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 20 20 MEET
BOMBAY DYEING @ Rs 242
A Case Study ~ Value Vs Price
TAJ Santacruz, Mumbai
Saturday, July 28, 2018 ~ 9:00 am – 5:30 pm

GAURAV A PARIKH
Managing Director

JEENA SCRIPTECH ALPHA ADVISORS PVT LTD

 Disclaimer

•As on date neither my Company nor me are

registered with SEBI as an Investor Advisor or
Research Analyst
•We are involved in Fundamental Training &
Mentoring in Equity Markets
•This is not a Stock Recommendation & is an
illustration for Valuation of a Company
•Please do due diligence before making any
Investment Decision or consult a Registered
Investment Advisor

3 Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018

4 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018
 TOP 5 SERIOUS CONSIDERATIONS FOR SERIOUS
WEALTH CREATION IN INDIAN EQUITY
Magic & Miracle of Compounding ~Significant
Amount to begin with & significant periodic
additions to ~ Rs 1000 pm SIP at 15% CAGR for
25 Years =Rs 33 lakhs while Rs 10000 will make it
Rs 3.3 crs
Strong Conviction & Concentration in Great
Fundamental Selections ~ VALUATION & THE
LUCK & SKILL OF PICKING WINNERS
Think Long Term ~ 10 years & more
Temperament to withstand Drawdowns & on the
flip side not pull out Early
Discipline of Asset Allocation & Risk Profile

5 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 Thought Process & Testing Mindset

Promoters & Management Pedigree

& Integrity
Business Model ~ Intention backed by
Ability
Financials ~ Past, Present & Projected
Valuation
Value Vs Share Price Assessment

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Perception & Interpretation
 Market Cap to GDP Valuation

2018-19
2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

18722302
In Rs Crs 11345056 12653762 13567192 15065010 16847455 16847455 18722302

BSE Market 12705832 13259179 14685601 15144543

9833359 9833359 10591421
Capitalisation in 7415296 (June (Aug (Feb (July
(October (October (December
Rs Crs 16,2017) 4,2017) 16,2018) 27,2018
30,2015) 30,2015) 2,2016)

Mkt
0.65 0.78 0.70 0.70 0.75 0.79 0.78 0.81
Cap/GDP
 Mkt Cap/GDP

9 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 A few Pointers at the outset….

10 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 Because These are Mistakes you might Make

Shorting when the uptrend Momentum is strong

Booking Profits Prematurely
Information Overload 24*7 real time glued & clued
in to WA Trading Groups,Forums & Stock Channels
Switching from Quality
Thinking 2 min Maggi Noodles or 2 days or 2 months
instead of 2 years & more
Understating Risks for lure of Instant Gratification
Mistaking Luck for Skills
Encashing Winners & Keeping Losers
Confirmation Bias
Overoptimism & Overconfidence
Gamblers Fallacy
11 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018
 Respect Youth & Experience

12 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 Think Long Term…there are exceptions ! 

13 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 Don’t be in a tearing Hurry !

14 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 Bad Judgements ~ Learn from them

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 Respect Tradition…They are Your Roots

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 Don’t get distracted by Noise

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Always Believe in Yourself !

Believe in Yourself
Pray !

At the End of the Day….Pray !

 Avoid Rearview Mirror Influence…develop
Independent Thinking…avoid herd mentality…don’t
jump on when you don’t even know where the bus
is headed ! Mentality…Develop Independent Thinking…
Avoid Herd
 You’re jumping on because others are… do you know
where the Bus is Going !?
Expect the Unexpected
Expect the Unexpected !
 Be Flexible & Adapt

Be Flexible and Adapt to Changing Situations

Resist Temptation to go on the Wrong Track

Resist Easy Temptation to go on the Wrong Track

Trust….but only those who deserve it
Trust…but only Those that have Earned and
Deserve it
Take Risk after Understanding it

Take an Occasional Risk after Understanding it

PRICE, FINANCIALS & VALUATIONS

Bombay Dyeing
 Bombay Dyeing
Retail Textile/Real Estate/PSF

FV : Rs 2 CMP: Rs 242
52 Week H/L: Rs 322/66 July 27,2018
Market Cap: Rs 4995 crs

Consolidated Financials & Valuations of FY18

(Amt in Rs Crs unless specified)

Equity Net Total EPS BV Promoter’s

Income PAT P/E P/BV
Cap Worth Debt (Rs) (Rs) Stake (%)

2230 L

41.31 637 415 S 2744 35 1.6 31 151 7.8 53.69

 BOMBAY DYEING ~ SHARE PRICE TREND
2016 TO DATE JULY 27,2018

28 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018

 10 Years At a Glance

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As on March 31, 2018
 Exceptional Item in FY 18 P & L

The profit for the current year

would have been even higher but
for an exceptional provision of `
153.25 crore made in regard to
the perceived doubtful recovery
of advance made to the
Company’s Joint Venture, P.T. Five
Star Textile Indonesia,

31 Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018

32 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018
 REAL ESTATE

BOMBAY REALTY

The revenues in FY 18 were up 130% to Rs 1183

crs from Rs 515 crs in FY 17 with Segment Profit
at Rs 586 crs . Real Estate is poised to become
the single largest revenue earning Division of the
Company on topline basis and will be a
substantial contributor to the bottom line
growth of the Company.
The Division is well poised to monetise its assets
both in ICC and WIC and with the DCR 2034
enhancing the land potential for development; it
is looking at forging additional projects in the
34 coming year Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018
 RETAIL & TEXTILE
Revenue nearly halved from Rs 578 crs in FY15 to Rs
258 crs in FY18 & a segment loss resulted
Aloke Banerjee, CEO “ We aim to be on MRP
value terms at Rs 1,000 crore by 2020. Our
revenues are 40-50 percent less than that. So
we will be at around 500 crores by 2020..”
In August 2018, the company will launch readymade shirts for men which will
be launched firstly with the Bombay Dyeing exclusive outlets and then with
Multi Brand Outlets (MBOs) across the country. The readymade brand will be
called Cezari and will be priced between Rs 499 and Rs 999.
The company is also planning to launch a unique concept called ‘make your
own bed sheet’, which will be priced at Rs 1,999.
The company intends to add another 100 franchisee stores in Tier II and Tier III
towns. At present, the company has 27 COCO (company owned, company
operated) stores, 400 franchise stores and is available in 3,000 multi-brand
retail stores and 920 modern trade doors, besides all the major e-commerce
platforms.

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 Polyester
The Division achieved a turnover of Rs 1,252 crs in FY 18 marginally up
from 1,214 crs in FY 17 & registered a small segment profit.In volume
terms, there was an increase of slightly over 3 %. The raw material and
PSF prices remained volatile during the year tracking the movement in
petrochemicals and crude oil prices. The average capacity utilization
was 93%, significantly better than the industry average capacity
utilization of below 80%. The sluggish market sentiment in the domestic
polyester staple fibre industry was reflected in an overall growth of 3%
compared to the previous year. New capacities of around 12% of
existing capacity, became fully operational during the year far exceeding
the growth in domestic demand resulting in underutilization of
domestic capacity. Increased volatility in raw material prices, surplus
production capacities and imports at significantly lower prices has
posed challenges which company will seek to counteract with
innovative product mix and cost reduction initiatives.

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37 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018
 Investments
Bombay Dyeing with a Market Cap
of Rs 5000 crs at Rs 242 owns
10.80% & 7538600 Shares of
Group Company Bombay Burmah
Trading Corp Ltd with a Market
Cap of Rs 10642 crs at Rs 1525
which in turn owns 50.70% of
Group Company Britannia with a
Market Cap of nearly Rs 77000 crs
at Rs 6384
39 Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018
 Unbilled Revenue

Current Assets shows Other Financial

Assets of Rs 1512 crs at March
31,2018..These are Unbilled Revenues
not yet due & where Projects are
expected to be completed in FY 19

40 Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018

 Debt

In FY 18 there has been restructuring &

consolidation of Debt & all Bank Long
Term Loans were paid off & fresh Loans
taken from NBFCs like Dewan Housing
Finance.Short Term Borrowings of Rs
415 crs includes an unsecured Inter
Corporate Deposit from Britannia for Rs
350 crs

41 Jeena Scriptech Alpha Advisors Pvt Ltd 28 July 2018

Contact in Mumbai

Jeena Scriptech Alpha Advisors Pvt Ltd

Tel: +91 22 42304117/40

Email: care@jsalphaa.com

Website: www.jsalphaa.com
 Thank You

GAURAV A PARIKH
www.jsalphaa.com

www.gauravblog.com

gaurav@jsalphaa.com

+91 9820162597

43 Jeena Scriptech Alpha Advisors Pvt Ltd 27 July 2018