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Ajmera Realty & Infra India Ltd. Stock Analysis

Small Cap
Evaluated by 527 users | BSE: 513349 | NSE: AJMERA |
Construction - Real Estate
Shree Precoated Steels (SPSL) is engaged in producing best quality coated flat steel products. It was earlier known as RVS Steels and Allied Industries and C S Ajmera and Associates took over the company in the year 1986. The name was  changed to present one in the 1986.Currently SPSL is...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ajmera Realty & Infra India Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.11%7.14%2.83%2.6%4.88%7.76%9.58%10.51%8.09%4.81%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 17215879.978.4165316277370382344
Y-o-Y Gr. Rt.--7.8%-49.6%-1.9%109.9%92%-12.2%33.2%3.2%-9.7%
Adjusted EPS (Rs.) 6.610.924.374.577.2411.9718.4123.1921.29.24
Y-o-Y Gr. Rt.-65.5%-60%4.6%58.4%65.3%53.8%26%-8.6%-56.4%
Book Value per Share (Rs.) 100.04113.12108.8111.62117.16126.61142.26158.64172.24180.01
Adjusted Net Profit 23.438.715.516.225.742.565.382.375.232.8
Net Op. Cash Flow (Rs. Cr.) 41.2-23.8-21-71.2-67.711959.4-116-345-17.9
Debt to Cash Flow from Ops 3.14-8.08-12.15-4.68-3.962.817.49-4.44-2.5-54.25
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ajmera Realty & Infra India Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8%15.9%7.5%-9.7%
Adjusted EPS 3.8%5%-20.5%-56.4%
Book Value per Share 6.798.24.5
Share Price -2.6% -6.5% -29% -22.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.7710.243.934.146.339.8213.715.4112.815.24
Operating Profit Margin (%) 25.2825.3226.6129.0327.4526.2738.5637.4333.3330.36
Net Profit Margin (%) 14.4726.2520.3222.1915.8914.4423.8722.8519.999.59
Debt to Equity 0.360.480.660.840.640.740.880.921.411.52
Working Capital Days 9341,0122,8073,8812,2131,2631,6011,3461,4911,856
Cash Conversion Cycle 4905691,3242,6591,3627129748059171,185
Entity Percentage Holding
Promoters 67.95%
Non-Institutions 32.05%
Pledged *9.405.645.645.425.075.077.338.098.098.10
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ajmera Realty & Infra India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ajmera Realty & Infra India Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ajmera Realty & Infra India Ltd.'s performance infers:

Ajmera Realty & Infra India Ltd. earnings have grown by 5%, whereas share price has depreciated -6.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ajmera Realty & Infra India Ltd. share prices over the last 10 years. Here is what we found out:

Ajmera Realty & Infra India Ltd. share price has depreciated -10.3% annually over the past ten years.

Shree Precoated Steels (SPSL) is engaged in producing best quality coated flat steel products. It was earlier known as RVS Steels and Allied Industries and C S Ajmera and Associates took over the company in the year 1986. The name was  changed to present one in the 1986.

Currently SPSL is a part of the $300 million Ajmera Group of Companies. The company offers wide range of coating options on any metal surfaces that includes stainless steel.

The company has received ISO 9001

Shree Precoated Steels (SPSL) is engaged in producing best quality coated flat steel products. It was earlier known as RVS Steels and Allied Industries and C S Ajmera and Associates took over the company in the year 1986. The name was  changed to present one in the 1986.

Currently SPSL is a part of the $300 million Ajmera Group of Companies. The company offers wide range of coating options on any metal surfaces that includes stainless steel.

The company has received ISO 9001 certification by Det Norske Veritas, Netherlands.

Products

SPSL's facility has been set up over 250,000 sq. meters of land at Sanaswadi near Pune

The company manufactures products such as pre-painted galvanised steel coils and sheets, galvanized steel coils and sheets, cold rolled steel coil and hot rolled products. Each of these products has a production capacity  of 100,000 TPA, 180,000 TPA, 240,000 TPA and 300,000 TPA.

The company markets these products under the brand name METACOLOR, METAGALVA and METACOR.

Outlook

There has been rise in steel prices over the year and it is observed that world steel industry is shifting towards Asia. India is a major player in the steel industry. Shree Precoated Steels aspires to become one of prominent manufacturer and supplier of colour coated and galvanized strips in Asia by 2010 and growth in steel industry will certainly help to achieve the vision of the company.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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