TARGET ACHIEVED (53%) - SIL INVESTMENTS LIMITED
DATE: 23/10/2017
  • COMPANY NAME : TARGET ACHIEVED (53%) - SIL INVESTMENTS LIMITED
  • Description :

     

    Dear Readers,

     

    SIL Investment was recommended on 23rd Oct'17 at 329 Rs for the target of 450 Rs.....Today SIL has touched 502 Rs and giving 53% return within 1.5 Months.

     

    Book Profit as my given target achieved.

     

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    CMP: 329 Rs

     

    BSE Code: 521194

     

    NSE- SILINV

     

    Market Capital: 361.95 Cr.

     

    Face Value: 10

     

    52 Week Low / High: 84/335

     

    Book Value: 215

     

    Price/Book Value: 1.59

     

    Dividend (%): 15%

     

    Promoter Share Pledge – Nil

     

    TTM EPS – 36.3

     

    P/E – 9.23

     

    Part – 1 Company Overview:

     

    • The name of the company is SIL Investments with effect from March 21, 2007 with investment activities only

    • Originally it was Sutlej Cotton Mills promoted by late G.D. Birla and was named before Demerger of textiles divisions in the year 1995 Sutlej Industries Limited.

    • SIL is part of K.K. Birla group companies who has diversified interest in Fertilisers, Engineering, Textiles, Sugar, Tea, Media, Shipping Food Products, Media, Information Technology, Biotechnology, Shipping among others.

    • Its core investments are mainly in group companies shares, besides in Shares & Securities and Real Estate.

    • The company has two wholly owned Subsidiaries RTM Investment and Trading Co. Ltd. and SCM Investment and Trading Co. which in turn have one subsidiary company each.

    • Company has been granted a certificate of registration as an NBFC w.e.f. 22nd May, 2009 in the category of Non-deposit Taking Systematically Important NBFC (ND-SI).

    • Company income is in the form of rent income, dividend income plus investment in group companies

     

    Part – 2 SIL Investments Limited- Shareholding Pattern:

     

    Share holding Pattern

    Description

    Percent of Share (%)

    Promoters & Promoters Group

    62.75

    Public Holding

    37.25

    Total

    100

     

    Part – 3 Financial Focus:

     

    Focus on - Financial Results March 2017:

     

    • During the year (2016-2017) under review, the total revenue increased to 296.50 million in comparison to the previous year (2015-2016) revenue of 234.4 million up by 26.5% on YOY basis.

    • The EBITDA has increased from 141.6 million to 203.0 million up by 43% on YOY basis

    •  Profit after tax increased to 171.90 million from 125.50 million up by 36.9%.

     

    Focus on - Financial Results June quarter 2017:

     

    • For the quarter ended 30-09-2017, the company has reported a Standalone sales of Rs 35.18 Crore, up 241 % from last year same quarter September 2016 Sales of Rs 10.32 Crore.

    •  Company has reported net profit after tax of Rs 27.47 Crore in latest quarter compare to last year September 2016 quarter profit 7.67 Cr. up 258%.

     

    Investment Rational:

     

    1. SIL is part of K.K. Birla group companies means Strong Promoter Group

    2. Available at cheap P/E only 9.2 as Industry P/E is 45.4.highly undervalue.

    3. Strong 8% improvement in NPM on YOY basis and 26% improvement in NPM on QoQ basis.

    4. Robust almost 3 times growth in the revenue in September quarter 2017 result compare to September 2016

    5. Robust almost 3 times growth in the net profit in September quarter 2017 result compare to September 2016

    6. Wide scope in NBFC business as company has did registration as an NBFC.

    7. The company is planning to expand its activities, consistent with its status as a NBFC-SI so suspecting growth in top line and bottom line.

     

    Recommendation:

     

    • Stock CMP is 329 Rs. and stock is trading at P/E 9.23 & TTM EPS 36.3, based on all above investment points, stock may touch 450 Rs. Within 3 years’ time horizon.

     

     

    Please note:

     

    • Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

      Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

      Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.

     

     

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