MUMBAI: Exedy India, a small-cap auto ancillary multi-national company, is delisting its shares from Indian bourses by offering exit route to the minority shareholders.
The company, in which the promoters own 93.9% stake including a 69.1% held by Exedy Corporation of Japan, has proposed to acquire the remaining 6.1% through the reverse book building method. It has fixed a floor price of Rs 141.4 per share for the offer.
The indicative price, however, has fixed higher Rs 178.5 at which the foreign promoter is willing to acquire the shares from the public shareholders.
The book building process begins on January 24 and will close on January 31, 2012. Exedy India shares ended flat at Rs 214 on the BSE on Tuesday. The delisting buzz helped the stock touch its monthly high of Rs 224.8 recently but it fell subsequently to the current level.
--------------------------------------------------------------------------------------------------------
http://www.rareindianshares.info/2013/02/exedy-india-limited-ceekay-daikin.html
The company, in which the promoters own 93.9% stake including a 69.1% held by Exedy Corporation of Japan, has proposed to acquire the remaining 6.1% through the reverse book building method. It has fixed a floor price of Rs 141.4 per share for the offer.
The indicative price, however, has fixed higher Rs 178.5 at which the foreign promoter is willing to acquire the shares from the public shareholders.
The book building process begins on January 24 and will close on January 31, 2012. Exedy India shares ended flat at Rs 214 on the BSE on Tuesday. The delisting buzz helped the stock touch its monthly high of Rs 224.8 recently but it fell subsequently to the current level.
Satyakam Mishra
The company recorded a net loss of Rs 6.5 crore on sales of Rs 196 crore in year ended March 31, 2011. Exedy India, which was formerly known as Ceekay Daikin, is a clutches manufacturing company supplying to the original equipment market. It is a subsidiary of Exedy Corporation of Japan (the erstwhile Daikin Manufacturing Co). --------------------------------------------------------------------------------------------------------
http://www.rareindianshares.info/2013/02/exedy-india-limited-ceekay-daikin.html
Satyakam Mishra
ReplyDeletereachsatyakam@gmail.com
http://equityconnect.blogspot.com/
Typically, well established FMCG companies top the list of high dividend paying stocks, as can be seen in the list below. However the list of good dividend paying stocks mentioned below also includes companies from other sectors like Pharma, IT, consumer durables, Power/Energy, etc.
1. Hindustan Unilever (HUL) - This is the biggest FMCG company in India. It has adividend pay out ratio of about 65% - 85% ! one of the highest in the industry. Other positives for this stock include - less sensitive to economic downturns, low debt, highest ROE (over 120% - indicating a highly efficient business model), and decent growth. However, note that recently HUL has been losing market share to Godrej Consumer Products, especially in rural areas. So although I wouldn't put all my money on this stock, this is definitely a stock you want to have in your portfolio if you are focusing on dividend.
2. Tata tea - Again, one of the good FMCG stocks to have in your portfolio.Dividend payout ratio of over 75%.
3. Castrol India - This is a debt free company with a dividend payout ratio of over 75% on average. Other attractive numbers - ROE of over 70%, almost debt free. The company has been growing at modest pace of 10% in the past 3 years (due to recession), however bottom line has grown by over 30%.
4. Nestle India - Again, a good FMCG stock with average dividend payout ratio of over 70%.
5. Godrej Consumer Products Limited (GPCL) - Godrej has better growth prospects than Hindustan Unilever, I think. It is also a good dividend paying stock, with dividend payout ratio of over 65%.
6. ITC - Indian Tobacco Company - average dividend payout ratio of about 65%, in 2009, it was 94%!.
7. Glaxo Smithkline Pharma (GLAXO) - a good pharmaceutical company, withdividend payout ratio of over 60%. I had mentioned this stock in the list of best stocks to invest in 2009, and it has indeed given over 2 times the index returns.
8. HCL Technologies - A good IT stock. Dividend payout ratio of over 60%. However, note that IT stocks are in general vulnerable to slowdown in Europe, US.
9. Clariant Chemicals - This is also a good value stock. Dividend payout ratio of over 60%.
10. Alstom Projects India - This is one stock I am planning to put my money on, not just for its high dividend payout ratio of 35%-40%, but also because this is one company which is going to benefit by the possible 'nuclear energy boom' in the country. With the Indo-US nuclear deal passed, India will see lot of investments in building Nuclear reactors. Alstom is one (of the several other) players to be benefited by this.
11. CRISIL - Crisil is the leading credit rating agency in India with a market share of over 60%. Crisil has a dividend payout ratio of around 45%. Must have stock in your portfolio.
12. Blue Star - Blue star is the market leader in India in commercial air conditioner business. It has a dividend payout ratio of over 35% and a highly efficient business model with ROE of nearly 50%. Moreover, with increasing summer temperatures throughout india, Air conditioners is something you can bet a portion of your money on.
The above is not an analysis or recommendation to buy the stocks, but it is certainly a good list from which you can pick your 'best dividend paying stocks'. I myself own several of the above stocks. Especially the last 3 stocks in the list are not exactly 'best dividend paying', but they are good dividend paying stocks which have one of the best growth prospects.
Satyakam Mishra
ReplyDeletereachsatyakam@gmail.com
http://equityconnect.blogspot.com/
We looked at the RoE trend of ET 500 companies over the last five years to identify those that have consistently improved shareholder value. We found that two out of every five companies in the current listing have improved their RoE in FY11 from the previous year's levels.
In addition, there were 10 companies which have improved their RoEs consistently over the last four years. These 10 companies are from various sectors and no one sector dominates the list. Lubricants companyCastrol India, plastic products and printing ink maker Uflex, and engineering design consultant Engineers India feature in the first three spots in the list of 10 based on their latest RoEs. The three are also among the companies to record the highest gain in RoEs in the last five years.
Each of the 10 companies, which have demonstrated a consistent improvement in their RoE, reported an impressive double-digit return on shareholders' capital in FY11. Castrol's shareholders earned a whopping return of 93% on equity in FY11. It means the company was able to earn a net profit that was nearly equal to its total equity.
The ET 500 list also includes two companies — Nestle and Colgate Palmolive — which reported more than 100% RoE in FY11. Both companies are from the FMCG sector, and recorded net profits in excess of their respective total equity. Companies such as these with well-established businesses and relatively lower requirement of capital expenditure tend to report a higher RoE.
There are 11 companies in the ET 500 rankings which reported a more than 50% RoE in FY11 and 20 more had RoEs in the range of 30-50%. The presence of five multinational companies (MNCs) in the list of top 30 companies with high RoEs reflects the effectiveness of the business model of these players. Of these, three companies including Nestle, HUL, and Colgate belong to the FMCG sector. Castrol and consumer durables player Whirlpool are the other two MNCs.
What is surprising is the fact that only two IT players — TCS and MphasiS — were able to make it to the top 30 list despite the high profitability of the sector. This could be because of higher amount of reserves and surplus on the books of IT companies due to the high cash generating nature of the business.
Coal India and Muthoot Finance, which listed recently, made it to the top 30 list during their debut year itself. Muthoot reported a RoE of 51.5% whereas Coal India's RoE was 36.7% in FY11
While the media reports indicate that the process on demerger of the surplus land is moving forward, Tata Communication is still awaiting decision from government, said senior vice president of corporate strategy, Srinivasa Addepalli.
ReplyDeleteHe feels the land demerger will help simplify capital structure for the company. "The demerger of surplus land can help us raise equity as well," he added.
Talking about the business, Addepalli indicated that the company is still in a comfortable position and the operating profits have also been improving. He also mentioned that the internal cash generation has also improved over the last several quarters.
Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos.
Q: What's the latest that you can share with us on the demerger of land front?
A: There is nothing new or specific that the company has to share about the demerger of the surplus land. We are waiting for the decision from the government.
Media reports seem to indicate that the process is moving forward. We believe that’s a good news. If it gets done at the earliest, it will be great for the shareholders as well as for the company.
Q: How does it help the company?
A: The surplus land has been a distraction from our regular business operations. It helps the company simplify its capital structure. It has played some constraints on our ability to raise equity funding or any other alternatives on our balance sheet. We believe this will help simplify our funding options as we go forward.
Q: What do you intend to do with the high amount of debt that’s sitting on your balance sheet now?
A: The amount of debt is not so high compared to the way the business has been progressing. We are still in a comfortable position. Our operating profits have been improving. Therefore, our internal cash generation has also improved over the last several quarters.
We obviously like to find ways to reduce the intensity of debt, which is happening now through improving our cash accruals and making sure that we fund our future investments mostly through our generation. If the options of equity open up, we’ll look at what's the best way forward at that time.
Q: There has been some optimism about the kind of numbers that Neotel has been showing, particularly in the last quarter. What kind of turnaround have you witnessed there?
A: Neotel is a start up in South Africa, building some very critical infrastructure. It has created a wonderful position in the South Africa telecom market, which is large and growing. Therefore, the investments that Neotel has made there are very critical to that market.
The revenue growth has been spectacular over the last few years. In second quarter, Neotel has turned EBITDA positive. It's a natural progress for any start-up telecom business. We are confident that the performance will continue.
Q: Do you expect to see substantial improvement from margins even from what you have reported last quarter?
A: Our business as a whole has been growing. Even our global voice business, which is a very mature and almost zero growth industry globally, will continue to show growth in volumes, revenues and improvement in our margins quarter-on-quarter by improving our productivity and operating efficiencies.
Similarly, our data business has shown substantial growth of nearly 12-13% per annum on an average in a very large market. The revenue growth there is translating into improved margins because we have built a very strong platform of infrastructure as well as product capabilities.
The revenue growth has translated into improved profits. This has been our strategy for the last few years. We have invested in capabilities in infrastructure and the revenue growth has started to translate into profits.