Indian Equities: Country Club India Ltd. - Multibagger
equitiesra Multibagger
Apr 30, 2009
Country Club India Ltd. - Multibagger
CCIL - Country Club India Ltd is one of the fastest growing entertainment and leisure conglomerate in India. A Multi-Million dollar entity, CCIL is a pioneer in the concept of family clubbing in the country.
CCIL has established 205 properties of which 50 are owned and 155 are franchised properties.Presently it has 172 plus affiliations plus a global gateway via Country Vacations and RCI affiliation of 4000 resorts for its esteemed members.
CCIL has established 205 properties of which 50 are owned and 155 are franchised properties.Presently it has 172 plus affiliations plus a global gateway via Country Vacations and RCI affiliation of 4000 resorts for its esteemed members.
Some Financial Figures:
Market Cap - 130.93;
Book Value - 85.50;
Price/Book - 0.20; Div(%) - 20.00; Div Yield (%) - 2.37
Face Value - 2.00;
Reserves - Rs. 646.47 Cr
Networth - Rs. 667.98 Cr
Total No. of outstanding shares – 7,74,24,735
Promoters’ Holding – 3,10,66,705 (40.13%)
General Public Holding – 75,03,221 (9.69%)
Total Debt / Equity Ratio – 0.13
Around 30% of holding is with Institutions.
During the year 07-08 the Company has issued and allotted 4,32,912 Equity Shares of Rs. 10/- each on October 20, 2007 at a price of Rs. 515 per share (Rs. 105 after Stock split) upon partial conversion of Foreign Currency Convertible Bonds FCCB) of USD 5 Millions.
To augment the long-terms resources to the Company, the Company had raised funds by way of issue of Global Depository Receipts (GDRs), convertible warrants and equity shares through qualified institution placement mechanism. During 07-08, the Company has issued and allotted 6,00,000 warrants to the promoters and outsiders at a price of Rs. 600/- per warrant (Rs. 120 after Stock Split) convertible into equal number of Equity Shares of Rs. 10/- each. These warrants are due for conversion.
In the month of January, 2008 the Company has issued and allotted 18, 80,322 Equity Shares of Rs. 10/- each at a price of Rs. 770/- per Equity Share (Rs. 154 after Stock Split) to Qualified Institutional Buyers Also, the Company has issued 2, 21, 57, 065 Global Depository Receipts (GDRs) aggregating an amount of USD86.90 million representing 44, 31, 413 underlying Equity Shares of Rs. 10/- each issued at a price of Rs. 770/- per Equity Share in the month of January, 2008. These GDRs are trading at Luxemburg Stock Exchange, London. As on date 1, 71, 27, 065 GDRs are outstanding. In order to increase the liquidity of the shares, decrease the volatility and broad base the small investors, company came out with stock split of Equity Share of Rs. 10/- each into 5 equity shares of Rs. 2/- each fully paid-up.
Face Value - 2.00;
Reserves - Rs. 646.47 Cr
Networth - Rs. 667.98 Cr
Total No. of outstanding shares – 7,74,24,735
Promoters’ Holding – 3,10,66,705 (40.13%)
General Public Holding – 75,03,221 (9.69%)
Total Debt / Equity Ratio – 0.13
Around 30% of holding is with Institutions.
During the year 07-08 the Company has issued and allotted 4,32,912 Equity Shares of Rs. 10/- each on October 20, 2007 at a price of Rs. 515 per share (Rs. 105 after Stock split) upon partial conversion of Foreign Currency Convertible Bonds FCCB) of USD 5 Millions.
To augment the long-terms resources to the Company, the Company had raised funds by way of issue of Global Depository Receipts (GDRs), convertible warrants and equity shares through qualified institution placement mechanism. During 07-08, the Company has issued and allotted 6,00,000 warrants to the promoters and outsiders at a price of Rs. 600/- per warrant (Rs. 120 after Stock Split) convertible into equal number of Equity Shares of Rs. 10/- each. These warrants are due for conversion.
In the month of January, 2008 the Company has issued and allotted 18, 80,322 Equity Shares of Rs. 10/- each at a price of Rs. 770/- per Equity Share (Rs. 154 after Stock Split) to Qualified Institutional Buyers Also, the Company has issued 2, 21, 57, 065 Global Depository Receipts (GDRs) aggregating an amount of USD86.90 million representing 44, 31, 413 underlying Equity Shares of Rs. 10/- each issued at a price of Rs. 770/- per Equity Share in the month of January, 2008. These GDRs are trading at Luxemburg Stock Exchange, London. As on date 1, 71, 27, 065 GDRs are outstanding. In order to increase the liquidity of the shares, decrease the volatility and broad base the small investors, company came out with stock split of Equity Share of Rs. 10/- each into 5 equity shares of Rs. 2/- each fully paid-up.
For the year 07-08, Company's sales is Rs. 306 Cr & Net profit is Rs. 65 Cr.For the 9 months ending Dec'08, Company has achieved sales of Rs. 242 Cr & Net Profit of Rs. 20 Crore, last two quarters being unfavourable due to slow down. Still, EPS is around Rs 4.
Recent Acquisitions:
M/s. CHANAKYAPURI RESORTS PRIVATE LIMITED in Kolkata
M/s. ARTS AND ENTERTAINMENTS PRIVATE LIMITED in Cochin
M/s. JADE RESORTS PRIVATE LIMITED in MGR District
M/s. KOLET RESORT CLUB PRIVATE LIMITED in Ahmedabad
M/s. BRIGHT RESORTS PRIVATE LIMITED in Kearla
Acquisition of Property having 102 rooms in Dubai
Concerns:
This is into Hotels & leisure industry which is facing severe slowdown due to the economic crisis.
There is some amount of FCCB, which is still outstanding in the books of the company, this amount is close to about Rs 80 crore. However, at the same time, the company was holding about Rs 300 crore as cash in the books of the company as on March 31, 2008. They would have spent some cash for acquisition.
There is some amount of FCCB, which is still outstanding in the books of the company, this amount is close to about Rs 80 crore. However, at the same time, the company was holding about Rs 300 crore as cash in the books of the company as on March 31, 2008. They would have spent some cash for acquisition.
Positives:
The concept of FAMILY CLUB is catching up with Indians. And with burgeoning Middle class population & improving living standard, this industry will witness tremendous growth. The comforting and heartening factor here is that promoters of the company have been doing a creeping acquisition. The shareholding pattern of March has not been filed till date. Looking at various disclosure statements made by the promoter–the promoters have acquired close to 4.5% to 5% between December and middle of March, which I think is a big positive.
We have commonwealth games in India next year & this event will see the rerating of this industry.
So at the current price the risk reward is extremely favourable in favour of the later.
So considering all those factors, I think from Rs 16 one can expect a huge upside.
Apr 13, 2009
Huge Energy Resource for India (KG Basin)
According to RIL's CEO and President (Oil & Gas) PMS Prasad RIL's gas production from the Krishna-Godavari basin will reduce the government's fertiliser subsidy bill, for many power projects in Andhra Pradesh and Maharashtra, (Dabhol power plant), RIL gas will provide a new lease of life. And its usage in fertiliser production can reduce fertiliser subsidy
**India is an energy deficit economy, it is estimated that the transfer of wealth from India to the oil exporting nations amounted to $56 billion in 2007-08.
In addition to this, the government incurred a subsidy of $18 billion on petroleum fuels, and another $1.8 billion on LPG usage in 2007-08.
The subsidy bill on fertilisers, around $7 billion in 2007-08, is expected to touch $20 billion in FY 2009.
Peak production of oil and gas from KG-D6 is expected to be 5,50,000 barrels of oil equivalent per day which will account for about 40% of India’s total oil and gas production and will save wealth transfer of $10 billion. The peak 80 MMSCMD of gas production will eliminate a major portion of the current shortfall in gas availability in India.
The usage of gas as CNG will cut subsidy bill on transportation fuels. D6 gas usage in fertiliser production can reduce fertiliser subsidy.
**There is a shortfall of over 100 mmscmd. The KG-D6 field is expected to have a peak production of 80 mmscmd, which means that a major portion of the current shortfall in gas availability can be met once KG-D6 production reaches its peak.
Going by the current shortfall faced by the power and fertiliser projects and their connectivity to gas pipelines, around 30-35 mmscmd of KGD6 gas would go to the power sector and around 15-20 mmscmd would go the fertiliser sector.
Supply of 35 mmscmd gas to the power sector would result in increase in generation by around 8,000 MW of power.
Supply of 20 mmscmd gas to the fertiliser sector would deliver in increase in urea production of nearly 10 million tones per annum, which will result in total elimination of imports of urea in India.
Supply of gas to the power and fertiliser sector will also result in lower dependence on imported LNG for these plants. For example, 1 MMSCMD of gas can save Rs 550 crore per annum in transportation fuel subsidies for diesel alone. The benefits for petrol would obviously be higher. Similarly, the efficiency of distributed power is more than 70% and usage of 1 MMSCMD for distributed power generation can save Rs 500 crore per annum.
**India is an energy deficit economy, it is estimated that the transfer of wealth from India to the oil exporting nations amounted to $56 billion in 2007-08.
In addition to this, the government incurred a subsidy of $18 billion on petroleum fuels, and another $1.8 billion on LPG usage in 2007-08.
The subsidy bill on fertilisers, around $7 billion in 2007-08, is expected to touch $20 billion in FY 2009.
Peak production of oil and gas from KG-D6 is expected to be 5,50,000 barrels of oil equivalent per day which will account for about 40% of India’s total oil and gas production and will save wealth transfer of $10 billion. The peak 80 MMSCMD of gas production will eliminate a major portion of the current shortfall in gas availability in India.
The usage of gas as CNG will cut subsidy bill on transportation fuels. D6 gas usage in fertiliser production can reduce fertiliser subsidy.
**There is a shortfall of over 100 mmscmd. The KG-D6 field is expected to have a peak production of 80 mmscmd, which means that a major portion of the current shortfall in gas availability can be met once KG-D6 production reaches its peak.
Going by the current shortfall faced by the power and fertiliser projects and their connectivity to gas pipelines, around 30-35 mmscmd of KGD6 gas would go to the power sector and around 15-20 mmscmd would go the fertiliser sector.
Supply of 35 mmscmd gas to the power sector would result in increase in generation by around 8,000 MW of power.
Supply of 20 mmscmd gas to the fertiliser sector would deliver in increase in urea production of nearly 10 million tones per annum, which will result in total elimination of imports of urea in India.
Supply of gas to the power and fertiliser sector will also result in lower dependence on imported LNG for these plants. For example, 1 MMSCMD of gas can save Rs 550 crore per annum in transportation fuel subsidies for diesel alone. The benefits for petrol would obviously be higher. Similarly, the efficiency of distributed power is more than 70% and usage of 1 MMSCMD for distributed power generation can save Rs 500 crore per annum.
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