowdown, in terms of organised players, there should be serious growth.

What do you think of the online market?
We look at the online space as just another way of accessing our customer base. We feel we have a world class online platform, comparable with any online travel agency abroad. We have always said distribution was about touching and feeling people in India, at least for the next ten years. Franchisees enable us to have that touch-and-feel effect, and that has been our expansion strategy. We have to be ready with the online platform, when the movement comes to India. Technologically, we are prepared. But we are not looking at any acquisitions in the space.

With Thomas Cook’s new avatar, how do you see competition evolving?
I have been cognizant of competitors because you cannot be complacent. But beyond that, we are the market leader.

 

ICICIdirect.com is bullish on Cox & Kings and has recommended buy rating on the stock with a target of Rs 195 in its August 22, 2012 research report.

“Cox & Kings (C&K) have incorporated HBR’s peak season numbers (i.e. April-September period) into Q1FY13 numbers. This, in turn, led to robust revenue and PAT growth of 239% YoY and 284% YoY, respectively. C&K reported net revenues of | 532 crore vs. our estimated revenues of Rs 436.7 crore. The growth was mainly led by robust growth from the Indian operation (23% YoY growth) and sustained stable performance of the education division of HBR (40% of total revenues) leading to overall revenue growth of 8% YoY on a like-to-like basis. On the other hand, business of camping (14% of total revenues), HotelBreak and adventure divisions continued to get impacted due to a difficult operating environment in UK and other European regions. However, its impact on margins remained negligible due to improved margins of leisure division led by strong India business and stable margins in education division. With HBR’s peak season, stable margins and exchange fluctuation gain of Rs 71 crore, the company reported robust PAT growth of over 283% YoY.”

“The business of the education division (40% of revenue), a major contributor, continued to remain resilient and grew 9% YoY. The business of camping, adventure and HotelBreak have been affected due to difficult economic conditions in the UK & Netherlands and increase in local taxes in the key operational markets of France, Spain and Italy.”

“The company is raising nearly US$137.8 million (Rs 750 crore) through minority stake sale in its wholly-owned subsidiary Prometheon Holdings (UK) Ltd. The fund will be mainly utilised to retire part debt from Prometheon’s book, which we believe would further improve its profitability, going forward. We have valued the stock on an SOTP (i.e. 8x FY14E EV/EBITDA) basis and maintained BUY rating taking into account the long-term synergy with HBR and India’s growth potential,” says ICICIdirect.com research report.

APW President Systems Ltd

CMP 157.5 Dated 7/01/2011

APW President Systems Limited, is a leading designer, manufacturer and supplier of standard and customized enclosure systems in India and has been the market leader for over 27 years in 19-inch enclosures for IT and Telecom infrastructure, systems management and operations.


The Company caters to three major business segments: enclosure systems, contract manufacturing and trading activities – all with a focus on the IT/Networking and ITES, Telecom, General and Industrial Electronics sectors.



Unique Advantage


APW President is the only manufacturer in India offering standard and customized enclosure solutions to the IT and Networking, Telecom, General and Industrial Electronics sectors.


SCHNEIDER ELECTRIC CONNECTION :

Rueil-Malmaison (France), January 7, 2011 – Schneider Electric, the global specialist in energy management, announced today that it has signed an agreement to acquire a majority of the shares in APW President Systems Ltd. which designs and manufactures standard and customized racks and enclosure systems in India, serving in particular information technology and telecom end-users.


APW President Systems Ltd. has approximately 380 employees and generated sales of INR 1.08 billion (approx. €18 million) for the twelve months ending September 30, 2010. The Company has manufacturing facilities at Pune and Bangalore and has a broad customer base with sales and marketing offices across India.


This acquisition is another milestone in Schneider Electric’s development in India. With APW President Systems Ltd., Schneider Electric is well positioned to capture opportunities in the fast growing Indian IT infrastructure market as well as in international markets, particularly in Asia Pacific and Middle East. The Group will also be able to tap the talent pool and increase its solutions execution capabilities from server rooms to extra large data centres.


Laurent Vernerey, Executive Vice-President of Schneider Electric’s IT Business commented: “APW President Systems Ltd brings to us the expertise to customize racks and enclosures for our global data centre customer base. With this acquisition, Schneider Electric becomes a leading Indian player in integrated data center infrastructure solutions and further accelerates its development in the domain of data centres.”


Schneider Electric proposes to acquire shares representing a maximum of 75% of the share capital of the company by acquiring a minimum of 55% of the share capital from the promoter shareholders of APW President Systems Ltd. and up to 20% of the share capital of the company pursuant to a mandatory open offer to be made to the other shareholders. Depending on the response to the open offer, additional shares can be acquired from the promoter shareholders, provided that the total number of shares acquired from the promoter shareholders, together with the shares acquired under the open offer do not exceed 75% of the share capital of the company. The maximum price payable by Schneider Electric for the shares to be acquired from the promoter shareholders is INR 195 per share (approx. €3.25 per share), which translates to INR 622 million (approx € 10 million) for 55% of shares from promoter shareholders. Pursuant to the open offer, the cost to acquire up to 20% of the share capital will be in accordance with applicable Indian law.

The completion of the transaction is subject to regulatory approvals and satisfaction of conditions precedent. This acquisition is expected to meet Schneider Electric’s Return on Capital Employed criteria.


About Schneider Electric


As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 100,000 plus employees achieved sales of 15.8 billion euros in 2009, through an active commitment to help individuals and organizations “Make the most of their energy”.



IT MAKES SENSE TO ADD IT TO PORTFOLIO.

NINA