8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
1/9
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
2/9
SanghviMoversLtd.
COMPANY PROFILE
Sanghvi Movers Ltd, a flagship company of the Sanghvi Group, is one of the largest cranes hiring company in India, third largest in
Asia and ranked tenth largest in the world. The company's main business is operation of cranes. They are engaged in the business of
hydraulic trucks mounted telescopic and lattice boom cranes and crawler cranes with lifting capacity ranging from 20 tons to 800 tons.
The sectors serviced by the company include wind power, steel, power, refinery, cement, metals, construction and paper. The
company also has operations in power generation wind mills of 5.05 megawatts installed in states of Rajasthan and Karnataka.
SMLs service network includes various depots located at Pune, Vadgaon, Chakan, Nagpur, Jamnagar, Bharuch , Delhi, Cuttach
Chennai and others. The company's main business is operation of Cranes, which accounts for 95.9% of the revenues. The company's
extensive network all over India through various depots enables its customers to avail its services efficiently. In a process to increasethe geographical presence of Cranes, the Company proposes to open depot in Jamshedpur. In the next 2 3 years, the Company will
focus more on giving cranes to Power, Steel, Cement and Aluminium Plants, Refinery, Metro and Hydro Power.
2June23,2011
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
3/9
SanghviMoversLtd.
PRODUCTS
DemagCC
2400 Demag
HC
340 Demag
TC
2400
Gottwald Amk 500 KruppGMT350
3June23,2011
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
4/9
SanghviMoversLtd.
Sales MixDuring the last year, SML has been able to increase its share from the Power sector from 28% in FY 2010 to 38% in FY 2011. Almost 60.0%of the Revenues are now being generated from the Power and Windmill space together. With huge growth expected from these two
sectors, the future for SML seems promising.
28%16%
12%
1%1%
egmen w se evenue rea up
2011
Power
38%10%
8%
2% 2%
egmen w se evenue rea up
2010
Power
30%12%
WindMill
Cement
Refinery&Gas
Steel&Metals
22%
18%WindMill
Cement
Refinery&Gas
Steel&Metals
Metros,Roads&Bridges
er n us r es
Metros,Roads&Bridges
4June23,2011
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
5/9
SanghviMoversLtd.
INDUSTRYThe demand for cranes is derived from the infrastructure activity in the country. The Government continues to give priority to
infrastructure, road construction, housing, power and ports. The effect of such investments is noticeable in the economy. Demand for
Heavy Lift Cranes will continue to remain in demand due to investment in Ultra Mega Power Projects to add capacity of 80,000 MW
over the next 5 years, continuation of growth in Infrastructure including large scale investment in Oil & Gas refineries, road
construction, ports and nuclear treaty entered with U.S.A.
OPPORTUNITIES
The Company has been providing Heavy Lift, Plant Erection and Maintenance Services to various large scale projects. It has maintained
a good track record in terms of effective deployment of Cranes at competitive rates with due regard to time schedule as well as safety
and efficiency in operations. Huge opportunity lies in projects announced by Power Sector players under Eleventh Five Year Plan. It has
geared up to play major role in implementation of these power plants. The Company has versatile fleet of Cranes which meets all
requirements for construction of power plants.
THREATS
1. The Company's operations may get affected on account of increase in competition in Crane Hiring Business.
2. Delay in receivables could increase the working capital cycle for the Company.
3. Delay in the project execution due to economic slowdown.
RISKS AND CONCERNS
1. Challenges involved in maintaining optimal utilization and yield of fleet all times and ensuring minimal idle time between contracts.
2. Delay in infrastructure and core projects spending could result in downturn in revenues.
3. Overall slowdown in the economic activities within the country.
5June23,2011
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
6/9
SanghviMoversLtd.
FINANCIAL PERFORMANCESML is expected to grow at CAGR of 13.5% during the next two years based on demand expected particularly from the Power and Windmill
space. SMLs APAT is expected to grow at 13.2% CAGR during the next two years assuming the base case scenario. We expect SML to maintain its
EBITDA margin levels at slightly above 70.0% levels.
800
1,0001,200
n)
APAT
3,000
4,0005,000
mn)
Sales
2009 2010 2011 2012E 2013E0
200
400
600
`(In
2009 2010 2011 2012E 2013E
TotalSales 3,547 3,288 3,593 4,132 4,628
0
1,000
2,000`
(In
76
78
3,000
3,500
EBITDA&EBITDAMargin
APAT 1,011 904 863 928 1,106
66
68
70
72
74
0
500
1,000
1,500
2,000
2,500
%ofSales
`(Inmn)
6June23,2011
2009 2010 2011 2012E 2013E
EBITDA 2,740 2,527 2,558 2,932 3,275
EBITDAMargin 77 76 71 71 70
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
7/9
SanghviMoversLtd.
QUARTERLYPERFORMANCE
(Rs.mn) PROFIT
&
LOSS
(Rs.mn)
Y/EMar. Q4FY10 Q3FY11 Q4FY11
NetSales 853.6 805.3 1,043.7
Y/EMar. FY10 FY11 FY12E FY13E
NetSales 3,287.6 3,592.9 4,131.9 4,627.7
RMcost 108.0 146.7 244.0
Staffcosts 34.4 32.4 40.4
OtherExpenditure 53.2 46.6 64.4
TotalExpenditure 195.5 225.8 348.9
OtherOp Income 27.7 19.5 20.7 23.1
OpExp 509.6 678.8 789.0 893.0
EmployeeExp 122.4 140.2 161.3 180.6
AdminExp 156.8 235.4 269.9 302.3
EBITDA 661.9 582.2 697.7
Depreciation 215.1 235.7 252.7
EBIT 508.7
360.3
459.4
Total Expenditure 788.7 1,054.5 1,220.2 1,375.9
EBITDA 2,526.6 2,558.0 2,932.3 3,274.9
Depreciation 787.3 928.8 1,100.3 1,165.3
. . .
Interest 113.8 122.8 130.3
PBTinclOI 394.9 237.5 329.1
Tax 145.6 77.0 111.9
, . , . , . , .
Interest 474.7 492.0 647.4 687.9
PBTExcl.OtherIncome 1,264.5 1,137.2 1,184.6 1,421.7
OtherIncome 112.0 122.8 141.2 158.1
APAT 249.2 160.5 217.2
AEPS 5.8 3.7 5.0
EBIDTA% 77.5 72.3 66.9
NPM% 29.2 19.9 20.8
PBTIncl.OtherIncome 1,376.6 1,259.9 1,325.8 1,579.8
Tax 472.3 396.8 397.7 474.0
NetProfit 904.2 863.1 928.1 1,105.9
ExtraordinaryExp./(Income) 0.0 0.0 0.0 0.0
7June23,2011
Source:Company,
Sushil
Finance
Research
Estimates APAT 904.2 863.1 928.1 1,105.9
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
8/9
SanghviMoversLtd.
BALANCESHEET
(Rs.mn)
Ason31st Mar. FY10 FY11 FY12E FY13E
ShareCapital 86.6 86.6 86.6 86.6
Y/EMar. FY10 FY11 FY12E FY13E
Growth(%)
FINANCIALRATIOS
eserves , . , . , . , .
ShareholdersFunds 4,696.3 5,408.4 6,234.4 7,218.6
SecuredLoans 4,744.7 6,392.5 8,092.5 8,092.5
Unsecured Loans
. . . .
APAT (10.5) (4.5) 7.5 19.2
EBITDA (7.8) 1.2 14.6 11.7
Profitability(%)
EBITDAMargin 76.2 70.8 70.6 70.4
. . . .
CapitalEmployed 10,098.1 12,580.2 15,106.1 16,090.4
FixedAssets 8,812.9 10,789.4 12,089.1 11,923.7
Investments
0.0 0.0 0.0 0.0
Sundr Debtors 1,307.2 1,348.7 1,528.2 1,711.6
. . . . .
ROCE 18.4 13.8 12.8 14.2
ROE 19.3 16.0 14.9 16.4
PerShareData(Rs.)
Adj.EPS 20.9 19.9 21.4 25.5
Ad . CEPS 42.0 44.2 46.9 52.5
CashandBank 58.7 187.1 1,274.2 2,276.0
LoansandAdvances 328.0 635.8 635.8 635.8
Inventories 28.9 63.5 54.0 61.2
CurrentAssets
1,722.8 2,235.1 3,492.2 4,684.5
BVPS 108.5 124.9 144.2 169.8
Valuations(X)
PER 5.5 5.8 5.4 4.5
Price/Sales 1.5 1.4 1.2 1.1
P/BV 1.1 0.9 0.8 0.7
CurrentLiabilities 261.5 293.5 324.2 367.0
Provisions 176.1 150.9 150.9 150.9
NetCurrentAssets 1,285.2 1,790.7 3,026.3 4,297.6
MiscellaneousExp 0.0 0.0 0 0
EV/EBITDA 3.8 4.4 4.5 4.0
EV/Netsales 3.0 3.2 3.2 2.8
DividendYield(%) 1.7 2.6 2.1 2.4
TurnoverDays
Debtorsdays 140 135 135 135
8
Source:Company,SushilFinanceResearchEstimates
Total
Assets
10,098.1 12,580.2 15,106.1 16,090.4
June23,2011
Creditorsdays 201 149 150 150
8/3/2019 Sanghvi Movers Ltd - Portfolio Track Stock Review - June 11
9/9
SanghviMoversLtd.
Please Note:
The objective of this report is to provide fundamental information on stocks covered under our product Portfolio Track. These stocks are likely to witness price up move in
medium to long term. Companies are selected based on certain Fundamental / Technical indicators and it may be possible that our view on these stocks may have been
formed without meeting the company management. All the data appearing in this report is from sources believed to be reliable but we do not guarantee that it is correct oraccurate.
Disclaimer:
This report is prepared for the exclusive use of Sushil Group clients only and should not be reproduced, re circulated, published in any media, website or otherwise, in any
form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private Limited. Any unauthorized use, disclosure or public
dissemination of information contained herein is prohibited. This report is to be used only by the original recipient to whom it is sent.
This is for private circulation only and the said document does not constitute an offer to buy or sell any securities mentioned herein. While utmost care has been taken in
re arin the above we claim no res onsibilit for its accurac . We shall not be liable for an direct or indirect losses arisin from the use thereof and the investors are
requested to use the information contained herein at their own risk.
This report has been prepared for information purposes only and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description
of the securities, markets or developments referred to in the material. The information, on which the report is based, has been obtained from sources, which we believe to be
reliable, but we have not independently verified such information and we do not guarantee that it is accurate or complete. All expressions of opinion are subject to change
without notice.
9
Sushil Financial Services Private Limited and its connected companies, and their respective directors, officers and employees (to be collectively known as SFSPL), may, from
time to time, have a long or short position in the securities mentioned and may sell or buy such securities. SFSPL may act upon or make use of information contained herein
prior to the publication thereof.
June23,2011