Tuesday, 5 February 2019

ANMOL– INDIA’S LEADING COAL SUPPLIER UPCOMING “IPO – BSE SME SEGMENT”!



ABOUT THE ANMOL:
-Anmol India Limited (Anmol) incorporated in 1998 is engaged in business of import and supply of COAL & PET COKE to different types of industries in India.

-The primary product of Anmol is imported USA coal (US Napp Coal & USA ILB). The different types of coal Anmol trades in are Steam Coal, Petroleum Coal and Cooking Coal. Besides this it also trades in Indonesian Coal and Petroleum Coke.

-Anmol caters to demands of clients located in over 100 different areas in India. Anmol has its corporate office located at Ludhiana along with branches at Gandhidham, Ludhiana, Kapurthala and Guwahati.







FINANCIAL HIGHLIGHTS:
(All Fig, in Cr)
PARTICULARS
SEPT 2018
FY 2018
FY 2017
FY 2016
TOTAL INCOME
263.06
299.24
186.49
189.80
EBITDA
3.35
6.36
3.16
2.53
EBITDA MARGIN (%)
1.27%
2.13%
1.70%
1.34%
PAT
1.71
2.62
1.08
0.82
PAT MARGIN (%)
0.65%
0.88%
0.58%
0.43%
EPS
2.35
10.83
4.46
3.39
EQUITY PAID UP
7.28
2.42
2.42
2.42
FACE VALUE
10
10
10
10
BOOK VALUE
17.91
46.81
35.95
31.48
ROE (%)
26.33%
23.15%
12.49%
10.84%
ROA (%)
6.60%
3.47%
1.63%
1.49%
There is a CAGR Growth of ~25% in Total Income, ~58% in EBITDA & ~78% in PAT over the period of 3years.


BUSINESS STRATEGIES AND INDUSTRIAL OUTLOOK:
-Anmol has launched “Anmol Coal” app which is the 1st ever application for USA Coal in India. This app provides real time news, price updates and alerts on USA Coal, Indonesian Coal and Pet Coke. This helps the company is client retention and new acquisitions. This app has bought around 2000+ inquires in last year.

-Anmol is focusing to increase its retail market share and also form strategic alliances with large corporates for bulk sale which shall help the company in converting its stock quickly into sales thus reducing its inventory holding period.

-Company is expanding its footsteps in South India and has received positive 
feedback. It has strong foothold in Northern and North Western India. It will now focus on Indian ports located in South India and South East India.

-Anmol enjoys competitive strength in procuring huge quantity of stocks overseas at low margins, has ability to buy “Distress Cargo” on short notice adding value to suppliers by providing them with good discounts.

-India is one of the largest growing market for coal. The demand for coal is expected to increase from 10% in 2015 to 20% in 2035.
-As per 12th plan the demand of coal shall rise to 1373 MMT by 2021-22. As per EIA India’s thermal coal demand shall expand to 2.2% per year. As industrial electricity demand picks up and rural electrification (“Saubhagaya”) completes – the demand for power will outweigh the generation increase from renewable sources of energy such as COAL.

-India has a gap between demand and supply of cooking coal. The demand is projected to rise every year due to expansion of steel industry in India, Inferior quality of cooking coal available in domestic market, and stagnant reserves.   


PEERS & RECOMMENDATION:
-Anmol India Limited has filled an IPO Draft with SEBI to be listed on “BSE-SME” Segment. Anmol will raise funds through issue of 3,100,000 shares at Rs. 33 per share making the issue size of Rs. 10.23 Crs. The funds are to be utilized towards working capital requirement and general corporate purpose.

-As per the IPO Draft since the company falls under the “COAL” Industry it is compared with listed peer i.e Coal India Ltd and Gujarat Mineral Development Corporation Ltd. Anmol India enjoys Attractive ROE & P/BV ratios compared to listed peers.


Coal accounts for majority of primary commercial energy supply in India. With economy positioned to grow at the rate of 8-10% p.a, energy requirement shall also increase. Government nuclear energy programme, development of natural gas supplies, increased hydropower generation and emphasis on renewables will increase coal demand in future.

Thus based on all the above highlights and strong future outlook, We Recommend “BUY” for Anmol India Limited from long run perspective.



For buying and selling any unquoted / unlisted / delisted or suspended shares in physical or demat you can reach us at Contact No.91+ 09215709100 or Email us on mittalmanish2003@gmail.com


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