HDIL - Alchemy

8/6/2019 HDIL - Alchemy

1/14

Bloomberg code ASSB

Financial Highlights (Rs mn)

Initiating coverageReduceRs63

12 March 2009

HDILHigh dependence on TDR market and weak macro outlookmakes us bearish. Initiating coverage with a Reduce rating

Sastha Gudalore

91-22-6639 9177

[email protected]

March end FY07 FY08 FY09E FY10E FY11E

Net sales 12,165 24,323 17,425 11,538 12,540

Net profit 5,416 14,104 7,303 2,099 2,788

EPS (Rs) 30.1 68.0 33.8 7.6 10.1

PER (x) 2.0 8.9 6.7

ROE (%) 118.8 64.6 18.0 4.6 5.8

ROCE (%) 72.9 35.9 9.4 2.3 3.0

EV/EBITDA (x) 2.5 2.5 6.5 17.3 14.4

We believe that HDIL will underperform due to continual reduction invalue generated by the Mumbai airport project and a deterioratingtransfer of development rights (TDR) market. A large portion of its landbank (~70msf) is located in the Vasai/Virar region where we expectdevelopment to be slow. We initiate coverage on this stock with aReduce rating and a price target of Rs56/share.

TDR prices still have more downside

While home prices and commercial values have corrected by over20%, TDR prices have crashed over 75% from Rs4,200psf toRs1,000psf. We believe that oversupply and lack of demand in thismarket could push down prices even further. As HDILs FSIinventory depletes, it would be significantly dependent on TDRsales to generate revenues. TDRs comprise ~25% of HDILs landbank and the Mumbai airport project alone is expected to generate~50msf of TDR.

Mumbai Airport Project has lost significant valueWe value the Mumbai Airport Project at Rs16/share which makes23% of its net asset value. The loss in value (compared to whatwas expected previously) is mainly due to an unprecedented fall inTDR prices and lack of demand/oversupply of commercial space.Currently, we believe that most of the project value will begenerated by the saleable portion of ~6.3msf (of the 53 acre PhaseI plot) which has a FSI of 4 (even for the saleable portion). Thecompany has announced residential development of 0.75msf in theplot. However, we believe that value will be created only if weassume commercial development in this plot. Given the crash inTDR prices, we do not believe that Phase II and Phase III of theproject will generate any meaningful value. Therefore, we believeHDIL could try and exit the project after Phase I, if it is allowed bythe contract.

HDIL looking to de-risk its business model from SRS and mega

structuresHDIL has opted out of bidding for Dharavi SRS project and haschanged its plan to launch a residential project in Kurla (instead of acommercial development). The management indicated that it willnot invest in SEZs for the next three years. We believe this is abetter strategy in this environment though HDIL still has some megastructure projects (Eveready, Bombay Oxygen, Kilburn land) in itspipeline which may require considerable capital investment.

Valuation

We estimate HDILs NAV at 69/share. We have arrived at our 12-monthprice target of Rs56/share after applying a discount of 20%. This impliesan 12% downside from current levels. We initiate coverage with aReduce rating.

Reuters code HDIL.BO

Bloomberg code HDIL IN

Shares o/s 275.49 mn

Mkt Cap Rs17bn / US$337mn

52 week high/low Rs679/63

Avg daily trading volume 21.70mn shares

BSE Sensex 8160

Nifty 2573

Shareholding pattern (%)

Promoters 61.5

Flls 10.0

Banks/FIs/MFs 0.5

Public/Others 28.0

Performance (%) 1m 3m 12m YTD

Absolute -21.7 -29.0 -86.8 -51.2

Relative to Sensex -8.0 -20.3 -74.2 -42.3

Share Price Movement

0

200

400

600

800

1,000

1,200

Jul-07

Sep-07

Oct-07

Dec-07

Feb-08

Mar-08

May-08

Jun-08

Aug-0

8

Oct-08

Nov-08

Jan-09

Mar-09

(Rs)

Why should you read this report?

We have valued the Mumbai Airport project

separately

Sensitivity of TDR prices on Mumbai Airport

project

Financial Highlights


2/14

Alchemy

2

Contents

Mumbai focused land bank a positive.............................................................................................. 3

Mumbai airport project: HDIL does not have any incentive to go beyond Phase I ......................... 3

Mumbai Airport project and Phase I rehabilitation location ............................................................. 4

Phase I details and valuation ...................................................................................... ..................... 4

Key risks of Phase I............................ .............................................................................................. 5

Complete project details and valuation............................................................................................ 5

Key takeaways...................................................................................... .......................................... 5

Projects under progress .............................................................................................. ..................... 8

Valuation................ .............................................................................................. ............................ 9

About HDIL............................................................................. ....................................................... 10

Business Structure of HDIL......................................................................................... ................... 10

SRS - Slum Rehabilitation Scheme .................................................................................. ............. 11

Slum rehabilitation process .................................................................................... ........................ 12


3/14

HDIL

3

MUMBAI FOCUSED LAND BANK A POSITIVEHDIL has a Mumbai focused land bank with over 87% in the MMR region. Transfer of

development rights (TDR) forms a substantial portion of its land bank. Nearly 50msf of

TDRs is expected to be generated by the Mumbai airport project itself. However, we

note that ~70msf of its land bank lies in Vasai/Virar region where development is

expected to be slow.

Table 1: Large concentration of TDRs in land bank

Land reserves Established

developable area (msf)

% of developable

area

Land owned by the company 95 48

Land over which company has sole development 67 34

MoU/agreements to acquire/letters of acceptance 21 11

Joint development with partners 14 7

Total 196 100

Source: Company

Although prices in the Mumbai market have corrected substantially recently, we view

large land concentration in Mumbai as a positive as 1) Mumbai is a land locked region

with limited free land available and 2) long term growth prospects in Mumbai look

brighter as it is the financial hub of India.

Chart 1: Overwhelming focus on Mumbai for future planned launches (133msf)

81%

11%7% 1%

MMR Kochi Hyderabad Pune

Source: HDIL, Alchemy Research

MUMBAI AIRPORT PROJECT: HDIL DOES NOT HAVE ANY INCENTIVETO GO BEYOND PHASE IAbout the project

The Mumbai Airport Project is the largest urban rehabilitation scheme in India. It

involves rehabilitation of 80,000 to 85,000 slum families. The objective of the project

(apart from rehabilitating slums) is to free up land for modernization of the Mumbai

international airport.

The project envisages clearance of 276 acres of land currently occupied by slum

tenements close to the airport. The timeline of the project is 5 years. Phase I of the

project involves rehabilitation of 18,000 to 20,000 families with a construction timeline

of 15 to 18 months (completion by the end of CY09).


4/14

Alchemy

4

MUMBAI AIRPORT PROJECT AND PHASE I REHABILITATION LOCATION

Source: HDIL, Google Maps, Alchemy Research

PHASE I DETAILS AND VALUATION For phase I, HDIL is rehabilitating slum dwellers in 53 acres of land that it owns

in Kurla (Premier Auto Factory). 38 acres will be used for rehabilitation while

the remaining will be used for building residential/commercial developments forsale. HDIL will get an FSI of 4 for the entire plot including its residential and

commercial saleable developments.

Phase I rehabilitation development is scheduled to be completed by the end of2009.

The company has launched a residential development at Kurla (a total of 756flats) last week at a price of Rs5,251psf. The company indicated that they had

sold around 400 flats in the first two days of launch. Our assumptions of sale

price are Rs5,250psf as it already at a significant discount to market rates.


5/14

HDIL

5

We have assumed that the rest of the saleable area (5.55msf) in phase I willbe used for a commercial development.

From Table 2, we get the per share value of Phase I to be Rs21/share.

KEY RISKS OF PHASE IOversupply of commercial space and lack of capital may make the company decide

to build residential apartments in the rest of the 5.55msf saleable area. This may

result in a significant loss in value.

Table 2: Phase I valuation results in a per share value of Rs21

Phase I Comments

No of families 18,000 18,000 to 20,000

Land used for rehab (acres) 38

Rehab area built (msf) 6.3 269sqft per tenement. Loading of 30%.

Construction TDR (msf) 8.4 1.33X rehab area built

Land TDR (msf) 2.2 1.33X land area used

Total TDR (msf) 10.6

Revenues (Rs mn)

Residential component value (0.75msf) 2,047 Selling price of 5,250psf

Commercial component value (5.55msf) 26,229 Capital value of Rs10,000psf, disc over 3.5yrs

TDR sales (Rs mn) 8,987 Assuming PV of selling price of Rs850psfTotal sales (Rs mn) 37,557

Costs

Cost of land (mn) 19,000

Construction cost (mn) 6,924 Taking Rs1,100psf construction cost

SG&A (10% of revenues) (mn) 3,756

Total costs (Rs mn) 29,680

Income (Rs mn) 7,877

Tax @ 25% 1,969

Net present value (Rs mn) 5,908

Net Value per share (Rs/share) 21

Source: Alchemy Research Estimates

COMPLETE PROJECT DETAILS AND VALUATION Project involves clearing 80,000 to 85,000 families from 276 acres of land.

The current estimated timeline for the entire project is five years.

Valuation of the entire project is just Rs16/share. (see table 3)

Key takeawaysUnless the TDR market picks up, HDIL may not be very keen on completing the entire

project as there is destruction in value of Rs5/share if it goes ahead with Phase II & III.

It would therefore look to exit after completing Phase I. The government may have to

give some incentives to keep HDIL interested in the project.


6/14

Alchemy

6

Table 3:Valuation of the entire project at Rs16/share implies destruction in value in Phase II&IIIMumbai Airport SRS project

Assumptions

Total land to be cleared (acres) 276

A Nos of families 82,500 (around 80,000 to 85,000)

B Carpet Area/family (sqft) 269

Airport project cost

Land CostC Land required for rehabilitation (acres) 165 (as per management guidance 150 to 180 acres)

D Cost of land/acre ( Rs mn) 220 (220 as per management guidance)

E Total land cost (mn) = C*D 36,300

F Amount paid (Rs mn) 30,000 (Rs19bn paid in FY08 and Rs11bn is in loans & advances)

Remaining cost to be paid (mn) 6,300

G NPV of remaining cost 4,839 (discounted at 14% for two years)

Rehab Construction Cost

H Rehab Construction cost (psf) 1,100

Rehab Construction cost (mn) = A*B*H*1.3 31,735 (loading of 30%)

I PV value of construction cost (mn) 24,374 (discounting over an average of 2.5 years @ 14%)

J Total cost of Airport project = F+G+I 59,213

TDR generation

Construction TDRConstruction TDR is based on the progress of construction at

the rehab land rather than clearing of slums

Rehab area constructed (msf) = A*B 22.2

Loading 30%

K Built-up area (msf) 28.9

L Construction TDR (msf) = K*1.33 38.4 1.33X rehab area as this is a difficult project

Land TDR

M Area used for construction (acres) 165

N Land TDR received (msf) = M*1.33*43560 9.6 1.33X (as this is land in the suburbs, you automatically get 1.33

FSI Total TDR received (msf) = L+N 47.9

O NPV of TDR revenues 30,266 (Using TDR prices of Rs900psf), sold over period of 10yrs

P Residential development at Kurla (0.75msf) 2,047 (Selling price of 5250psf)

Q Commercial component value (5.55msf) 26,229 (Capital value of Rs10,000psf), discount by 3.5 years

R MIAL land (65 acres) 13,370 (Assuming land sale at Rs43crore an acre), discount by 5.5years

Gross income of airport project (mn) O+P+Q+R 72,205

minus:Total land + rehab construction cost 59,213

minus:SG&A & other costs (10% of GI) 7,221

Value of airport project 5,772mn

Tax @ 25% 1,443

Net present value of airport project 4,329mn

Value per share (Rs) 16

Source: Alchemy Research Estimates

We have valued the Mumbai Airport redevelopment project as a whole at Rs16/share.

However, we note that there are several fluid assumptions in this valuation and the mostcrucial is sensitivity to TDR prices. We did a sensitivity of the value of airport project

by varying TDR prices. The results are listed in the table below. As can be seen from

Table 4 we believe that the value of the project could be zero if TDR prices fall to

Rs675psf.

Table 4:Sensitivity of airport project value to TDR prices

TDR prices (Rs psf) 1,200 1,000 900 800 700 675

Airport project value/share (Rs) 37 23 16 9 2 0

Source: Alchemy Research


7/14

HDIL

7

HDIL looking to diversify risk from SRS does not bid for Dharavi SRS

HDIL has opted out of bidding for Dharavi slum redevelopment but will look to

participate in the project through sub-contracting by the eventual winners of the bid.

HDILs application was always in doubt after its financial partner Lehman Brothers

went bankrupt. We see this as a sign that all is not fine with the Mumbai Airport project

and that the company believes that the Dharavi project would not be viable in the

absence of a strong financial partner. SRS redevelopment projects require substantial

capital for upfront construction of rehab houses. Although HDIL has restructured mostif the debt which was due over the next year (see section on HDIL making progress in

restructuring debt), we estimate that it would have struggled to raise incremental debt

for this project. HDIL is the largest player in the SRS space and has the best

understanding of dynamics and capital requirements of these projects.

Currently, we believe there is too much focus on large scale SRA developments and

integrated townships. We believe that HDIL needs to change its business model to move

away from parking funds in mega structure projects in the current environment.

Demand has rapidly fallen off and so has the appetite for large scale projects.

HDIL is currently working towards including residential developments in its product

mix. If pre-launches of residential projects are even party successful, the project could

receive some funds which can be utilized to fund construction.

Dependence on TDR will pressure near term revenues

A large portion of HDILs revenues are expected to be generated from TDRs which is a

business to business (B2B) transaction where a developer buys incremental development

rights through TDR. The company is expected to generate close to 50msf of TDR from

the Mumbai Airport Project. TDR prices have fallen over 75% from Rs4200psf in

March, 2008 to Rs900-1000, currently.

TDR prices and demand for TDR has been affected by the following factors

In March 2008, the government of Maharashtra increased the base FSI insuburbs to 1.33 from 1. A maximum FSI of upto 2 is allowed in the suburbs

through the usage of TDR. The incremental FSI above the base FSI could be got

through use of TDR. Now after the new rule, just 0.67msf of TDR is required (2

minus 1.33msf) compared to 1msf of TDR previously (2 minus 1msf) to buildupto the maximum permissible FSI.

TDR can only be used in the suburbs and north of where TDR was generated.As land available for development is limited in the suburbs and a huge quantum

of TDR supply has entered the Mumbai market demand is lesser than supply

which will pressure rates.

A large number of developers have shelved new construction plans and scaleddown existing plans. This has reduced demand for TDR.

TDR outlook continues to be weak

TDR prices are down to around Rs900-1000psf. HDIL said that its cost of generating

TDR works out to around Rs850psf which may indicate that TDR prices may be close

to bottoming out. However, we believe that TDR prices could further trend downwardsas 1) demand is limited as developments are being pushed back or cancelled and 2)

HDIL is dependant on TDRs to generate cash near term to fund its interest payments

and hence will be willing to sell at discounted prices.

Project completion methodology to recognize revenues is a positive

HDIL recognizes revenues using the project completion methodology compared to

percentage of completion methodology. The latter is widely followed in the real estate

sector. While this leads to lumpiness in revenues, it is a much more conservative method

of accounting. We believe this is a positive for the company as companies which follow

POCM may have to write back revenues recognized if sales booked dont materialize.


8/14

Alchemy

8

DLF already expects to write down Rs200mn of revenues due to retrospective price cuts

in Chennai.

HDIL is making progress in restructuring debt

The company is currently in the process of restructuring its short term debt to match

cash outflows with inflows.

In its 3QFY09 conference call, the management indicated that it had

restructured/refinanced Rs6.5bn of debt until January 20, 2009. This took care of mostof its loan liability for the next six to nine months. The management also indicated that

it was looking to restructure Rs12.75bn of non-convertible debentures (NCDs) which

are due in FY10. The total repayment liability for the next fiscal was ~Rs.16bn. The

company has subsequently restructured Rs12bn of NCDs at 12.5% for duration of three

to five years.

HDIL has therefore substantially improved its liquidity situation over the past month

although we note that it still has a D/E of 0.92. This may result in difficulties in raising

incremental debt. However, we note that the company has already tied down funding for

Phase I of the Mumbai Airport Project and does not have any land repayments due for

the next few months, as per the company.

Table 5:Liquidity project funding details of HDIL

Funding requirement CommentsMumbai airport Project Phase I Land paid for and Construction cost of ~Rs7bn tied

SEZ project in Virar/Vasai No money expected to be invested in SEZs for 3

years

Residential

Project Metropolis (Andheri) Fund by pre-launch of residential (300 flats) by March

endKurla project Pre Launch at Rs5251psf.

Reportedly booked 400 flats.

Balance sheet/Cash flow

Land repayments Nothing due over the next few months

Annual gross interest of over Rs5bn Cash from TDR sales/ profits from residential sales

Rs 16bn debt repayments in FY2010 Rs12bn has been restructured


PROJECTS UNDER PROGRESSHDIL is planning to develop large scale townships in the Mumbai region 1) HDIL

heights Ghatkopar East, 2) Bombay Oxygen land in Mulund, 3) HDIL Astra Navi

Mumbai.

The current ongoing residential projects are Kurla project, Project Metropolis at Four

Bungalows (Andheri West), Pantnagar (Ghatkopar), and Grand (Bandra W) .

The HDIL management said that it does not plan to put in any money into SEZs for the

next three years.


9/14

HDIL

9

Table 6:Major projects under progressResidential

Project Location Saleable area (msf)

Project Metropolis Andheri (W), Mumbai 1.7

(Four bungalow) Residential (300 Flats) 0.45

Commercial 1

Retail 0.25

Project Kurla Kurla, Mumbai 0.75(more than 850 flats)

(1,1.5, 2 bhk flats)

Pantnagar Project Pantnagar, Ghatkopar(E),

Mumbai

Low cost housing Virar, Mumbai

Commercial

Project Location Saleable area (msf)

Commercial complex, IT Park Nahur, Mumbai

Commercial complex, IT Park Turbhe, Navi Mumbai 1.8

(approx 15 acres plot)

Commercial complex, IT Park Mulund, Mumbai 1.5

(Commercial, Residential, Retail)

Commercial complex, IT Park Bhandup, Mumbai

Cyber City Kalamasserry, Kochi 8

Commercial complex, IT City

Pune Kharadi, Pune 1.2

Residential -0.4, Commercial -0. 8

Source: Company, Alchemy Research

Valuat ionWe have valued the company using the NAV methodology and have listed our

assumptions below. We have arrived at our price target of Rs56/share after applying a

discount of 20% to NAV. This implies a 12% discount to current market price.

Table 7:Our NAV based valuation methodology gives a price target of Rs 56/share

Valuation summary Rs mnMumbai airport project 40,829

FSI /TDR sale 5,000

Vasai/Virar/Palghar land 4,132

Commercial & Retail 10,082

Residential 4,164

Gross Asset Value (GAV) 69,722

Less: Net debt 39,579

Less: other net liabilities 5,484

Net Asset Value 24,660

No of shares outstanding (millions) 275

NAV per share 69

Discount to value (%) 20

Price target (Rs/share) 56Source: Alchemy Research


10/14

Alchemy

10

Table 8: Key assumptions driving our NAV analysis

Parameter Assumptions

Weighted avg cost of capital (%) 14

Discount to NAV (%) 20

Residential property selling prices

Kurla 5,250 psf

Andheri 8,000 psf

Hyderabad 1,800 psfGhatkopar 5,500 psf

Commercial property cap rate (%) 12

Not valued Kochi Kalammassary as project is stuck in litigation

SEZ

Valued Virar/Vasai land at Rs2.5mn an acre


About HDILThe Wadhawan group, promoter of HDIL, has over three decades of experience in the

real estate business and have developed more than 100msf of area. HDIL went public in

July 2007 and raised over Rs16bn of capital which was mainly used to fund construction

of its projects, and acquisition of land and development rights. HDIL has completed 32

projects upto December 31, 2008 which amounts to total developed area of 32.4msf.The company has established itself as a leader in the SRA business and is currently

working on the Mumbai Airport slum rehabilitation project. It is one of the largest SRA

projects involving rehabilitation of approximately 80,000 to 85,000 slum dwellers. The

company currently has 15 ongoing projects of 61msf.

BUSINESS STRUCTURE OF HDIL

Source: Company

New Business

HDIL

Core Business

Commercial

Residential

Retail

SRA/Land

Development

Infrastructure Entertainment

SEZ

Townships

Multiplex


11/14

HDIL

11

SRS-SLUM REHABILITATION SCHEMEAdvantages of slum rehabilitation projects

Release of valuable land: Helps to release valuable land in the heart of the city.

Low cost of land: Cost of land is only cost of construction of rehab buildingsfor the developer.

Additional FSI: FSI of the land can range from 3 to 4 depending on the densityof slums being cleared.

High barriers to entry as clearing slums require expertise.

Disadvantages of slum projects

The release of TDR through SRA adds to the already existing oversupply.

The developer has to bear clearing and rehabilitation costs.

SRA projects generally have large gestation periods.

HDIL are specialists in slum redevelopment and have to date built total rehabilitation

area of 3.31msf and saleable area of 3.6msf in slum land. HDIL has rehabilitated around

25,000 of total 65,000 slum units in Mumbai. HDIL is also currently doing one of the

largest SRA projects for rehabilitation of approximately 85,000 slum dwellers as a part

of Mumbai airport modernization.

Slum rehabilitation has tremendous scope in Mumbai given over 54% of Mumbais

population lives in slums. However, recently many of these large projects are generating

huge supply of TDR in the market. There is limited demand for TDR in the current

environment.

Table 9: As per Census 2001, 54% of Mumbai population lives in slums

Municipal Corporation State Population Slum population % slum population

(thousands) (thousands)

Greater Mumbai Maharashtra 11,978 6,475 54.1

Delhi Delhi 9,879 1,851 18.7

Kolkata West Bengal 4,573 1,485 32.5

Chennai Tamil Nadu 4,344 820 18.9Nagpur Maharashtra 2,052 737 35.9

Hyderabad Andhra Pradesh 3,637 627 17.2

Surat Gujarat 2,434 508 20.9

Pune Maharashtra 2,538 492 19.4

Faridabad Haryana 1,056 491 46.5

Ahmadabad Gujarat 3,520 474 13.5

Meerut Uttar Pradesh 1,069 472 44.2

Bangalore Karnataka 4,301 431 10.0

Jaipur Rajasthan 2,323 369 15.9

Kanpur Uttar Pradesh 2,551 368 14.4

Thane Maharashtra 1,263 351 27.8

Source: Census 2001, HDIL


12/14

Alchemy

12

SLUM REHABILITATION PROCESS

Source: SRA


13/14

HDIL

13

Income Statement Rs mn


Net sales 12,165 24,323 17,425 11,538 12,540

Growth (%) 176 100 (28) (34) 9

Total expenses 5,237 6,352 6,256 5,885 5,809

EBIDTA 6,502 16,895 9,157 3,614 4,491

OPM (%) 54 71 55 34 39

Other income 12,165 24,323 17,425 11,538 12,540

Interest 445 1,385 1,875 1,932 1,990

Depreciation 6 14 20 21 23

PBT 6,182 16,021 8,073 2,499 3,400

Tax 766 1,917 769 400 612

Net profit 5,416 14,104 7,303 2,099 2,788

Net profit margin (%) 45 58 42 18 22

Cashflow Statement Rs mn


Cash from operations

Net profit before tax 25,402 16,021 8,073 2,499 3,400

Depreciation 578 14 20 21 23

Working capital changes 23,854 15,706 8,386 2,520 3,423

Operating cash flow (55,673) (39,341) (12,389) (1,490) (1,718)

Capex 1,051 (451) (1,161) (253) (266)

Free-cash flow (54,622) (39,792) (13,550) (1,743) (1,984)

Increase in share capital 0 16,402 0 0 0

Debt increase/(decrease) 72,517 27,371 11,923 1,500 2,000

Miscellaneous expenses (24,086) (534) (1,034) 0 0

Cash flows from financingactivities

48,431 43,238 10,889 1,500 2,000

Net change in cash and cashequivalents

(6,191) 3,446 (2,661) (243) 16

Cash at the beginning of the year 1,105 48 3,494 833 590

Cash at the end of the year(5,086) 3,494 833 590 606

Ratios


Valuation (x)

EPS (Rs) 30.1 68.0 33.8 7.6 10.1

BVPS (Rs) 40.4 178.5 172.1 170.1 180.2

PER 2.0 8.9 6.7

P/BV 1.7 0.4 0.4 0.4 0.4

EV/EBITDA 2.5 2.5 6.5 17.3 14.4

EV/EBIT 2.5 2.5 6.6 17.4 14.5

Profitability (%)

EBITDA margin (%) 54.0 71.0 55.1 33.8 38.7

Net margin (%) 44.5 58.0 41.9 18.2 22.2ROE 118.8 64.6 18.0 4.6 5.8

ROCE 72.9 35.9 9.4 2.3 3.0

Turnover Ratios

Credi tors Turnover 13.8 13.7 13.1 15.7 18.2

(In months)

Inventory Turnover 18.2 59.1 111.6 138.3 150.6

(In months)

Debtor Turnover 1.9 0.9 0.7 1.6 1.6

(In months)

Balance Sheet Rs mn


Equity share capital 1,800 2,143 2,755 2,755 2,755

Reserves & surplus 5,468 34,229 42,013 44,112 46,900

Networth 7,268 36,372 44,768 46,867 49,655

Deferred tax l iab il ity 8 15 21 21 21

Total debt 3,757 31,127 43,051 44,551 46,551

Total sources of funds 11,033 67,515 87,840 91,439 96,227

Net block 236 527 561 564 566

Capital work-in-progress 3 52 127 127 127

Investment 1,650 2,126 4,580 4,809 5,049

Inventories 11,525 51,028 65,376 70,279 75,550

Sundry debtors 3,103 558 1,530 1,606 1,687

Cash & bank balance 48 3,494 833 590 606

Loans & advances 2,319 16,343 21,847 21,847 21,847

Current liabilities 7,219 4,917 6,849 8,219 9,040

Provisions 632 1,696 165 165 165

Net current assets 9,144 64,810 82,572 85,939 90,485

Total uses of funds 11,033 67,515 87,840 91,439 96,227

Source: Company, Alchemy


14/14

Alchemy

14

SalesArun Singh [email protected] 91-22-6639 9124/5

DealingChetan Chitroda [email protected] 91-22-6639 9134

Disclosure of interest statementAnalyst holding of the stock NO

Firm holding of the stock NO

Owners holding of the stock NO

DisclaimerThis report is not a solicitation or offer to buy or sell any securities or related financial products. The information and commentaries are also not meant to

be endorsements or offerings of any securities, options, stocks or other investment vehicles. The report is intended for general circulation and does not takeinto account the specific investment objectives, financial situation or particular needs of any particular person. The securities discussed in this report may

not be suitable for all investors. The appropriateness of any particular investment or strategy whether opined on or referred to in this report or otherwise will

depend on an investors circumstances and objectives and should be independently evaluated and confirmed by such investor, and advice should be sought

from a financial adviser concerning the suitability of the investment or strategy, taking into account the specific investment objectives, financial situation orparticular needs of the investor, before the investor makes a commitment to deal in an investment or implement a strategy.

Investment ideas and/or corporations discussed in this website may have a high level of volatility. High volatility investments may experience sudden and

large falls in their value causing losses when the investment is realised. Those losses may equal the original investment. Some investments may not bereadily realisable and it may be difficult to sell or realise those investments. Similarly, it may prove difficult to obtain reliable information about the value

and risks to which such an investment is exposed. Neither us nor any of our affiliates shall assume any legal liability or responsibility for any incorrect,misleading or altered information contained in this report.

Past performance is not necessarily indicative of future results and there can be no assurance that any investment will achieve comparable results or its

investment objectives. Investors may not get back the full amount invested and the net asset value of the investment will fluctuate. Exchange ratefluctuations may affect the return to investors.

Alchemy Share and Stock Broker Pvt. Ltd., their respective affiliate companies, associates, directors and/or employees may have investments in securities

or derivatives of securities of companies mentioned in this report, and may make investment decisions that are inconsistent with the views expressed in this

report.

ALCHEMY SHARE & STOCK BROKERS PVT. LTD.Navsari Building, 4th Floor, 240 Dr D. N. Road, Fort, Mumbai: 400 001. India

(Tel): 91-22-6639 9100 (Fax): 91-22-2203 3575

HDIL - Alchemy

Documents

Transcript of HDIL - Alchemy