premco global

8/13/2019 Premco Global

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This is not a buy or sell recommendation. We are in the process of compiling datasheets of companies that we track / own so that in future we may use these for buying /selling stocks of such companies. Reason for sharing is hopefully somebody who hasmore information / insight may get in touch with us or for a healthy debate.

Premco Global

Date : 14-Feb-14Traded In : BSE B (530331)Face Value : 10CMP : 44.25EPS (TTM) : 25.25P/E : 1.75Market Cap : 14 CrEnterprise Value : 21.32 Cr52 Week H/L : 46.4 / 21.05Website : http://www.premcoglobal.com

Profile

Premco Global is a manufacturer of Woven and Knit Elastic and Non-Elastic NarrowFabric, Tape and Webbing for use in the Apparel, Lingerie, Sports-related, Medical,Footwear, Luggage, Furnishing and Automotive industries.

The company has 4 manufacturing units at

Palghar, Maharastra Dadra & Nagar Haveli, UT Mumbai, Maharastra Vapi, Gujarat

Clients


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Products

Elastic narrow fabrics are an important input to the undergarment industry. They are alsoused in other garments i.e. shorts, jackets and skirts, moulded luggage, baby diapers,sports goods, medical goods, etc.

Elastic narrow fabrics are made from an elastomeric yarn and yarns made from cotton,polyester and nylon. More than 3000 different varieties of elastic fabrics aremanufactured however, based on manufacturing technology they can be classified aswoven and knitted. The fabric is expected to have the following properties:-

Stretch ability Shrink resistance Durability to regular wash Soft feel

Knitted elastic tapes are generally available in widths 8 mm, 12 mm, 20 mm and 25 mm.Woven elastic tapes range in widths 25 mm, 32 mm and 38 mm. These elastic tapes areprimarily used for undergarments. The narrow fabric is made with or without logo alongthe length depending on customers requirement.

Premco Global product showcase


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Raw-materials

Elastic narrow fabrics are made from heat resistant latex thread generally referred to asRubber thread or heat resistance spandex yarn. This yarn is woven or knitted along withyarns of polyester, nylon or cotton. Polyester yarn of 150 deniers and nylon yarn of 210denier are used for the purpose.

Financial Highlights

( . C ) 12 13 11 12 10 11 09 10 08 09 07 08 06 07 05 06 04 05 03 04

52.85 33.77 42.31 28.06 30.11 24.29 22.95 20.70 21.21 18.30

53.49 34.14 45.10 28.85 30.71 24.76 23.29 20.68 20.10 18.44

9.38 3.14 3.89 2.95 3.57 2.9 2.61 2.2 2.29 2.22

0.95 1.01 0.91 0.37 0.58 0.45 0.8 0.53 0.67 0.81D 1.07 1.03 1.01 0.78 0.78 0.8 0.75 0.7 0.68 0.65

B 7.35 1.09 1.96 1.79 2.2 1.64 1.06 0.97 0.94 0.75

2.49 0.46 0.38 0.7 0.78 0.56 0.36 0.34 0.14 0.05

A 4.85 0.63 1.58 1.08 1.41 1.07 0.7 0.62 0.8 0.69

D 0.31 0.02 0.22 0.03 0.04 0.03 0.11 0.11 0.02 0.03

B 0.06 0.03 0.03 0.04

E 0.6

(+) / ( ) 5.16 0.61 1.35 1.05 1.39 0.46 0.78 0.69 0.82 0.73

E D % 0.18 0.12 0.12 0.12 0.12 0.12 0.08

D 0.56 0.35 0.35 0.35 0.35 0.34 0.23

C 3.16 3.01 3.01 3.01 3.01 2.97 2.97 2.97 2.97 2.97

& 17.73 12.96 12.77 11.82 11.19 10.06 10.07 11.79 11.09 10.10

D 1.98 2.29 2.26 2.04 2 2.05 2.09

22.88 18.28 18.05 16.88 16.21 15.09 15.14 14.76 14.06 13.07

A 23.06 21.84 22.21 18.13 16.92 16.36 16.92 15.28 14.58 13.81

A 13.22 12.90 13.65 10.43 99.4 10.11 10.31 9.32 9.32 9.21

E. . . . 16.79 2.01 4.46 3.47 4.61 1.54 2.57 2.3 2.72 2.4B . 71.82 60.21 59.46 75.88 53.4 49.73 50.29 48.63 46.33 43.08

D : E 0.26:1 0.28:1 0.30:1 0.20:1 0.08:1 0.10:1 0.16:1 0.20:1 1.01:1 0.59:1

1292 1,266 1,302 1,316 1,395 1,395 1,487 1,606 1,872 1,853

E 169 168 181 134 131 138 129 131 143 124


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P&L


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Balance Sheet


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Cash Flow

The high receivables Rs 10.52 Cr for 2013 could be the reason for the low net cash from

operating activities.

A20122013

20112012

20102011

20092010

20082009

20072008

20062007

D D 72.6 53.4 40 60 54 62 66

1 2013 2014 1 2012 2013D D 41 108.4

It seems that the company has worked on its receivables this year. Having said the netcash from operating activities must be looked clearly in this years result.

Quarterly Results


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Key Ratios


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Exports

( ) C D E E %

2012 13 28.31 25.16 47.05

2011 12 17.89 16.22 47.55

2010 11 28.82 14.44 33.38

2009 10 20.96 7.08 25.25

2008 09 23.4 6.7 22.26

2007 08 18.46 5.82 23.97

Capacity Expansion

C ( C )20122013

20112012

20102011

20092010

20082009

20072008

20062007

& 1.28 0.45 3.53 1.18 0.31 1.07 1.69

& 0.27 1.04 0.14 0.1 0 2.06 0.14


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Management compensation

, B 2012

132011

122010

112009

102008

092007

08 35.36 28.9 29.23 30.37 20.93 11.82

20.87 14.55 11.62 6.5 4.2 1.2

Dividends

D A ( )

08 A 13 1.8

27 12 1.2

09 A 11 1.2

15 10 1.2

04 09 1.2

11 08 1.2

31 A 07 0.8

Shareholding Pattern

D 13 D 12 D 11 61.53% 59.63% 59.63%

> 1% 11.25% 16.71% 16.32%

< 1% 27.22% 23.66% 24.05%

31,86,300 30,36,300 30,36,300

Dec 2013 - Issue of 1,50,000 equity shares on preferential basis to the promoters

Dec 2012 - Issue of 1,50,000 equity shares on preferential basis to Suresh B Harajni,one of the promoters of the company at a price of Rs 28 per share aggregating to Rs 42lakh


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Realization cost table

E 20122013

20112012

20102011

20092010

20082009

20072008

20062007

/ 6.42 6.49 5.36 4.85 4.63 4.58 4.17

% 1.08 21.08 10.52 4.75 1.09 9.83

20122013

20112012

20102011

20092010

20082009

20072008

20062007

/ 143 128.6 140.17 111.93 103.23 107.8 109

% 11.20 8.25 25.23 8.43 4.24 1.10

20122013

20112012

20102011

20092010

20082009

20072008

20062007

/ 256.06 250.23 258.53 212.87 196.85 262 293.6

% 2.33 3.21 21.45 8.14 24.87 10.76

20122013

20112012

20102011

20092010

20082009

20072008

20062007

/ 183.5 179.76 206.28 149.22 201.94 203 209.4% 2.08 12.86 38.24 26.11 0.52 3.06

% 20122013

20112012

20102011

20092010

20082009

20072008

20062007

48.5 45.7 38.9 44.2 47.7 39.9 40.3

21.8 21.9 20.3 27.1 15.7 30.4 29.8

26 27.6 23.5 22.4 21.7 22.8 25.7

3.6 4.8 17.2 6.3 14.8 6.9 4.2

Premco seem to have pricing power for its product irrespective of the raw materialpricing. Last year the per metre realization price took a hit. Since the sales had a major

jump compared to last year, maybe they had to take a compromise on the pricing.


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Investor Returns

Period Date Price (Rs) Returns (%)

1Week 07-Feb-14 39 13.46

1Month 14-Jan-14 38.95 13.61

3Month 14-Nov-13 36.9 19.92

6Month 16-Aug-13 24.4 81.35

1Year 15-Feb-13 34.5 28.26

2Year 14-Feb-12 19.95 121.8

3Year 14-Feb-11 22.45 97.1

5Year 03-Mar-09 10.27 330.87

Src: :// . . /

SWOT Analysis

Strengths

Premcos financial record and ratios for the last 2 years are stellar The products seem to have pricing power Company paying dividends for the past seven years

Weakness

Very small market cap [Mkt perception] Low volumes of share traded

Opportunities

Very small market cap With the inner wear market moving towards branded goods, the sales of Premco

will be in a better position Export market potential

Threats

Receivables aging


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Synopsis

The company seems to have a stellar growth path. The markets seem to have noticed it.If the company can produce similar results, the stock would get re rated.

References

1. www.bseindia.com 2. www.premcoglobal.com 3. www.moneycontrol.com

4. www.screener.in

Disclaimer

General: This report is not a buy / sell recommendation. Buying stocks must be doneafter careful analysis and the above report can be used as a base for the analysis andshould not be used as sole basis.

Vested Interest : The author has bought the above mentioned stock at an average priceof ` 33. He may purchase / sell the same in the future in the short or long term based onhis conviction and his financial situation.

Data Validity : The data is collated from various sites in the internet. Even though wehave tried our best, there may be discrepancy due to human error while collating thedata. The author should not be held responsible for such mistakes. The data can belooked up at various websites given in the reference section.

Valuation : The author is not an expert and his valuation may be off the mark.

premco global

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