TITAN:

• TATA Group
• Marketing watches and Jewellery
• FY 2003 : Debt of Rs.467 Crores : Debt equity ratio of 3.8 : PAT of 18.3 Cr Vs Interest outgo of Rs.41.3 Cr.
• FY 2012 : Debt of Rs.11 Crores : Debt equity ratio of 0.03 times. Cash and Bank Balance of Rs.967 Crore.
• Since 2003, steady reduction in debt – year on year, without compromise on growth.
• Since 2003, Networth increased 18 times and sales increased 11.8 times.
• Downsized loss making European operations.
• Share price appreciated over 100 times in last 10 years.

Debt Equity Ratio:

• Debt refers to the loans received by the company. Since the loan attracts interest rates to be paid, extent of loan availed by the company with reference to its equity could be one of the indicators if the company is healthy.
• D:E Ratio could be reduced due to twin factors of reduction in debt or increase in net worth or both.
• Debt could be reduced by infusing own capital or exiting from non-core assets/businesses or by raising rights issue.

Media and Entertainment :

• 40 Media and entertainment stocks listed in stock exchange.
• Stocks Gained 46% Vs sensex gain of 19%
• Industry grew 11.7% to Rs.72800 Cr in Cy 2011.
• Benefited from India’s economic expansionand demographic trends.
• Poised to grow 13% to Rs.82300 Cr in CY 2012
• Expected to grow 77% to Rs.145700 Cr by CY 2016 due to stong demand in Tier 2 and Tier 3 cities.
• Recent government announcement of increase in FDI to 74% in broadcast distribution was ositive.
• Multi System Operator (MSO) have to undertake upgradation of network towards digitization to qualify for this 74% FDI limit. vOtherwise they fall under 49% FDI clause.
• Reliance Industries invested in TV18 in Jan 2012.

MSO Siti Cables :

• Earlier known as Wire and Wireless India Ltd
• Result of 3 way demerger from Zee Telefilms in 2006. The other two being : Zee News and Dish TV.
• Multi System Operator in Cable distribution.
• Stock gained 291.61% from Apr 2012 to 22^nd Jan 2013.

DEN Network:

• Another MSO with pan india presence.
• Stock surged to Rs.224.80 from Rs.35.25 on 19^th Aug 2011.
• IPO Price of Rs.195 in Nov 2009.

Zee :

• Gained 89% in current year.
• Debt Free status.
• Fresh buyback at price not exceeding Rs.140 per equity share
• Diversified portfolio of channels.

Sun TV:

• Steady growth in DTH business Sun Direct.
• Rise in subscription revenue and pay channel revenues.

PVR :

• India’s largest multiplex operator.
• 351 screens at 85 locations with 84000 seats.
• Gained 89% in current year.
• Acquired Cinemax for Rs.395 Crores in early Jan 2013.

Underperformers : Sahara One Media, Reliance Broadcast Network, Entertainment Network, DQ Network etc.

Max India:

• Turnaround Story : Patience pays
• Promoted by Analjith Singh (Ex-Ranbaxy Group’s kin) company
• Earlier known as Max Newyork Life Insurance Company.
• JV partner Newyork life exited in FY 2012.
• New partner: Mitsui Sumitomo Insurance : Japan : Acquired 26% stake in Apr 2012 for Rs.2731 Cr, Valuing Max Life at Rs.10504 Crores. This is 2^nd largest foreign investment in Indian Life Insurance Sector.
• Max India’s 70% stake in Max Life is worth Rs.7352 Crore.
• But Max India’s market cap is around Rs.6500 Crores @ CMP of Rs.245 Crores.
• Apart from that, the embedded value of Max Life  is Rs.3684 crores.
• Other business like Health Ins, Health care, Clinical research. These valuations are like bonus.
• Max Pupa Health Insurance : JV between Max India and UK Bupa Finance Plc of UK.
• Health Insurance has 3.55 Lakh Customers with 1026 emplyees and 7415 agents and 20 office and 1350 partners hospitals.
• Max Life has AUM of Rs.19184 Crores with over 3.5 million policies in force with Sum assured of Rs.158000 Crore. It has 40000 agents and 400 trainers.
• Restructured its business to focus on Life Insurance
• Sold off Speciality film division to Treofan, Germany in Sept 2012 for Rs.540 Crores.
• Speciality film’s leading product was Biaxially Oriented Polypropylene films. This was the oldest business of Max India with manufacturing capacity of Rs.50000 tonnes per annum of BOPP.
• Debt reduced from 0.49 in FY 2011 to 0.29 in FY 2012.
• Max Neeman Medical internationsl : into clinical research.
• Reporting profit consistently for last 8 quarters.
• 1^st dividend in last 10 years : 500% (Rs.10 dividend against face value of Rs.2).
• Institutional Invesors : Fidelity, DSP Black rock, Natwest, Temasek and Morgan Stanley.
• Max India is a risky stock. Company still needs to pump in funds.
• Increase in FDI from 26% to 49% could be short term trigger.

Bharati Shipyard:

• 39 years in business
• 70% customers in Europe.
• Crisis in Europe : affecting lending to customers of Bharti Shipyard.
• CLEAR VICTIM OF CIRCUMSTANCES THAT ARE BEYOND ITS CONTROL.
• Liquidity Crisis.
• Leveraged buyout of Great Offshore Ltd : 49.73% bought in Dec 2009. Acquisition was rather strategic compulsion since GOL is one of the largest client of the company.
• Defaulted in payment of Rs.678 crores
• Reported to Croporate Debt Restructuring (CDR) cell – approved proposal like Conversion of certain debt into compulsory Convertible Debenture, Concession in interest and additional loans.
• Total Debt of Rs.5860 Cr from 25 lenders.
• No doubt – Bharti Shipyard is in trouble. But Investors can monitor the stock on continual basis and enter it at the opportune time.

BOSCH:

• MNC – Germany Robert Bosch Gmbh holds 71.18% equity stake.
• Manufacturers Diesel and Gasoline Fuel Injection systems, Auto electrical, Packaging machines, electric power tools and security systems.
• Very low Debt Equity Ratio : 0.07 in CY 2011

Apollo Hospitals Enterprises:

• One among the largest hospital network in Asia
• Owns 36 Hospital with 5949 beds
• JV in 13 hospitals and 2038 beds
• Plans 15 New Hospitals with 3140 beds by FY 2015.
• Tier II and III cities penetrated through Reach brand of hospital.
• Apollo Pharmacy – countries first and largest branded pharmacy network – 1350 outlets across 20 states

Wheels India :

• TVS Group Company
• Leading manufacture of Automobile steel wheel for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipments.
• Caters to Original Equipment Manufacturers (OEMs) and after sales market ren niche segments.
• 2.4 times increase in turnover in last 7 years
• 1.3 times increase in profit in last 7 years
• Has technical and financial collaboration with Titan Europe
•  Capacity to manufacture 10 million wheels per year.
• 84.5% of Wheels revenue comes from domestic market and remaining from overseas market.
• Signed technical agreement with TOPY Industries – Japanese wheel manufacturer.
• Debt to equity ratio was 1.57 in FY 2012

BIOCON :

• Started in 1978
• Asia’s largest Biopharma research hub in Bangalore SEZ.
• Main products : Statins and Insulin
• Products for Diabetology, Cardiology, Imunotherapy, Oncotherapeutics and nephrology.
• Setting up biopharma manufacturing and R&D facility in Malaysia – to be commissioned in 2015.
• 2.6 times rise in turnover in last 7 years
• 2 times increase in profit in last 7 years
• FY 2012 turnover : 2086.5 Crores.
• Debt equity ratio of 0.10 for FY 2012
• 56.5% of revenue from Domestic market, 43.5% from exports
• Aims to become US$ 1 billion company by FY 2018
• Focusing on Small molecules, Biosimilars, Branded formulations, Novel molecules and research services.
• SYNGENE – subsidiary – contract research. – May be listed in future.
•  GE capital invested Rs.125 crores for 7.69% stake in Syngene – valuing the subsidiary company @ Rs.1625 Crores.

EID Parry :

• Largest sugar producer in South India
• One among top 5 sugar producer sin country
• 4.3 times growth in turnover in last 7 years
• 1.9 times growth in profit in last 7 years
• Debt equity ratio of 0.65
• Owns 62.60% of Coramandel International (mfr of fertilizers, speciality nutriend and crop protection, 2^nd largest phosphatic fertilizer producer)
• Crushes 34750 tonnes of cane per day
• Generates 146 MW of power
• Has 4 distilleries producing 230 kilo liters per day
• Produces Azadirachtin – Bio pesticide from neem extract – good demand in developed counties.