Navbharat Ferro Alloys Ltd

Navbharat Ferro Alloys Ltd.
NSE NAVBARFERO

Navbharat Ferro Alloys Ltd. has three main business divisions:

(a) Ferro Alloys (FA) contributes 57% of sales - consist of two plants - one in Andhra Pradesh (AP) producing manganese alloys - 125,000 TPA capacity & other in Orissa producing ferro chrome - 75000 TPA capacity. FAs are used in stainless steel making. Company supplies FA to steel mills like TISCO, JSW Steel, Jindal Stainless, Essar, SAIL, Mukand, etc. NBFL also exports to leading global players like Nucor Steel, USA, Usinor-EEC, Nippon Steel, Kawasho and
Hitachi, Japan, Posco, Korea, etc. It contributed a topline of Rs.336.29 crore and bottomline of Rs. -9.05 crore during 2005-06 and had a capital employed of Rs. 206.77 crore as on 31/3/2006.

(b) Power (26% of sales), key input in FA production (50% of production costs). Company has backward integrated into power generation. It has 82 mw coal based captive power plant (CPP) at AP and 30 mw CPP at Orissa. Captive power generation not only makes company self-reliant on power but also enables it to sell surplus power (at present ~ 50 mw) to APTRANSCO and in turn earn tax-free income on power sale. Company earns decent PBIT% of ~ 40% (+) in this business, as it is competitive producer of power.
It contributed a topline of Rs.150.99 crore and bottomline of Rs. 69.13 crore during 2005-06 and had a capital employed of Rs. 167.5 crore as on 31/3/2006. After providing for the inter division revenue the net topline was Rs 36.78 crore only.


(c) Sugar (17% of Revenues) located in AP. Company has capacity of 3,500 tons crushed per day (TCD), with 6 mn litre p.a. distillery and 9 mw of co-generation plant. It contributed a topline of Rs.102.70 crore and bottomline of Rs. 18.36 crore during 2005-06 and had a capital employed of Rs. 77.10 crore as on 31/3/2006.


NBFL is looking at further backward integration into chrome ores. It
has obtained mining license (on 30-year lease) for chrome ore in
Orissa. It is 85 acres of mining area with substantial reserves.
Main benefits of owing chrome mining rights are control over supply,
lower input cost, can increase capacity of FA, whenever required,
etc. However, dispute is going on against this and case has gone to
Supreme Court. Judgement is expected in next 6 months. If judgement
comes in favour of company, it will have positive impact on its
bottomline.


Updates from nse site

Going ahead, NBFL is set to emerge as a power and infrastructure company with additional contribution coming from sugar and ferrochrome businesses.

The expansion of the Power Plant at Paloncha,A.P. from 82 MW to 114 MW is scheduled to be completed in 2007-08.

Establishment of 64MW coal based Power Plant in Orissa to be implemented in a period of two years (in addition to the existing 30MW Power Plant in Orissa).
to set up a new integrated sugar facility at Shanti Ashramam (H), Venkatanagaram Village, Prathipadu Mandal in East Godavari district of Andhra Pradesh by the year 2008-09 of 2500TCD.

As against current enterprise value of ~ Rs. 755 crore (market capitalization of Rs. 575 crore (+) & borrowing of Rs. 180 crore ), intrinsic value of its business works out to be ~ Rs. 825 crore
sugar - Rs. 80 crore,
land development - Rs. 20 crore,
112 mw power - Rs. 245crore,
FA - Rs. 260 crore and
investment in pipeline Rs 130 crore (power) and Rs. 90Crore (sugar)
Thus, company's share is available very cheap - at almost half of its intrinsic value.

MC 86*13.36/2

Company declared dividend of Rs. 2/- per share (Rs. 2/- paid up)
in FY 2005. At CMP, dividend yield works out to be ~4%.

At CMP of 86 , share is trading at 5.4 times FY 2006-07 EPS of Rs.
15.9. In view of bright business outlook, buying the share at current
market price.

The share has shed some 30% from 135 during last one month in june 2006
hence cautious and only long term investment is advised at a targe of
Rs 120

I hold 20 share @91

Estimates for 2006-07


Gross Income 48800
Total Expenditure 31740
PBIDT 17060
(PBIDT margin 35.0%)
Interest 1780.
PBDT 15280
(PBDT margin 31.3%)
Depreciation 2500
PBT 12780
Provision for Taxation 1274

Net Profit 11506
EPS 13.9 on expanded capital base of Rs. 1655 lakhs

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#26 Today, 11:34 PM
indexed
Junior Member Join Date: Nov 2005
Posts: 9

Re: Experiments in Technical Analysis

--------------------------------------------------------------------------------

Reliance Petroleum Limited (“RPL”) has announced that its 580 KBPSD export oriented refinery, coming up in a Special Economic Zone at Jamnagar, is progressing as per schedule and is well on its way towards its scheduled completion by December 2008.

The Project has achieved significant progress on various fronts including engineering, procurement, construction and statutory approvals.

Highlights of key developments during the quarter are as follows:

• SEZ approvals received

• Basic engineering nearly completed

• Major purchase commitments made; All long-lead and critical equipments ordered

• Construction work begun and progressing rapidly and infrastructure readiness achieved

• More than 30,000 people working on the Project across locations globally


During the quarter, RPL received necessary approvals for setting up the Project as a unit in the SEZ at Jamnagar. The Company has also received environmental and other statutory approvals required for the Project.

The Company has achieved excellent engineering progress during the quarter. The basic engineering work is nearly complete and detailed engineering work is progressing as per schedule at various offices, seamlessly connected across the globe.

The Project has made significant progress on the procurement front. All long-lead and critical equipments as well as various bulk items have been ordered. Their deliveries have also begun at the site. The Company has made rapid progress on the infrastructure development and construction as well. The work front for several critical activities has been released and site grading is nearly complete. The road development as well civil works are in full swing.

During the last quarter, The Company has successfully completed its equity financing through an initial public offering, which received an unprecedented response from domestic and international investors and created several new records in the history of the Indian capital markets. RPL has also made significant progress on the debt funding of the Project and is working with a consortium of banks for raising syndicated loans of US$1.5 billion.

This quarter also marks the significant development of RPL’s strategic alliance with Chevron Corporation, USA. Chevron India Holdings, an indirect subsidiary of Chevron Corporation, purchased 225 million shares representing 5% of equity capital in RPL from Reliance Industries. Mr Jeet S Bindra, President of Chevron Global Refining has joined the Board of Directors of Reliance Petroleum with immediate effect.

RPL believes that the strategic relationship will benefit the Company as it will be able to leverage the combined strengths of RIL and Chevron in several areas. Chevron Corporation is the 5th largest integrated energy company in the World with operations spread across 180 countries and refining capacity of over 2 million barrels of crude oil per day.

Looking ahead, the global refining industry fundamentals continue to stay robust. Despite high crude prices, demand for petroleum products demonstrated strong resilience and reinforce confidence on the long term prospects. New capacities are lagging behind due to project delays
and cancellations. Limited additions to the global conversion capacity and widening light heavy differentials indicate that the complex margins would remain stronger even in the future.

Commenting on the progress Mr Mukesh Ambani, Chairman of Reliance Petroleum Ltd said “We are delighted with the unprecedented response to RPL’s IPO. Our source of inspiration is the trust that over a million shareholders have reposed in us.

I am encouraged by the significant progress achieved by RPL on various fronts during the quarter. The refinery project has taken-off in full swing and is well on its way towards its scheduled completion by December 2008. RPL’s world-scale, complex refinery is well poised to capitalise on the opportunities unfolding in the global refining scenario towards creation of superior and sustainable value for our shareholders.”

Indexed we are really PERPLEXED. What are you up to? It is clear you are very good in cut and paste technology

hey friend,

Keep it cool man, don't be in a hurry.

My advice to u is that if u can not make yours atleast don't ruin the others _____. and fill anything in this blank for future reference.

Well cheers

thanks to

inxsofme
karthikmarar

for the advice. I will try not to hurry