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Blog27 Jul 2023

Inkel Limited Financial Report FY23

Inkel Limited is a Project Management Consultancy. The Company is in providing total solutions for Infrastructure Projects from super-specialty hospitals and roads to bridges, conservation projects, institutional and industrial buildings, its expertise ensures innovative and cost-efficient solutions, while implementing effective risk management. The commitment extends to delivering projects that are not only environmentally and socially sustainable but also financially viable. Key Financial takeaways for FY23 compared to FY22 ( Consolidated ) 1. Revenue: The revenue from operations decreased by 10% in FY23, amounting to Rs. 82 crore, compared to Rs. 92 crore in FY22. The total revenue for FY23 was Rs. 101 crore, a decrease from Rs. 103 crore in FY22. The net profit of the Company increased 75% to Rs. 14.43 crore in FY23 vs 8.87 Cr in Fy22. 2. Expenses: The Company's expenses decreased by 5% in FY23, totaling Rs. 82 crore, as opposed to Rs. 87 crore in FY22. 3. Profit Before Tax (PBT): The profit before tax increased by 20% in FY23, reaching Rs. 18 crore, compared to Rs. 15 crore in FY22. This indicates improved operational efficiency and cost management. 4. Profit After Tax (PAT): The profit after tax increased significantly by 75% in FY23, amounting to Rs. 14 crore, compared to Rs. 8 crore in FY22. This suggests that the Company's tax burden decreased or that it achieved higher profitability. 5. Earnings Per Share (EPS): The earnings per share (basic and diluted) increased to Rs. 0.77 in FY23, up from Rs. 0.24 in FY22. This indicates better earnings available to shareholders for each outstanding share. 6. Net Assets and Equity: The net assets of the Company dropped by 5% to Rs. 451 crore in FY23, compared to Rs. 469 crore in FY22. Similarly, the total equity and liabilities of the Company also decreased by 5%, reflecting the overall financial position. 7. Net Cash Flow from operating activities: The net cash generated from operating activities significantly decreased to Rs. 10 crore in FY23, down from Rs. 58 crore in FY22 due to high trade receivables. This suggests a potential decline in the Company's operational cash flow. 8. Net Cash Flow from investing and Financial Activities: The net cash used in investing activities increased to Rs. 12 crore in FY23, compared to Rs. 1 crore in FY22. 9. Net Cash Flow from financial activities: The net cash used in financial activities increased to Rs. 17 crore in FY23, up from Rs. 32 crore in FY22. 9. Net Cash and Cash Equivalents: The net cash and cash equivalents at the end of FY23 amounted to Rs. 61 crore, a decrease from Rs. 81 crore at the end of FY22. This suggests that the Company had less cash reserves at the end of the year. Overall, the financial performance indicates that the Company experienced a decrease in revenue and cash flow, but managed to improve profitability with higher profits after tax. However, the decrease in net assets, equity, and cash reserves might raise some concerns about the Company's financial health and ability to meet its financial obligations in the future. New Assignment for INKEL Unlisted Share 1. Funding Source: The projects have received financial sanction from the funding agency, Kerala Infrastructure Investment Fund Board (KIIFB), amounting to ₹1100 Crores. 2. 11 Work Packages: The assignment comprises 11 work packages, focusing on various initiatives related to the Health and Family Welfare Department in Kerala. 3. PMKUSUM Ground Mount Project: INKEL is executing a ground-mounted solar project for the Kerala State Electricity Board (KSEBL) under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM) initiative. The solar plants will be set up in different locations across Kerala. 4. PMKUSUM Agriculture Pump Solarisation: As part of the ANERT Scheme, INKEL is implementing a 1MW solarization project for agriculture pumps in the districts of Kasaragod and Alappuzha. 5. Hybrid Rooftop Systems in Karnataka: INKEL is installing hybrid rooftop solar systems at various Panchayath Buildings in Karnataka under the Rural Development and Panchayat Raj (RDPR) department's initiative. 6. ANERT Smart City Project in Trivandrum: INKEL is working on a 600Kwp solar power project as part of the ANERT Smart City initiative in Trivandrum. During FY23, the Company didn't raise any funds through fresh issue of shares. https://unlistedzone.com/shares/buy-sell-share-price-inkel-limited-unlisted-shares/

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Blog18 Jul 2023

Sleepwell Ventures into a Strategic Acquisition of Kurlon Enterprises Limited

Sleepwell, a prominent player in the home comfort products industry, is embarking on a new venture by acquiring Kurlon Enterprises Limited (KEL), an established entity in the same sector. This move signifies a crucial shift in Sleepwell's business strategy towards industry consolidation, which could potentially lead to market dominance. An Overview of the Target Entity: Kurlon Enterprises Limited Kurlon Enterprises Limited, a well-established name in the manufacturing and marketing of foam and coir-based home comfort products, has seen a modest decline in turnover over the past three years, followed by stabilization. The downturn could signify a maturing market or potential challenges in scaling operations. However, Sleepwell's decision to acquire KEL may breathe new life into the company's growth prospects. The Nature of the Acquisition and Its Potential Implications This acquisition is an unrelated party transaction, suggesting that Sleepwell is venturing into an entirely new dimension of its business strategy. By taking over a company in the same sector, Sleepwell appears to be seeking industry consolidation, which could potentially strengthen its position in the market. The Strategic Objectives and Expected Effects of the Acquisition The acquisition hints at Sleepwell's strategic goals of market consolidation, customer base diversification, and potentially complementing distribution networks and production efficiencies. The transaction could pave the way for Sleepwell to dominate the market and benefit from operational synergies. As a result, the company might achieve better efficiencies and cost savings, which will contribute positively to their bottom line. Regulatory Approvals and the Projected Timeline Given that no government or regulatory approvals are necessary for the acquisition, the process can be expedited, eliminating the potential for bureaucratic delays. The transaction is anticipated to be complete by November 30, 2023. This allows ample time for both firms to strategize for integration and handle any potential disruptions. The Financial Aspect: Cost of Acquisition and Cash Consideration The acquisition involves a cash consideration, suggesting a straightforward transaction. However, the impact on Sleepwell's cash flow and balance sheet will depend on the company's current financial health. Sleepwell is acquiring approximately 94.66% of KEL's share capital at an equity valuation of INR 2150 crores. This brings the total value of KEL to approximately INR 2271 crores, equating to a per-share value of around INR 621. The Impact on Sleepwell's Control over KEL Sleepwell's acquisition of a majority stake in KEL means they will have significant control over the company's operations and decisions in the future. A Look at the Acquired Entity's Background Despite a recent dip in turnover, KEL's rich history and established market presence offer potential for growth under new management. Sleepwell could utilize KEL's experience and reputation to enhance market penetration and bolster customer trust. In conclusion, Sleepwell's acquisition of Kurlon Enterprises Limited marks a strategic step towards consolidating the home comfort products market. The success of this acquisition will largely hinge on Sleepwell's ability to seamlessly integrate KEL into its operations and harness the potential synergies. B) Implications for Kurl-On Limited Shareholders in the Wake of Sleepwell's Acquisition With Sleepwell's acquisition of Kurlon Enterprises Limited (KEL), shareholders of Kurl-On Limited are set to see significant changes. The sale of their entire stake in KEL will inject a substantial sum of INR 2150 Crores into their balance sheet. However, what remains to be seen is how this windfall will be distributed amongst the shareholders. The Financial Impact: Share Value A glance at the shareholding structure of Kurl-On Limited reveals that 85% of the stakes are held by Manipal Holdings and Maharashtra Apex Corporation. Given the total outstanding shares of Kurl-On Limited standing at around 1.5 crores, the per-share value post-acquisition would be INR 1433, calculated by dividing the total acquisition value of INR 2150 Crores by the total outstanding shares. A Crucial Question: Distribution of Proceeds The primary question that arises in the aftermath of this acquisition is how the company's management will choose to distribute the resulting income. The income from the sale could be utilized in multiple ways, including reinvestment into the business, share buybacks, debt reduction, or dividend distribution. However, the decision on the distribution of the proceeds lies entirely in the hands of Kurl-On Limited's management and will be influenced by the company's financial health, strategic plans, and shareholder interests. It will be interesting to see how this situation unfolds and what it entails for the shareholders of Kurl-On Limited. https://unlistedzone.com/shares/buy-sell-share-price-kurlon-enterprise-limited-unlisted-shares/

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Blog18 Jul 2023

HDB Financial Unlisted Share Performance (June 2022 vs June 2023)

Financial performances form the backbone of any company's health check. They offer valuable insights into the company's current standing and the potential for future growth. Today, we delve into HDB Financial's unlisted share results, comparing their performance from June 2022 to June 2023. A Closer Look at Net-Interest Income Net-Interest Income, a critical measure of a financial institution's performance, is the difference between interest income and finance costs. For HDB Financial, the net interest income has shown promising growth from 1326 Cr in June 2022 to 1500 Cr in June 2023. This significant increase demonstrates potential improvement in the company's lending operations. Examining Other Income "Other income" might seem like a relatively nebulous term, but it can include anything from fees and commissions to gains from foreign currency transactions. In HDB Financial's case, we notice a minor drop in Other Income from 867 Cr in June 2022 to 813 Cr in June 2023. While this decline might initially be concerning, it's important to note that "Other Income" can be highly variable, being dependent on a range of different factors. Provisioning: A Key Financial Safeguard Provisioning refers to the funds that financial institutions set aside as a safeguard against potential future losses, such as loan defaults. For HDB Financial, the provisioning has decreased from 400 Cr in June 2022 to 266 Cr in June 2023. This reduction could signal that HDB Financial is experiencing fewer defaults or predicting fewer loan losses moving forward. The Tale of Profit After Tax (PAT) Profit After Tax (PAT) is the net profit earned by the company after subtracting all its direct and indirect taxes. A noticeable increase in PAT is observed from 441 Cr in June 2022 to 567 Cr in June 2023 for HDB Financial, indicating a healthier and more profitable bottom line. Earnings Per Share (EPS) - A Shareholder's Perspective Earnings Per Share (EPS) serves as an indicator of a company's profitability and is of particular interest to shareholders and potential investors. The EPS of HDB Financial has risen from 5.58 in June 2022 to 7.16 in June 2023, suggesting an improved profitability on a per-share basis. The Dynamics of Gross Non-Performing Assets (Gross NPA) Gross NPA refers to the percentage of a bank's loans that are not repaid or are in danger of default. A significant decrease is observed from 4.95% in June 2022 to 2.48% in June 2023 in HDB Financial's case. This implies that the company's asset quality has improved, a positive sign for any financial institution. Conclusion While comparing HDB Financial's unlisted share results from June 2022 and June 2023, we find several areas of substantial growth and improvement. Despite minor hiccups along the way, the key metrics of profitability and asset quality have shown promising improvement. This comparative analysis provides a clearer understanding of the company's financial health, aiding both shareholders and potential investors in their decision-making processes. <a href="https://unlistedzone.com/shares/buy-sell-hdb-financial-services-unlisted-shares-hdb-finance-share-price/">https://unlistedzone.com/shares/buy-sell-hdb-financial-services-unlisted-shares-hdb-finance-share-price/</a>

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Blog12 Jul 2023

SBI Mutual Funds Limited FY23 Results Update

SBI Mutual Funds Limited has announced its annual report for the financial year 2023. As per the consolidated financial report, in FY23, the Company clocked 2303 crore revenue from operations as against Rs. 1957 in financial year 2022, indicating an increase of 17%. The net profit of the Company increased to Rs. 1339 crore as against Rs. 1082 crore in FY22, indicating a significant increase of 23%. Statement of Profit and Loss <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> <td>%Change </td> </tr> <tr> <td>Revenue from Operations </td> <td>2303</td> <td>1957</td> <td>+17%</td> </tr> <tr> <td>Employee Benefits </td> <td>326</td> <td>288</td> <td>+13%</td> </tr> <tr> <td>Depreciation and Amortisation </td> <td>33</td> <td>33</td> <td>0%</td> </tr> <tr> <td>Profit Before Tax </td> <td>1770</td> <td>1429</td> <td>+23%</td> </tr> <tr> <td>Profit After Tax </td> <td>1339</td> <td>1082</td> <td>+23%</td> </tr> <tr> <td>EPS</td> <td>26.62</td> <td>21.56</td> <td>+23%</td> </tr> </tbody> </table> Balance Sheet <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> <td>%Change </td> </tr> <tr> <td>Total Assets </td> <td>4983</td> <td>3797</td> <td>+31%</td> </tr> <tr> <td>Total Equity and Liabilities </td> <td>4983</td> <td>3797</td> <td>+31%</td> </tr> </tbody> </table> Cash Flow Statement <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> </tr> <tr> <td>Net cash from operating activities</td> <td>1007</td> <td>1199</td> </tr> <tr> <td>Net cash from Investing activities</td> <td>-973</td> <td>-841</td> </tr> <tr> <td>Net cash from Financial activities</td> <td>-227</td> <td>-171</td> </tr> <tr> <td>Net cash and cash equivalents at the end of the year </td> <td>2</td> <td>4</td> </tr> </tbody> </table> https://unlistedzone.com/shares/sbi-mutual-fund-unlisted-shares/

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Blog12 Jul 2023

Resins & Plastics Ltd FY23 Results Update

Resins & Plastic Ltd has announced its annual report for the financial year 2023. In FY23, the Company clocked 252 crore revenue from operations as against Rs. 213 in financial year 2022, indicating an increase of 18%. However, the has experienced 16% drop in its net profit from 12 crore in FY22 to 10 crore in FY23. <h3>Profit and Loss Statement </h3> <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> <td>%Change </td> </tr> <tr> <td>Revenue from Operations </td> <td>252</td> <td>213</td> <td>+18%</td> </tr> <tr> <td>Materials Consumed </td> <td>199</td> <td>161</td> <td>+23%</td> </tr> <tr> <td>Employee Benefits </td> <td>13</td> <td>12</td> <td>+8%</td> </tr> <tr> <td>Depreciation and Amortisation </td> <td>1</td> <td>0.92</td> <td>+8%</td> </tr> <tr> <td>Profit Before Tax </td> <td>13</td> <td>15</td> <td>-13%</td> </tr> <tr> <td>Profit After Tax </td> <td>10</td> <td>12</td> <td>-16%</td> </tr> <tr> <td>EPS</td> <td>23.52</td> <td>28.32</td> <td>-17%</td> </tr> </tbody> </table> <h3>Balance Sheet </h3> <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> <td>%Change </td> </tr> <tr> <td>Total Assets </td> <td>212</td> <td>181</td> <td>+19%</td> </tr> <tr> <td>Total Equity and Liabilities </td> <td>121</td> <td>181</td> <td>+19%</td> </tr> </tbody> </table> <h3> Cash Flow Statement </h3> <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> </tr> <tr> <td>Net cash from operating activities</td> <td>8</td> <td>2</td> </tr> <tr> <td>Net cash from Investing activities</td> <td>-5</td> <td>-14</td> </tr> <tr> <td>Net cash from Financial activities</td> <td>-3</td> <td>-2</td> </tr> <tr> <td>Net cash and cash equivalents at the end of the year </td> <td>10</td> <td>0.67</td> </tr> </tbody> </table> https://unlistedzone.com/shares/buy-sell-share-price-resin-plastic-limited-unlisted-shares/

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Blog12 Jul 2023

Elofic Industries FY23 Results Update

<h4>P & L Statement</h4>   <table width="100%"> <tbody> <tr> <td>Particulars (in Cr)</td> <td>FY23</td> <td>FY22</td> <td>%Change </td> </tr> <tr> <td>Revenue from Operations </td> <td>346</td> <td>321</td> <td>+7.7</td> </tr> <tr> <td>Profit Before Tax</td> <td>55</td> <td>59</td> <td>-6.7</td> </tr> <tr> <td> Profit for the year</td> <td>39</td> <td>42</td> <td>-7</td> </tr> <tr> <td>EPS</td> <td>158.10</td> <td>167.70</td> <td>-5</td> </tr> </tbody> </table> During the past year, the company's sales and other income amounted to Rs. 354 crore, which is an increase of 8.86% compared to the previous year's figure of Rs. 325 crore. The sales within the country for the same period were Rs. 184 crore, showing a growth of 8.77% from the previous year's Rs. 169 crore. The company achieved its highest-ever export sales during the year, reaching Rs. 150 crore. This represents an increase of Rs. 113 crore (8.20%) from the previous year's figure of Rs. 138 crore. Unfortunately, the profit before interest, depreciation, and tax has decreased by an unspecified amount from the previous year. The profit before tax (PBT) has decreased by Rs. 3 crore, and the profit after tax (PAT) has decreased by Rs. 2.4 crore compared to the previous year. It's important to note that these profit figures include the earnings from Elofic USA, a wholly-owned subsidiary of the company based in the USA. https://unlistedzone.com/shares/elofic-industries-limited-share-price-buy-sell-unlisted-shares-of-elofic-industries-limited/

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Blog10 Jul 2023

NSDL's Anticipated IPO: A Detailed Analysis of Valuations and Shareholders' Stake

The National Securities Depository Limited (NSDL) has recently announced its plans to go public, filing its Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO) on July 7, 2023. This news has significantly stirred the Indian securities market as this IPO marks a comprehensive Offer For Sale (OFS) by the existing shareholders of NSDL. An impressive roster of financial institutions, including IDBI Bank, SBI, HDFC Bank, Union Bank, and the National Stock Exchange (NSE), are prominent shareholders in NSDL. These institutions are gearing up to offload their stakes in this impending IPO. In this ensemble of shareholders, the NSE holds a substantial chunk of NSDL with a total of 48 million shares. As the IPO approaches, the NSE is prepared to sell approximately 18 million shares from its existing pool. As per the DRHP, the NSE acquired these shares at an average price of Rs 12.28 per share. This scenario brings us to the pivotal question - what valuation is NSDL targeting for its IPO? Taking a comparative approach with Central Depository Services (India) Limited (CDSL), NSDL's listed peer, provides a preliminary insight. The current market capitalization of CDSL stands at Rs 12,000 crores. However, NSDL significantly overshadows CDSL by generating double its revenue and boasting a considerably higher cash flow from operations. Considering these factors, it is reasonable to speculate that NSDL might target a higher valuation for its IPO, possibly around Rs 15,000 crores and with 20 cr shares outstanding as on 31.03.2023, the price per share could be ~750 per share. To give a broad estimate of the potential income for NSE from this IPO, we can multiply the anticipated per-share price by the number of shares being sold. As per the provided calculation, "= Rs 750 * 18 million = Rs 1,350 crores." For NSE shareholders, the NSDL's IPO could open a windfall of benefits. The additional income garnered from this IPO could drive the NSE's profitability up in the years to come and potentially boost dividend payouts. This is certainly an event to watch out for, promising a reshaping of the market landscape. Remember, these calculations are preliminary, and the official IPO price band announcement will provide the final valuation. The NSE, which is planning a significant divestment in this IPO, could benefit significantly from this high valuation. The upcoming IPO of NSDL promises to be an intriguing event for all market participants, with the potential to reshape the landscape of the securities market. It is essential for potential investors and existing shareholders to stay updated and make informed decisions. Stay tuned to our platform as we continue to deliver comprehensive and insightful content navigating the complex yet fascinating world of investments and capital markets.

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Blog6 Jul 2023

Pharmeasy's Debt Retirement and Funding Options: UnlistedZone Analysis

Introduction In recent news, it has been reported that Pharmeasy, a leading online pharmacy in India, is looking to retire its substantial debt of ₹2,400 crores. The debt was obtained from Goldman Sachs last year, and now Pharmeasy faces the decision of either selling some of its successful businesses or seeking funding from investors. UnlistedZone, a trusted source of analysis on unlisted stocks, provides a closer look at this development and its implications. Retirement Options and Founders' Stance: Pharmeasy has two primary options for retiring its debt. The first option is to sell some of its thriving businesses, including Mahaveer Medicos, Ascent Welness, and Thyrocare, which are engaged in the wholesale distribution of medicines and diagnostic services. The second option, which the founders prefer, is to raise funds from investors rather than parting with any of their businesses. Investment Proposal and Valuation: According to recent reports, Manipal Group, along with existing investors such as TPG and Temasek Holdings, is considering investing ₹1,000 crores in Pharmeasy. The deal is rumored to be structured around a valuation of approximately ₹5,000 crores, marking an 85% decrease from the previous valuation of ₹34,000 crores during the pre-IPO funding round in 2021. It is worth noting that in the unlisted market, Pharmeasy's share price had surged to ₹140 in anticipation of the IPO. However, global inflation and a slowdown in startup funding have led to a correction in valuations across the industry. Standalone Financial Performance: While the financials of Pharmeasy's holding company, API Holdings, indicate significant losses in the past, there are positive signs of improvement. In the previous fiscal year (FY22), API Holdings at Standalone level reported a revenue of ₹346 crores and a loss of ₹700 crores. However, in the first eleven months of the current fiscal year (FY23), the company witnessed a revenue increase to ₹423 crores, accompanied by a narrowed loss of ₹150 crores. This improved performance suggests a positive trajectory for Pharmeasy, which may bolster investor confidence. Survival Prospects and Shareholder Outlook: If Pharmeasy can secure funding at a lower valuation and continue to narrow its losses, it stands a chance of surviving and potentially regaining shareholder trust. The proposed right issue, aimed at allowing existing shareholders to participate in the funding round, further highlights the company's commitment to its investors. However, it is essential to note that the information provided in this article is based on media reports, and official confirmation from the company's promoters is pending. Until such confirmation is received, it is prudent to consider these details as speculative. Conclusion: Pharmeasy's pursuit of debt retirement and funding options is a crucial development in the company's journey. As the company weighs the decision to sell its successful businesses or raise funds from investors, the support from Manipal Group, TPG, and Temasek Holdings offers a glimmer of hope. Despite the substantial decline in valuation, Pharmeasy's narrowed losses and improved revenue demonstrate signs of progress. UnlistedZone will continue to monitor these developments closely and provide further analysis as more information becomes available. Disclaimer: The views expressed in this article are based on the information available at the time of writing and are subject to change as more updates are released. This article is for informational purposes only and should not be considered as financial advice. Please conduct thorough research and consult with a professional financial advisor before making any investment decisions. <a href="https://unlistedzone.com/shares/pharmeasy-share-price-unlisted-2022/"> https://unlistedzone.com/shares/pharmeasy-share-price-unlisted-2022/</a>

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Blog5 Jul 2023

Lava Partners with Reliance Jio: Opportunity for Pre-IPO Investors

Introduction Lava, a leading Indian handset player, is considering a strategic partnership with Reliance Jio, one of the country's largest telecom operators. This collaboration holds significant potential for pre-IPO investors, as it aims to manufacture internet-enabled feature phones and smartphones. By leveraging Jio's expertise and distribution network, Lava is set to tap into the booming feature phone market and take advantage of the smartphone production-linked incentive scheme. In this blog post, we will explore the details of this exciting opportunity for pre-IPO investors interested in Lava's growth prospects. Lava's Partnership with Reliance Jio Lava's potential partnership with Reliance Jio opens up a world of opportunities for the company and its investors. By joining forces, Lava can leverage Jio's hardware and design capabilities, enabling the development of co-branded feature phones and smartphones. This strategic move positions Lava to capitalize on Jio's extensive distribution network and tap into a larger customer base. Driving Volumes in the Feature Phone Segment The feature phone market still holds a significant share of mobile users in India. Lava's collaboration with Jio allows them to target this segment more effectively, potentially driving higher volumes. With Jio's backing, Lava can tap into the demand for internet-enabled feature phones, offering consumers affordable and feature-rich options. Leveraging the Smartphone Production-Linked Incentive Scheme India's smartphone production-linked incentive scheme presents a lucrative opportunity for manufacturers. Lava's partnership with Jio not only grants them access to Jio's design capabilities but also positions them as potential contract manufacturers of Jio Bharat phones. This collaboration allows Lava to leverage the incentives offered by the government and strengthen its market position. The Significance of Pre-IPO Investment: For investors looking to capitalize on Lava's growth trajectory, the pre-IPO phase presents a unique opportunity. As Lava embarks on this strategic partnership with Reliance Jio, pre-IPO investors can enter the investment journey at an early stage. By investing in Lava before it goes public, investors can potentially benefit from the company's growth potential, market expansion, and increased valuation. Growth Potential and Market Share Lava's partnership with Jio comes at a time when the feature phone market is evolving. With established players such as Transsion and Nokia HMD leading the segment, Lava's collaboration with Jio can help boost its market share. This presents an attractive proposition for pre-IPO investors seeking exposure to a rapidly expanding market. Evaluating the Partnership's Impact As with any investment, thorough evaluation is crucial. While Lava's partnership with Jio holds immense promise, investors should carefully consider factors such as market demand, competitive landscape, and the company's execution capabilities. Conducting due diligence and consulting with financial advisors can help investors make informed decisions regarding their pre-IPO investment in Lava. Conclusion Lava's potential partnership with Reliance Jio represents an exciting opportunity for pre-IPO investors seeking exposure to the Indian handset market. By joining forces with Jio, Lava can tap into the vast potential of the feature phone segment, leverage the smartphone production-linked incentive scheme, and expand its market share. However, investors must conduct comprehensive research and analysis to gauge the investment https://unlistedzone.com/shares/lava-international-limited-share-price-buy-sell-unlisted-shares-of-lava-international/

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Blog4 Jul 2023

Tata Technology: A Successful Year of Robust Growth and Profitability

In the dynamic and competitive world of technology services, Tata Technology, a global leader in engineering and product development digital services, has showcased impressive growth and profitability in fiscal year 2023. This remarkable performance is a testament to the company's strategic foresight, operational efficiency, and commitment to delivering shareholder value. Revenue on the Rise In the fiscal year ended March 31, 2023, Tata Technology reported a noteworthy surge in its operational revenue, reaching INR 4,414.18 crore from INR 3,529.57 crore in the previous year. A growth that underscores the effectiveness of the company's business strategies. Furthermore, the company's other income (net) witnessed a rise, growing to INR 87.74 crore in 2023 from INR 48.80 crore in 2022. The culmination of these earnings brought the total revenue for the year to INR 4,501.92 crore, indicating a substantial leap from the previous year's total of INR 3,578.37 crore. Astute Expense Management In spite of the rise in revenue, Tata Technology demonstrated prudent financial management by keeping its expenses in check. The company's spending on technology solutions dipped slightly to INR 682.48 crore in 2023, a slight decrease from INR 688.54 crore in 2022. Meanwhile, outsourcing and consultancy charges escalated to INR 569.66 crore, up from INR 399.80 crore in the previous year. This shift illustrates Tata Technology's strategic reliance on external expertise to foster growth. Furthermore, an increase in employee benefits expense to INR 1,929.46 crore in 2023, up from INR 1,512.70 crore, signifies the company's investment in its human resources. Despite these changes, the total expenses for the year were capped at INR 3,705.77 crore, reflecting a modest increase from INR 2,991.54 crore in the preceding year. Strong Profitability Tata Technology's astute business practices yielded a substantial increase in the company's profit before tax for the fiscal year ending March 31, 2023, which stood at INR 796.15 crore, up from INR 586.83 crore. After accounting for current and deferred tax, the net profit for the year was INR 624.03 crore, a significant rise from INR 436.97 crore in 2022, implying a robust profitability trend for the company. Other Comprehensive Income Besides its primary operations, Tata Technology also reported other comprehensive income, including remeasurement of post-employment benefit obligations and exchange differences on translation of foreign operations. The total comprehensive income for the year was INR 707.59 crore, marking a significant improvement from INR 434.01 crore in the previous fiscal year. Earnings Per Share (EPS) Another highlight of Tata Technology's fiscal year 2023 performance was the substantial growth in its earnings per share (EPS). The basic EPS rose to INR 15.38 from INR 10.77 in the preceding year. Meanwhile, the diluted EPS was INR 15.37, marking an increase from the INR 10.77 figure of the previous year. Market Valuation and IPO Prospects Currently, Tata Technology's shares are available in the unlisted market at INR 1100 per share. Given the EPS of 15.38x, the price-to-earnings (P/E) ratio stands at 71x. This figure contrasts with its nearest peer, KPIT, which is trading at a P/E of 78x. The upcoming IPO of Tata Technology, likely to be priced at a P/E of 50x, could make the shares available at a price above INR 800+. Conclusion Fiscal year 2023 has been a testament to Tata Technology's growth and profitability. This trajectory, as reflected in its Profit & Loss statement, shows a strong upward trend in revenue, profit, and earnings per share. Such performance underscores the company's strategic acumen and its unwavering commitment to creating value for its shareholders. As the company gears up for its IPO, the financial landscape appears promising for Tata Technology, promising a bright future for its investors. https://unlistedzone.com/shares/tata-technologies-limited-share-price-buy-sell-unlisted-shares-of-tata-technologies/

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Blog30 Jun 2023

Religare's Strategic Stake Sale in Care Health Insurance

"Religare's Strategic Stake Sale in Care Health Insurance: An Indicator of Robust Growth and Market Resilience" 1. Religare's Stake Sale Strategy In the vibrant financial landscape, strategic business maneuvers often signify significant growth trajectories. One such development is on the horizon for Religare Enterprises Limited. As per recent reports, the company is planning to sell a 6-7% stake in Care Health Insurance, with an aim to raise approximately 1200 Crores. 2. The Valuation of Care Health Business The anticipated deal highlights an impressive valuation of Care Health's business at around 17000 Cr. This estimate not only showcases the substantial market presence of the subsidiary but also sets the stage for potential industry-wide implications. The sheer size of this valuation is bound to stir interest among stakeholders and competitors alike. 3. Outstanding Shares and Investor Opportunities Delving into the specifics, as of 31.03.2023, Care Health had about 94 Crores of outstanding shares. Should the deal materialize as planned, this could result in a price per share of approximately 182. This figure is particularly noteworthy considering the shares were valued around 140 in the unlisted market a few months back. This increase paints a picture of a promising opportunity for shareholders who had the foresight to invest in the company. 4. Impressive FY23 Performance: A Testament to Care Health's Growth In FY23, Care Health outdid itself by recording a Gross Written Premium (GWP) of 5100 Crores and a Profit After Tax (PAT) of 245 Crores. These figures represent the highest performance in the last five years. The PAT is a vital indicator of a company's profitability and underscores Care Health's sound financial standing. 5. A Positive Combined Ratio: Marking Profitable Underwriting Adding to the string of positive news, Care Health turned their combined ratio positive this year. In the insurance industry, this metric is crucial as it indicates profitable underwriting. A positive combined ratio is a testament to the company's operational efficiency and signals potential for sustainable growth. 6. Conclusion: The Impact of the Stake Sale on the Insurance Industry In conclusion, the proposed stake sale by Religare Enterprises Limited in Care Health Insurance signifies more than just a strategic financial decision. It is an indicator of Care Health's stability and growth potential as a leading player in the insurance market. Observers and industry players are keenly watching the developments, which promise to influence the company's future direction and the broader landscape of the insurance industry

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Blog28 Jun 2023

Sheela Foam to Acquire Kurlon Enterprise: An In-depth Analysis

1. Acquisition Details: Sheela Foam Ltd has announced its plans to fully acquire its rival, Kurlon Enterprise Ltd. The acquisition will be completed by buying 100% of the company in two separate transactions, amounting to a total cash consideration of Rs 3,250 crore. The deal is expected to be concluded within a few months. 2. Impact on Market Share The acquisition of Kurlon Enterprise is poised to significantly boost Sheela Foam's market share. Currently, Sheela Foam holds a market share of 20-25% in India's organized mattress segment. Post-acquisition, it is expected to nearly double, raising the market share to 35-40%. 3. Geographic and Operational Synergies Sheela Foam, known for its Sleepwell brand, has a strong market presence in the North and West of India. On the other hand, Kurlon, known for the Kurl-on brand of mattresses, is established in the South and East. The merger of these two firms will not only broaden their geographic reach but also lead to cost benefits and operational synergies, enhancing their overall efficiency. 4. Financial Impact The merger is expected to add around Rs 900 crore to the topline of the listed company at the consolidated level. Moreover, Sheela Foam will be able to source more of the raw material TDI (Toluene Di-Isocyanate) at lower rates due to combined buying for both companies, leading to significant cost savings. Operational synergies at the factory level are also expected, along with the optimization of capacity utilization at both companies' plants. 5. Response from the Companies As of now, both Sheela Foam and Kurlon have not responded to queries about the possible deal. 6. Indian Mattress Market Overview The mattress market in India, dominated by a few branded and many non-branded companies, was worth around $1.7 billion in FY19. It is expected to more than double to $2.8 billion by FY24. The share of the organized, branded mattress industry grew from 29% of the market in FY14 to 35% in FY19 and is expected to reach 40% by FY24. The total market for mattresses in India is estimated at around 18.6 million units, with new demand at around 7 million units per year. 7. Valuation of Kurl-On Enterprise Share As per the FY22 Balance Sheet, the total outstanding shares are 3.65 Cr. Based on this, the per-share value is calculated to be 890 per share. This valuation provides an additional lens to evaluate the financial implications of the acquisition. https://unlistedzone.com/shares/buy-sell-share-price-kurlon-enterprise-limited-unlisted-shares/

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