|Current Price (BSE)||Rs 32.90|
|Market capitalization (28 July, 2014)||Rs 127 Cr|
|Face Value||Rs 10|
|EPS (March 31, 2014)||Rs 3.52|
|Book value Per share (March 31, 2014)||22.45|
|Price to Book value||1.46 times|
|No of Shares||38,603,250|
|BSE 52 week High||Rs 33.35 (25 July, 2014)|
|BSE 52 week Low||Rs 7.95 (26 July, 2013)|
About the company:
|Promoters||Vikram Thapar group of the Thapar Family|
|Business||Aquaculture: Shrimp feed, farming &processing|
|Commencement of operations||1993|
|Unit location||Nellore (Andhra Pradesh)|
“The Waterbase Limited” commenced its feed mill in 1993 and has an annual capacity of 30,000 T.P.A. It is a ISO-9001 certified shrimp mill. The Company claims to have a feed distribution network of more than 100 distributors and dealers across coastal belt of India. The distribution network provides round the clock services and also assists farmers with latest developments and farming techniques, thus directly and indirectly engaged in spreading the product reach. As per company website, the feed mill is certified for Organic Feed Production by Naturland, Germany. The process plant has a capacity of 20 MT per day and the cold storage unit has a capacity of 400 MT.
Company has developed its ponds in Nellore for shrimp farming. Apart from farming, all the research & development related works to studying the shrimp growth in various conditions, are conducted at Nellore farms.
The company follows HACCP guidelines and is among the few Indian companies that have FDA approval for exports to USA. It exports shrimp in different forms to the quality–conscious markets of Japan, USA, and Europe. In addition, the company supplies value–added shrimp in different forms to many of its customers.
|Shrimp Feed||Tiger prawn feed,Scampi feed
|Processed Shrimp||Head onHead less tail on
Peeled Deveined Tail On
Individually Quick Frozen
Bread and Battered
Cooked – Full Range
This section of Thapar Family after family settlement, is led by Mr Vikram Thapar. The group is primarily engaged in Coal mining and trading, real estate and in Aquaculture and feed processing through “The Waterbase Limited”.
Mr Vikram thapar is a chartered accountant and member of FICCI. As per media reports, Mr Thapar himself is a keen aqua culturist and has deep interest in the field.
Promoters’ stake increase: Promoters recently increased their stake via rights issue in October 2013. Additional 12.9 million shares were issued, resulting in 52.47% promoters holding. None of promoters holding is pledged. All these factors indicate positive signal towards the stock.
|Shareholding (%)||Jun 2014||Sep 2013|
Indian seafood product exports during 2013-14 recorded major jump of 59% in value terms as compared to 2012-13. The exports were Rs.29,500 crores as against Rs.18,856 crores in 2012-13. Shrimp exports accounted for 65% of the total sea food exports in value terms, an increase of 100% as compared to previous year. In the year 2012-13 the shrimp exports were Rs.9,608 crores. In the current year the shrimp exports are Rs.19,175 crores. In volume terms the shrimp exports grew by 33% from 2.26 lac MT in 2012-13 to 3.02 MT in 2013-14. The major export market has been USA, Europe, Japan and South East Asia during 2013-14 for shrimp exports. (Source: Annual report of Avanti Feeds Limited)
Sea food is a segment which has been registering tremendous growth in domestic sector as well. Given the rising incomes, Urban migration and changing food habits, we see a lot of demand for sea food in non-coastal regions of the country. It is reasonable to assume Sea food processed with high standards, will continue to grow at a healthy rate.
Improving financial position
|Income from operations||22,768||15,663||10,347|
|Net Cash Accruals||1,537||882||810|
|Equity Share Capital||3,860||2,574||2,574|
|Total Shareholders’ funds||8,669||6,025||5,424|
|OPBDIT / Operating Income||10%||8%||10%|
|Return on capital employed||24%||13%||12%|
|Return on Shareholders’ funds||16%||10%||10%|
|OPBDIT/Interest & Finance Charges||8.1||5.1||5.7|
|Net Cash Accruals / Adjusted Debt||1.2||0.3||0.4|
- Sales have grown consistently over the last few years.
- Net profit margin is healthy at 6%.
- Debt position is at a comfortable Debt/Equity ratio of 0.1 times.
- Company has given healthy returns on both capital employed and shareholders’ funds.
- Current ratio at 2 times is within comfortable range.
- P/E ratio at 9.3x shows the Company is fairly valued at present.
|EPS (March 31, 2014)||Market Price ((28 July, 2014)||P/E (trailing EPS)|
|Book value per share (March 31, 2014)||Market Price ((28 July, 2014)||P/BV|
Not many companies were available for exact comparison. I have done a comparative analysis with “Avanti feeds Limited”, a company also engaged in aquaculture activities.
Figures taken are for FY 2013-14
|Particulars||Waterbase||Avanti Feeds (Consolidated)|
|Income from operations||22,768||113,160|
|Total Shareholders’ funds||8,669||17,958|
|OPBDIT / Operating Income||10%||10%|
|Return on Shareholders’ funds||16%||39%|
|Book value per share||22.45||198|
Avanti feeds limited has a better scale of operations as compared to Waterbase Limited. Also, Avanti is more diversified. Also, there is not much difference on a P/E comparison between 2 companies.
Summary Balance Sheet (in Rs Lakhs)
|Reserves & Surplus||4,808||3,451||2,851|
|Non Current liabilities||344||1,128||1,137|
|Long term borrowings||221||1,018||1,045|
|Long term provisions||122||109||92|
|Short term borrowings||1,040||1,811||851|
|Other current liabilities||981||829||560|
|Non Current Assets||1,732||1,951||2,240|
|Other Non current assets||268||386||630|
|Cash & Cash equivalents||2,490||1,668||1,236|
|Other current assets||1,867||1,576||1,202|
Summary Profit & Loss account (In Rs Lakhs)
|Income from operations||22,768||15,663||10,347|
|Profit from Ordinary activities||2,045||761||685|
** The stock analysis of Waterbase Limited including the financial analysis report linked above, is for informational purpose only. This analysis should not be taken as a buy/sell recommendation. The circumstances of the company and the economic environment may have changed since the date of this stock analysis. For an updated list of the best Multibagger stocks, visit here – Multibagger Ideas.