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Neueon Towers Ltd. Stock Analysis

Small Cap
Evaluated by 383 users | BSE: 532887 | NSE: NTL |
Transmission Towers / Equipments
Sujana Towers was incorporated in 2006; is engaged in manufacturing of telecom towers and transmission towers. The company was previously a division of Sujana Steels. The tower division was de-merged from Sujana Steels and formed a separate entity. The company has tower manufacturing capacity...

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.
Value Creation
 Sep'09Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 10.55%16.65%10.6%6.04%6.36%6.31%1.25%-9.93%-18.04%-28.92%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6991,1682,0411,8001,8032,1181,39820364.241.9
Y-o-Y Gr. Rt.-67.2%74.7%-11.8%0.2%17.5%-34%-85.5%-68.4%-34.7%
Adjusted EPS (Rs.) 15.511.0810.210.180.270.74-25.74-87-81.82-107.32
Y-o-Y Gr. Rt.--28.5%-7.9%-98.2%50%174.1%-3578.4%NANANA
Book Value per Share (Rs.) 139.8891.15147147.72148.06148.79115.2828.29-53.53-160.67
Adjusted Net Profit 32.154.5530.91.43.8-146-492-463-607
Net Op. Cash Flow (Rs. Cr.) 57-272191195-3921,01419426257766.7
Debt to Cash Flow from Ops 4.87-1.393.835.97-4.471.8311.9910.114.5336.82
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.
Neueon Towers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -26.9%-52.9%-68.9%-34.7%
Adjusted EPS -224%-431%NANA
Book Value per Share -201.6-201.7-211.70
Share Price -44.7% -33.2% -29.6% 147.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Sep'09Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 11.5116.757.310.120.190.5-20.4-120.82660100.41
Operating Profit Margin (%) 13.0813.911.469.412.3612.216.79-35.86-538.69-1025.67
Net Profit Margin (%) 4.594.662.60.050.080.18-10.41-242.18-721.2-1448.3
Debt to Equity 0.950.840.961.512.272.43.5516.43-8.68-2.71
Working Capital Days 1511602443434364475502,4706,7295,618
Cash Conversion Cycle 88651161862802453092,2846,2625,304
Entity Percentage Holding
Promoters 37.27%
Institutions 0.06%
Non-Institutions 62.67%
Pledged *99.9999.9999.9999.9999.9999.9999.9999.9999.9999.99
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Neueon Towers's performance infers:

Neueon Towers earnings have declined by -431%, whereas share price has depreciated -33.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Neueon Towers share prices over the last 10 years. Here is what we found out:

Neueon Towers share price has depreciated -37.3% annually over the past ten years.

Sujana Towers was incorporated in 2006; is engaged in manufacturing of telecom towers and transmission towers. The company was previously a division of Sujana Steels. The tower division was de-merged from Sujana Steels and formed a separate entity.

The company has tower manufacturing capacity of 1,28,125 TPA. Sujana Towers has received ISO 9001:2000 certifications for its

Sujana Towers was incorporated in 2006; is engaged in manufacturing of telecom towers and transmission towers. The company was previously a division of Sujana Steels. The tower division was de-merged from Sujana Steels and formed a separate entity.

The company has tower manufacturing capacity of 1,28,125 TPA. Sujana Towers has received ISO 9001:2000 certifications for its quality management.

The company clientele includes PowerGrid, Reliance Infocomm, Tata Projects, BHEL, Reliance Energy, Nortel, Bharti, Idea, BSNL, L&T, Ericsson and many more.

The tower major owns subsidiaries namely Digitech Business Systems, Hong Kong, Sujana Transmissions and Telesuprecon

Products and Services

Telecom Towers- The company is engaged in designing and manufacturing of telecommunication towers. It uses customized structural analysis programs and CAD techniques to design cost effective and customer specific product. Sujana Towers provides a range of pipe type structure used in radar towers and switch towers.

Transmission Towers- Under this the company manufactures high tension (HT) towers for the power sector.  The company designs tower ranging up to 400 KV. Sujana Towers manufactures various types of Lattice Towers from slender single user options to large multi user structures.

Sujana Towers also provides range of services such as engineering and consultation, turnkey installations and inspection and maintenance.

 Outlook

The company plans to focus on capturing major share in the market in both telecom and transmission sector.

The company is in the process of expanding the capacity at Chennai by adding another 1,00,000 TPA.

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

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