Marathwada Refractories Limited CMP: ₹370.50
January 29, 2016
Company Overview Marathwada Refractories Limited was incorporated on 2nd November 1979, at Mumbai. The company was engaged in manufacturing of magnesite ramming masses and refractory bricks. The company is in the process of identifying business opportunities.
Stock Details BSE code
502250
BSE ID
MARATHR
Face value (₹ )
10
No of shares (m)
0.7
52 week H/L
119.45/77.85
Market cap (₹ m)
Industry Overview
259
30 days avg vol (No)
1
Free float (₹m)
Manufacturing industry in India has gone through so many different phases of development over last decades. Since independence, the Indian manufacturing sector has gone through the initial phase of building the industrial foundation in 1950’s and early 1960’s, to the license–permit raj in the period of 1965–1980, to a phase of liberalization of 1990’s, emerging phase. Indian manufacturing sector currently contributes approximately 15-16% to GDP (2015) and gives employment to almost 12% (2014) of the country’s workforce.
65
Stock performance (%) 1M
3M
12M
Absolute
0.0%
-7.1%
-4.8%
Rel. to Sensex
3.8%
0.7%
9.9%
Financial Performance
Shareholding Pattern* (%) Promoters
FIIs
DIIs
75.00%
0.0%
Others
0.0%
25.00%
*As of September 2015
Relative Chart Marathwada Refractories Ltd
The company has reported a net loss of ₹0.1 million in FY’15, when compared to the profit of ₹0.1 million in FY’14. For the second quarter of FY16 the company reported a bottom line of ₹0.01 million.
Sensex
440 430 420 410 400 390 380 370 360 350 340
30,000
Table1: Key Financials
29,000 28,000
(Y/e March)
27,000
Sales (₹ m)
Jan/16
Dec/15
Oct/15
Nov/15
Sep/15
Jul/15
Aug/15
Jun/15
Apr/15
May/15
2Q FY15
2Q FY 16
-
-
-
-
-
25,000
NM
NM
NM
NM
24,000
EBITDA (₹ m)
0.0
0.0
0.0
0.01
0.01
22,000
Feb/15
FY 15
NM
23,000 Mar/15
FY 14
YoY Growth (%)
26,000
Source: Bloomberg
FY 13
EBITDA Margin
NM
NM
NM
NM
NM
PAT (₹ m)
(0.0)
0.1
(0.1)
0.01
0.01
EPS (₹)
(0.0)
0.2
(0.2)
0.16
0.08
NM
-720.3%
-226.5%
NM
NM
YoY Growth (%)
Source: Company, Karvy Investment Advisory
1 Initiative of the BSE Investors’ Protection Fund
Marathwada Refractories Limited Background and Business Description Marathwada Refractories Limited was incorporated on 2nd November 1979, at Mumbai. The company was engaged in manufacturing of magnesite ramming masses and refractory bricks. The company is in the process of identifying business opportunities.
Risks & Concerns Company already closed all operations. Management is searching for new business opportunities.
Board of Directors Table 2: Composition of Board Name
Relation with Company
Mr. H.S. Girish Gupta
Director
Mr. Ganapathy Venkatesh
Director
Ms. Aparna Goel
Director
Mr. Kapil Malhotra
Director
Mr. T Rajagopala Rao
Director
Mr. S Baaskaran,
Director
Source: Company
2 Initiative of the BSE Investors’ Protection Fund
Marathwada Refractories Limited Industry Overview (as per old business) Manufacturing industry in India has gone through so many different phases of development over last decades. Since independence, the Indian manufacturing sector has gone through the initial phase of building the industrial foundation in 1950’s and early 1960’s, to the license–permit Raj in the period of 1965–1980, to a phase of liberalization of 1990’s, emerging phase. Indian manufacturing sector currently contributes approximately 15-16% to GDP (2015) and gives employment to almost 12% (2014) of the country’s workforce. Manufacturing PMI in India surged to 51.1 in January 2016 from 49.1 in December 2015. Production and new orders recover from December's flood (Chennai) -related contractions. The new export inflows trend strengthened during January, amid reports from companies of improved demand. Employment was up, with headcounts added to across the consumer, intermediate and investment goods categories. Manufacturing PMI in India averaged 51.94 from 2012 until 2016, reaching an all time high of 55 in June of 2012 and a record low of 48.50 in August of 2013. Manufacturing PMI in India is reported by Markit Economics. The Nikkei India Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 500 manufacturing companies. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.
Competition analysis Company
CMP (₹)
Mcap (₹ m)
Rev (₹m)
OPM (%)
EPS (₹)
PE (x)
Marathwada Refractories Ltd
370.5
259.4
0.0
NM
NM
NM
Ramco Industries Ltd
103.0
8,926.3
7,531.5
10.1%
2.4
43x
Vertical Industries Ltd
6.3
48.8
0.5
NM
NM
NM
Source: BSE
3 Initiative of the BSE Investors’ Protection Fund
Marathwada Refractories Limited Financial Analysis The company has reported a net loss of ₹0.1 million in FY’15, when compared to the profit of ₹0.1 million in FY’14. Year end March
FY 13
FY 14
FY 15
Income statement (₹ million) Revenue
0.0
0.0
0.0
% growth
NM
NM
NM
EBITDA
0.0
0.0
0.0
% EBITDA margin
NM
NM
NM
Depreciation and Amortisation
0.0
0.0
0.0
EBIT
0.0
0.0
0.0
Interest PBT Tax (credit) expense Net profit % growth net profit
-
-
-
0.0
0.2
(0.1)
0.1
0.1
0.1
(0.0)
0.1
(0.1)
NM
-720.3%
-226.5%
109.8
109.9
109.7
Balance sheet (₹ million) Shareholder fund Long term liabilities Current liabilities Fixed assets Current assets
-
-
-
0.1
0.2
0.1
95.6
95.0
95.0
0.6
1.2
0.7
13.7
13.9
14.1
-0.6
-0.4
-0.8
Cash flow from investing
0.6
0.7
1.0
Cash flow from financing
-
-
-
Cash & cash equivalents Cash flow statement Cash flow operations
Per share data EPS (₹ )
(0.03)
0.2
(0.2)
CEPS (₹)
(0.8)
(0.6)
(1.1)
NA
NA
NA
156.8
156.9
156.7
DPS (₹) BVPS (₹) Financial Ratios % ROE
0%
0%
0%
0.0%
0.0%
0.0%
Debt/Equity
0.0
0.0
0.0
Interest coverage ratio
NM
NM
NM
Current ratio
4.4
5.5
5.6
100.4
64.7
107.5
ROCE
Cash ratio Source: Company, Karvy Investment Advisory
4 Initiative of the BSE Investors’ Protection Fund
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5 Initiative of the BSE Investors’ Protection Fund
