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BUY
A S S OC IA T ED S TO NE I N DU S T RI ES
LONG TERM PROPOSITION
Rating
Buy
CMP (`)
65
98
Upside (%)
51
Retail Desk
15 April 2015
Company Description:
Established in 1945, during the time of the British Raj, Associated Stone
Industries (Kotah) (ASIKL) has a long and distinguished history of providing its
customers with beautiful, sophisticated and exotic products for the last 70 years
hence, ASIKL still holds the largest quarries in the world spread across 10 sq kms
at Ramganjmandi, situated in Rajasthan, the home of the most flawless Kotah
Stone.
CORP.
Key Data
BSE Code
NSE Code
Reuters code
Bloomberg Code
Sensex
Face Value (`)
Mcap (` Cr.)
52 week H/L (`)
2 Wk Avg Qty
Share holding,
December14
Promoters
Corporates
Foreign
Public
Performance
(%)
3M
Stock-ASIKL
47.7
BSE 200
4.2
BSE 500
4.3
502015
ASOCSTONE
ASOS.BO
ASIK IN
28799
5
86
71/22
17000
Holding %
70.4
7.2
0.5
21.9
ASIKL produces a staggering 15 crore sq. ft. of Kota Stone each year. It is
equipped with the best diamond tool units for cutting, sawing & shaping various
natural stones, and produces some of the finest natural stones, all at par with
global standards.
Wind Power:
ASIKL has installed machines with a total of 4.75MW wind power capacity in
Tamil Nadu, Karnataka and Maharashtra. These plants contribute to the
reduction in Carbon-Di-Oxide emissions to the extent of 4000 tonnes per year.
Under the Kyoto Protocol of the United Nations Framework Convention on
Climate Change (UNFCCC), the company has been successful in getting these
projects registered under Clean Development Mechanism (CDM) with the
Executive Board at Bonn, Germany. ASIKL will soon become eligible for receiving
Carbon Credits for the next ten years from April 2011.
To Foray into Solar Energy:
Apart from wind power, ASIKL is also exploring the possibility of venturing into
solar power generation which again is a part of its green initiative. All these
efforts are only a small part of the plans the company has for sustaining the
environment and proves that green power is a major cornerstone of its policies.
LTD
6M
58.5
13.9
13.8
12M
170.8
35.4
36.5
Year-March
http://www.asistone.com
Vijay Dave
vijaydave@sunidhi.com
Ph: 91-22-6760 7700
Sales
PBIDT
Interest
PBDT
Depreciation
PBT
Tax
PAT
Equity
Reserves
Book Value (`)
EPS (`)
CEPS (`)
OP Margin (%)
PAT Margin (%)
P/E
(GMDV)
9MFY15A
9MFY14A
135.3
23.2
5.0
18.2
4.9
13.3
5.8
7.5
91.6
14.0
4.7
9.3
5.9
3.4
1.7
1.7
5.7
9.4
17.1
5.5
1.3
5.8
1.5
1.9
(` crore)
FY13A
FY14A
FY15E
FY16E
169.6
34.5
7.4
27.1
7.8
19.3
6.4
12.9
6.6
71.7
59.3
9.8
15.7
20.3
7.6
130.7
29.3
5.8
23.5
7.9
15.6
5.5
10.1
6.6
80.8
66.2
7.7
13.6
22.4
7.7
180.0
40.1
8.0
32.1
6.6
25.5
8.9
16.6
6.6
97.4
78.8
12.6
17.9
22.6
9.2
5.1
205.0
45.9
9.5
36.4
8.0
28.4
9.9
18.5
6.6
115.9
92.8
14.0
20.1
22.4
9.0
4.6
ASIKLs wholly owned subsidiary ASI Global Limited (ASIGL) Mauritius has
acquired Al Rawasi Rocks and Aggregates L.L.C, Fujairah U.A.E (having lime
stone quarry & stone crusher unit) for a consideration of AED 21.71 million
(US$5.915 Million) or for `36.7 crore. As the unit is non operational, the
ASIGL will be investing further about AED 43.63 Million (US$11.89 Million or
`69 crore.) towards quarry development, plant & machinery & working
capital margin. The unit is expected to re-start its commercial operation in
the near future.
New Initiatives
Financial
Equity capital is `6.6 crore. With reserves of `81 crore, the book value of the
share works out to `66.0. Debts of `40 crore as at H1FY15 give the DER of
0.48:1. The value of the gross block is `119 crore. Cash, short term/long
term loans and in investments totally were `30.9 crore. (`23.4/share) as at
H1FY15.
Prospects
With a new government having been formed at the center, with a strong
mandate to stimulate economic growth, the outlook for the construction &
realty sectors appears positive in the medium-to-long term.
The recent spate of reforms from the government will help gradually revive
the domestic economy and augurs well for the company as an improved
Capex from the private sector will ensure a strong revival in the companys
fortunes.
The Planning Commission (a department formed to develop and coordinate
investment plans for the central government) had projected a US$1 trillion
investment in infrastructure in the 2012-17 period, and the new government
has expressed an intent to remove bottlenecks and barriers hindering new
investment; growth in investment particularly in infrastructure and
industrial projects is expected spur demand for construction over the next
12-18 months. This augurs well for ASIKL.
Sunidhi Research |
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