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THE LIST
MAGAZINE | MAY 26, 2012
Elsewhere in Business Penny Pinching

N MAHALAKSHMI
MAGAZINE | APR 13, 2013
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The Power Of Supercomputing

Indias fastest supercomputer Param Yuva II
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ALSO IN THIS STORY
1. IRB Infra Developers

The company holds concessions on 11% of the Golden Quadrilateral network of highways, on which plies some of the densest traffic in the country. Admirably, IRBs careful selection of projects ensured that it could grow without overloading its books with debt. Now that is changing. If less competition helped the company bag lucrative projects, the changed competitive scenario threatens to alter its profitability in future. Most players are bidding aggressively leaving very little money on the table. Going ahead, IRB needs to bid selectively to maintain its return ratios. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 3,043.59 504.87 56.07 76.14 9.97 2,470.54 464.09 4,625.53 1,199.96 7,147.69 -1,198.07 1.90 171.60 5,703.37
The Big Picture

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Being one of the earliest entrants in road projects, IRB enjoys high returns on projects
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2. S Mobility
Low cost mobile handset makers have reaped the boom in the Indian market and this company is no exception. The only hitch is that the excitement might have reached its climax. That is why the management now plans to expand into Africa and other low cost countries aggressively. If things go as per plan, then its facility at Baddi, Himachal Pradesh could soon be complemented by a new manufacturing facility at Tamil Nadu. That said for reasons unexplained, the company has extended the last financial year by three months to June 2012. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price 2,229.60 26.67 60.30 62.05 33.61 943.06 78.13 0.00 112.12 680.25 72.71 0.00 66.40
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M-cap
1,580.89
3. Jubilant FoodWorks
Its currently the largest pizza chain in India with 411 stores across 93 cities. It commands 50% market share in the Indian pizza market and 65% in the home delivery segment. Predictably, the company has a roaring business as most of us are hooked to fast food, especially pizza. The company is aggressively expanding even in Tier 2 and 3 towns. Sales volumes are moderating, but the company has been able to sustain margins so far. Analysts predict that high food inflation at a time of a growth slowdown could dent margins going forward. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 978.88 101.75 44.42 85.10 32.36 765.24 72.00 0.00 8.88 191.69 4.02 0.00 1,183 7,698.39
It is now rolling out Dunkin Donuts, another popular American takeaway chain
4. Zydus Wellness
This Cadila Healthcare subsidiary sells niche consumer products that include Sugar Free, add-on beverage Actilife, margarine brand Nutralite, and skincare brand EverYuth. Currently, Sugar Free has a 86% market-share in the segment, and contributes nearly 40% of its turnover. Competition is rising in this segment from foreign players, but meanwhile, promoter Pankaj Patel is focusing on expanding the portfolio in the nutraceuticals space. With consolidated revenues of $1 billion, the next target for the Cadila group is to reach $3 billion by FY15. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 232.95 58.92 39.68 89.84 58.28 336.37 59.48 0.00 86.45 141.89 51.32 0.00 381.65 1,491.19
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5. Core Education & Technologies

The company was in the news for reportedly walking away from a deal to buy computer training firm Aptech. While the acquisition could have added heft to its already substantial presence in vocational training, it has in no way affected its expansion plans. While its new chain of 150 skill training institutes will entail an investment of Rs 225 crore, it is targeting revenue of Rs 600 crore in about five years from the venture. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 1,541.29 325.15 51.19 57.49 31.24 1,091.23 225.01 839.51 189.68 2,026.82 99.95 0.71 280.75 3,158.17
Its global presence has delivered robust growth and it now plans to do the same in India
6. J Kumar Infraprojects
You cannot miss the company if you have travelled on Mumbai roads. For this contractor, flyovers and roads bring in 70% of revenues. At the end of December 2011, this EPC (engineering, procurement and construction) company had an order book of Rs 2,500 crore. J Kumar is already involved in the civil works contract (26% of revenues), for the Navi Mumbai metro project and looking at similar projects in other cities. With roads becoming a highly competitive business, contractors are seeing margins crack. Like most others in the business, thats the big challenge for J Kumar Infraprojects too. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price 828.19 65.52 48.85 52.25 35.98 949.19 73.92 167.40 46.83 545.60 174.30 0.45 169.00
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M-cap
469.84
Along with Amar Mahal Flyover, it has constructed many road projects in Mumbai
7. Opto Circuits
In the past five years, the company has significantly grown its revenues and profits many times over through a slew of acquisitions. Recovery in hospital capex in the US (contributes over 60% of revenues) and rising insurance penetration will drive demand for its medical equipment business (contributes almost 80% of revenues). Ramp up at its new facilities and increasing presence in emerging markets is likely to keep growth rates at 15- 20% over the next 2-3 years. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 2,258.87 484.60 54.66 45.92 33.46 1,585.56 368.55 884.39 234.18 2,273.15 525.38 0.65 185.75 4,501.08
8. Torrent Power
It is probably the only company that has understood how the make the best of electricity laws: build your own customer base, set up your own power stations and using open access, connect the two. When companies were rushing to set up power stations, Torrent quietly entered the distribution business. It not only has large generating capacities but now a seasoned power distributor. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 7,522.16 1,155.55 39.06 74.33 12.09 6,525.66 1,055.65 4,021.99 954.98 8,827.87 -274.28 0.84 203.25 9,602.51
It has generating capacity of 1600 MW and distributes electricity to 3 million consumers
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9. Nitin Fire Protection

The company counts companies like Reliance Industries, Bharti Airtel, Maruti, and L&T among its clients. Fire safety provision has been made a mandatory licensing condition for new medical institutes, after the fire in AMRI Hospital in Kolkata. This is expected to usher in new business. In February this year, the company had an order book of Rs 175 crore, with orders in the domestic markets accounting for Rs 135 crore. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 546.85 74.39 40.26 49.40 28.65 440.41 58.01 145.58 11.98 377.71 89.16 0.63 50.75 1,119.30
It owns 11% in an oil exploration JV in Rajasthan with GAIL, GSPC, HPCL & BPCL
10. Eros International

Have you watched Vicky Donor? Housefull 2? This is the company that distributed both these films. Eros has a presence in both film production and distribution (which is highly risky because of low success rates and high cost of acquisition of films). Eros has de-risked its business model by habitually pre-selling distribution rights. Its other big business is its library of over 1,900 films, which lends it a steady income stream, as it can sign exclusive deals with television networks. It also spent $53 million to increase its stake in B4U to 100% from the 34% it held earlier. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales 982.71 153.45 34.32 62.60 31.02 706.97
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Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
118.21 198.63 150.77 874.25 149.97 0.30 185.70 1,704.33
It plans to capitalise on B4Us reach in over 100 countries via its two channels
11. Educomp Solutions

The multimedia education provider has a diversified presence across pre-school, K-12 online and vocational training. However, it faces debt issues and will need to raise money to pay off the $78 million FCCB due this July. Besides, revenues from its online, supplementary and global businesses have been growing consistently, segment-level breakeven is expected only in FY14. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 1,303.55 105.93 62.24 30.05 22.65 1,350.90 340.53 1,437.34 448.89 3,852.30 -337.92 0.67 193.75 1,863.08
12. TTK Prestige

It has a dominant presence in the pressure cooker and non-stick cookware categories where it commands a market share of around 40-44% with its brand Prestige. Though the company has a pan-India presence, the south is its biggest market and accounts for 67% of revenues. The company is doubling its pressure cooker manufacturing capacity to 9.6 million units and quadrupling its non-stick cookware capacity to 8 million units. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg 1,161.27 124.83 32.54 61.42 46.30
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Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
763.56 83.75 2.25 53.54 193.73 68.65 0.01 3,478.60 3,938.15
Increasing urbanisation and rising rural income are key growth triggers for the company
13. Coromandel International

The company manufactures a wide range of fertilisers and is the second largest phosphatic fertiliser player in India. To grow its non-subsidy business, Coromandel International picked up the 42% promoter stake in Sabero Organics which is into crop protection for Rs 283 crore. The management is confident of turning around the loss-making acquisition and could end up spending close to another Rs 150 crore for the open offer to public shareholders. For now, high inventory levels at the suppliers end could keep volume growth subdued during the first half of FY13. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 9,402.20 762.53 35.18 50.78 27.95 7,527.95 693.66 1,663.83 960.54 3,620.57 392.16 0.85 256.45 7,246.50
The company is rumoured to be in talks to acquire Vijay Mallyas MCF
14. Page Industries

Whats driving growth for this company is a fetish towards branded clothing. Pages strategy of pricing its products in the mid-to-premium range has helped it gain substantial market-share in quick time. Jockey commands over 21% of mens innerwear market and 12% of womens. It has a strong distribution network it sells through 20,000 retail outlets apart from 70 exclusive stores that have been set up with the chief objective of showcasing a premium image. Page is adding capacities from an installed capacity of 87 million units to 137 million units over the next couple of years. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR 705.50 97.25 38.43
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PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
41.69 43.70 503.11 58.55 115.02 2.58 238.80 111.91 0.93 3,119.80 3,479.79
It has become the licencee for swimwear brand Speedo and this will add to its revenue
15. Delta Corp

This company is the new favourite of punters both on and off the bourses. The entry of billionaire investors Rakesh Jhunjhunwala and Radhakishan Damani (who has since pared his stake) infused new life into a company previously known as Arrow Webtex. Not that the business model does not make sense in a nation with a proclivity towards the path of least resistance. With partners like Reliance Industries, Indias only listed casino gaming company will continue to be the cynosure of many eyes. The sales and profit growth so far has been on a low base and now the market awaits the high rollers to do their part. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 382.65 68.83 56.59 28.35 16.74 376.01 165.62 201.66 64.42 879.63 166.71 0.34 60.95 1,364.78
16. EClerx Services

The countrys only listed pure-play BPO service provider differentiates itself by being a niche player in the KPO space that caters to capital markets operations of global banks through data
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analytics, operations management and audit reconciliation. The company inks multi-year annuity contracts with its clients to ensure a more stable revenue stream. With KPO industry tipped to grow at around 24% in the next couple of years, it should be able to outperform the industry. Strong operating margins, superior return ratios and cash flows also works in the companys favour as do investors like Sequoia Capital. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 460.43 172.48 39.80 34.17 80.29 341.91 118.56 0.00 149.27 233.89 135.04 0.00 735.75 2,139.21
The company recently completed the acquisition of US-based Agilyst in an all cash deal
17. Godrej Consumer Products

Its 3x3 strategy of focusing on Asia, Latam and Africa within its three core categories has significantly transformed the company with six international acquisitions over the past two years. International sales in FY11 accounted for 34% of consolidated revenues against 19% in FY10, thanks to its strategy of acquiring strong local brands in its core businesses. However, given the saturation in the soaps segment a lot will depend on how the company effectively harnesses its international acquisitions. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 4,703.87 738.15 37.47 38.66 50.98 3,646.08 481.60 2,005.42 226.91 3,730.58 -1,510.38 1.16 539.75 18,367.56
18. Jindal Steel & Power

The Naveen Jindal flagship operates in the steel (3 mtpa capacity) and power (2,200 mw) segments. While a free cash flow of Rs 4,000 crore ensures minimal funding strain, the presence of captive 180 million tonne of domestic iron ore and around 2.56 billion tonne of
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domestic thermal coal ensures raw material availability. Though environmental issues had cast a cloud on its domestic expansion, the company has overcome the hurdles. However, its $2.1 billion Bolivian deal, entailing 1.7 mtpa steel plant, a 6-mtpa sponge iron and a 10-mtpa iron ore pellet plant, is hanging fire over non-availability of gas supply. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 16,935.04 3,787.61 36.46 40.21 24.42 13,111.60 3,804.01 13,976.59 480.21 28,320.34 6,283.93 0.99 502.70 46,994.10
It has plans for a Rs 2 lakh crore capex to hike steel and power capacity by FY16
19. Adani Ports

The Mundra port is being spoken of as a gateway to at least three continents Europe, US and Africa and the Middle East. The Adani group is banking on infrastructure like a deep draft and a large tract of land along the port to bring in more business. It is expected that that the total traffic that Indian ports will handle in 2020 will be up three-fold from 870 million tonne in FY11. The only uncertainty has been about obtaining security clearances, which is a cause for concern. That resolved, it should be business as usual at Indias largest multi-product special economic zone spread over 135 sq km. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 2,345.61 1,117.85 31.49 42.96 12.25 2,000.11 916.17 4,204.61 251.50 8,493.19 -738.00 1.00 127.45 25,533.26
20. Titan Industries

This company really stands out for building exceptionally strong consumer brands. Apart from watches, Titan has done remarkably well with its jewellery business which now contributes nearly 80% to the topline and much of its pre-tax margin of 10%. Although it still has tremendous growth potential, there are doubts in the near-term because of high gold prices and weak rupee. If gold prices crash, its turnover could shrink, but the fall will be off-set by stronger sales. Sales (FY12) 8,742.60
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Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
607.29 33.03 40.37 42.85 6,532.97 433.14 68.02 1,108.27 1,103.64 -204.65 0.07 232.95 20,680.98
While its stock has been a traditional darling, of late it has been on the slow track
21. Bombay Rayon Fashions

While having the worlds largest fabric processing capacity helps deliver scale, it is hardly insurance when demand in your main markets get affected. When you add input cost pressure, you dont get up with a pretty picture. Having debt that is equivalent to your market cap also does not help. The worlds largest producer of shirts has used debt to pull in growth but now interest expenses are eating into profitability. As a result net profit growth in FY12 has not kept pace with sales growth and that does not look like changing in FY13. Promoters though are shoring up their holding through market purchases. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 2,585.12 219.92 39.08 32.42 12.49 2,690.90 203.42 3,138.15 51.55 5,754.96 -525.99 1.24 254.70 3,428.26
22. Cox & Kings

A leading global tour operator, it will benefit from the growing travel and tourism market in India tipped to grow at more than 10% between 2010-20 on rising income levels and changing demographics. Its 2011 acquisition of UK-based tour operator Holidaybreak (HBR) gives it a significant presence in the European market as well. While higher debts levels as a result of the HBR acquisition and increased dependence on the slower growing European market remains a concern with investors, strong growth in the domestic market improved cash flows and increasing synergies with HBR should see the company post an earnings growth of around
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20% in the next two years. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 771.16 71.51 50.64 27.71 25.66 496.74 130.47 844.33 961.28 2,052.18 138.24 0.70 150.40 2,053.38
23. Lovable Lingerie

This is one of Indias hottest innerwear manufacturers with a strong bouquet of brands that caters to the premium segment. Womens innerwear market is tipped to expand from Rs 8,500 crore currently to Rs 30,000 crore in 2020 making it the fastest growing segment in the apparel industry. Apart from a growing market, its debt-free balance sheet also cuts a good figure. Lovables revenues and earnings are expected to grow at 24% and 28% for the next two years helped by the launch of new products, expansion of distribution network and entry into new markets. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 156.92 20.17 30.42 43.72 41.21 104.04 14.12 0.00 14.33 141.23 28.54 0.00 368.55 619.16
Investors and speculators salivated all over its stock during and after its IPO. Some still do
24. Engineers India

The PSU has two major revenue streams: consultancy & engineering and lumpsum turnkey (LSTK) projects. Though the company has grown well, the outlook for the future looks challenging. The downturn in the investment cycle has seen its order-book fall to a 15-quarter low of Rs 5,700 crore. Of the order-book, the share of high margin consultancy is just 41%, while the low margin LSTK has the major share of 59%. With an order flow in FY12 of Rs 700 crore, the company is now looking at international markets and is banking on the new fertiliser policy. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR 3,298.02 594.64 36.54
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PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
32.59 40.49 2,677.54 531.29 0.00 1,798.13 1,489.87 497.69 0.00 251.95 8,489.12
Due to consistent free cash generation, it cash and cash equivalents equal Rs 62 per share
25. BGR Energy Systems

It provides balance of plant services to power projects apart from manufacturing power equipment through a JV with Japans Hitachi. After registering a 38% decline in revenues last quarter, largely because of slower execution of construction projects, the company revised its revenue guidance for FY12 sharply down to Rs 3,400 crore from Rs 4,800 crore. Its order book stood at Rs 8,200 crore in December 2011, but after that the company bagged an order worth Rs 3,000 crore from NTPC for steam turbines-generators. Yet, the scrapping of orders worth Rs 12,000 crore by Rajasthan Vidyut Nigam where BGR had emerged the lowest bidder has been a dampener as the revised bidding could be more aggressive. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 3,072.12 208.45 31.30 38.56 29.66 4,749.82 323.04 1,337.33 1,044.88 2,341.21 984.15 1.40 328.90 2,373.39
Rising competition in the BTG (boiler-turbine-generator) segment is a cause for concern
26. Polyplex Corporation

The worlds fourth largest producer of thin polyester film did see encouraging volume growth last year and some of that spilled into Q1FY12. But given that bulk of its revenue comes from the overseas market, it too has to now deal with a demand slowdown as well as high crude prices. The one-time gain made by the company in FY11 due to a partial divestment in its Thailand subsidiary did play a role in the companys profit growth rocketing out of the charts. To sustain its growth, the management is increasing focus on value added products and ICICI Prudential Mutual Fund with a holding of close to 6% certainly seems to be among the
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believers. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 2,443.24 350.01 25.68 51.01 22.47 2,433.32 1,336.54 728.33 860.78 2,922.42 1,732.81 0.45 178.05 569.49
27. Gujarat State Petronet

This state government promoted entity has 1,573 km of gas pipeline in operation in the HaziraVadodara-Ahmedabad-Kalol-Himmatnagar-Mehsana-Rajkot-Morbi-Anjar-Jamnagar corridor, which transports over 35 million metric standard cubic metres per day (mmscmd) of gas. Last quarter, GSPLs profit decreased mainly on account of lower gas transmission, lower revenue from sale of electricity, although its was partly offset by higher gas transmission tariffs. While availability of gas puts a question mark of growth for the company, another key risk is capping of margins by PNGRB at 18% pre-tax ROCE, compared to the 27% earned by the company based on tariffs in Q3FY12. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 1,118.64 523.73 27.24 42.42 18.09 1,039.10 506.38 1,483.49 239.01 3,490.07 302.57 0.74 65.95 3,710.93
28. Prime Focus

The Mumbai-based visual entertainment services company offers visual effects (VFX), 3D and post-production services. Over the past three years, of the top 30 worldwide box office hits more than 85% were VFX extravaganzas. And with filmmakers increasingly opting for 3D and visual effects to ensure box office success, Prime Focus could get steady business given its track record. It already has some big movies to its credit like Tree of Life, X-Men, Harry Potter
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and the Deathly Hallows and the Transformers series. Though there are other players in the business, Prime has two proprietary technologies, View D and CLEAR, which gives it an edge over competitors. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 777.04 109.90 30.71 37.31 8.30 502.96 88.19 461.33 29.92 867.45 -27.39 1.32 48.40 720.52
29. Ind-Swift Laboratories

For this Chandigarh-based manufacturer of bulk drugs, exports constitute almost 40% of revenues with the domestic market making up the rest. The company plans to increase its products profile from 40 to 80 with a focus on products that are going off patent between FY12 and FY20. Almost $78 billion worth of drugs are going off patent between FY10 and FY14 and likely to result in a windfall for generic players like Ind-Swift. The company hopes to achieve a turnover of $500 million by 2015, driven by presence in the developed markets and increasing product approvals. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 1,305.41 90.78 30.29 37.85 13.76 1,035.06 89.46 819.19 54.10 1,397.30 62.12 1.70 89.65 354.66
It recently received USFDA approval for five APIs at its Derabassi plant in Punjab
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30 Geodesic
The company develops products for smart phones, tablets and computers. The first product it developed was an instant messenger called Mundu that could run across multiple platforms. Its product Mundu TV allows users to watch television on desktops or mobiles and is the only Indian application to be rated #1 in the Apple app store. They have also developed a device used for last mile authentication, validation and data processing in e-governance projects. New product development is expected to help Geodesic sustain its revenue and earnings growth. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 970.57 279.57 40.76 25.49 25.16 873.04 273.65 615.10 1,282.63 1,763.98 186.75 0.54 45.75 412.40
It not only owns Chandamama but also has a bookshelf on the app store
31. Gitanjali Gems

A leading player in the branded jewellery space, it recently restructured its business into three focused verticals: diamond and jewellery manufacturing; India-branded jewellery and retailing, and international-branded jewellery and retailing. Gitanjali, which owns eight of the top 10 jewellery brands such as Nakshatra, Gili, Asmi, Sangini, DDamas, has converted its bouquet of product brands into retail chains with a footprint of 1.7 million sq ft. It is also in the process of consolidating its international operations in 12 countries, under the holding company Aston Luxury in Hong Kong. The company is looking at expansion in tier 3 and tier 4 towns.
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Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
12,385.66 515.97 28.89 38.59 9.50 9,456.40 356.57 3,047.34 439.32 5,627.23 456.70 1.21 325.45 2,965.57
It is India's first jeweller to have a vending machine at Mumbai's Siddhi Vinayak temple
32. S Kumars Nationwide

It is a leading textiles and apparel company with brands such as Reid & Taylor, Belmonte, S Kumars, Carmichael House and Stephen Brothers. Besides, it also holds the menswear licence worldwide for leading global brand DKNY. Building on its stranglehold in the school uniform market, the company is now looking to rapidly expand its franchise/distribution network in India through exclusive brand outlets. While revenues have grown steadily, the proposed initial public offering of Reid & Taylor will be a key trigger given that management has run up a huge debt pile. However, given the current market environment, raising the targeted Rs 1,000 crore from institutional and retail investors is a challenge. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 6,185.40 418.45 37.91 27.64 15.57 5,180.55 392.49 3,414.44 109.63 6,602.49 1,335.32 1.25 31.30 930.87
It holds a 75% stake in Reid & Taylor while the rest belongs to a Singapore sovereign fund
33. Amara Raja Batteries

The second largest battery manufacturer in India benefits from a strong presence in the aftermarket segment as it helps the company overcome any sluggishness in demand from original equipment manufacturers (OEM) like a Maruti or Tata Motors. Replacement demand in automobiles, capacity expansion and booming demand from uninterrupted power supply (UPS) makers is likely to keep volume growth robust with revenues and profits growing over 20% in the next two years. A strong balance sheet with superior return ratios also works to its advantage. Sales (FY12) Net Profit (FY12) 2,260.99 209.03
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Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
30.21 34.75 29.73 1,759.18 148.10 95.05 40.21 740.97 251.78 0.15 294.60 2,516.07
The falling price of lead could be offset by the depreciation in the rupee
34. JBF Industries

The management seems unfazed by a shaky demand scenario and is pressing ahead with its plans to become an integrated polyester player. Apart from moving to yarn and film making from polyester chips, the company is also adding to its existing purified terephthalic acid (PTA) capacity. Due to oversupply, not only did capacity utilisation fall in Q3FY12 compared to the previous quarter, but also its ambitious expansion will add to its existing debt and could render the company vulnerable if demand does not pick up adequately. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 6,995.47 265.92 36.23 27.63 19.09 6,465.57 546.11 1,783.62 235.04 3,237.36 284.37 1.23 113.00 813.82
It will spend $600 million for its 1.12 metric tonne per annum PTA plant in Mangalore
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35. Petronet LNG

The countrys biggest liquefied natural gas (LNG) importer has its hands full as domestic output at Reliances gas fields falter. That is why besides its existing 10 million tonne import terminal at Dahej, it is adding another 10 million tonne capacity through terminals at Kochi in Kerala and at Gangavaram in Andhra Pradesh. While global LNG prices are on the rise, Petronet could well be allowed to pass on a cost increase to user industries like fertilisers, power and petrochemicals. That failing to happen, the company will end up as another subsidy channel and strain the balance sheet of its promoting companies that include Gail, ONGC and Gaz de France among others. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 21,503.84 1,083.23 31.13 28.16 22.57 13,197.29 619.62 3,216.14 154.02 5,896.29 23.29 1.20 138.45 10,383.75
36. Rajesh Exports

As its name suggests, the Bangalore-based company earns 95% of its revenue from overseas. It now wants to alter its revenue profile and is therefore eyeing 50% of revenues from its retail chain of Shubh Jewellers in the next three years. Currently concentrated in Karnataka with 75 stores, the company plans to open 400 stores across South India at an investment of over Rs 6,000 crore. The company hopes to corner a 20% share of the retail market by banking on its strategy of not passing on making charges to customers. But given that the company had failed to make any headway with its earlier retail chain called Oyzterbay, the shine will take sometime coming. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt 22,678.41 422.62 26.89 33.07 10.91 20,533.76 247.99 2,530.40
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Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap
7,815.25 4,127.17 -52.16 1.58 143.40 4,234.03
On revenues of more than Rs 20,000 crore in FY11, its net margin was less than 2%
37. Swaraj Engines

This state-owned unit changed hands when the Mahindra & Mahindra group bought it from Punjab Tractors. It is now expanding annual capacity to 75,000 engines at its Mohali plant. Traditionally a favorite with investors due to its high dividend payouts, most of its production is consumed in-house. Healthy internal accruals have meant zero debt and this will stand the company in good stead, if at all, there is a fall in the demand for new tractors. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 437.40 52.53 27.48 28.73 38.73 360.63 43.91 0.00 76.20 152.22 49.82 0.00 416.10 516.79
38. Tulip Telecom

The company offers everything on data connectivity from network integration and from data centres to security and application management. It has the third largest data centre in the world and the largest in Asia. In an emerging economy like India, the growing penetration of internet and telecom will drive demand for data connectivity and the data centre market ($671 million) in India is growing at an average of 36%. The company has an order book of Rs 600 crore spread over five years and timely equity infusion for its data centre and refinancing of its FCCB will influence performance going forward. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow 2,724.56 322.06 26.39 27.13 24.14 2,351.05 306.41 1,776.86 250.37 2,989.39 -43.16
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Debt-equity ratio Stock Price M-cap
1.47 93.00 1,348.50
It is looking to sell its 13% holding in Qualcomms India broadband wireless unit
39. Sun Pharma

The company has an impeccable track record driven by its strong domestic business which has grown by an average 21% between FY07 and FY11 and contributes over 40% to total revenues. It also has one of the strongest generics pipeline of about 150 products pending approval. Majority control over Taro, strong cash position (over Rs 2,000 crore currently on balance sheet), new product launches both in the US and domestic market is likely to keep growth momentum going. Patent infringement suit filed by Wyeth for $960 million does casts a shadow, but not a long one. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 7,567.27 2,757.92 25.91 26.84 25.55 5,721.43 1,907.37 425.58 2,193.64 10,756.05 1,117.91 0.04 602.35 62,378.28
40. Lupin
Strong presence in the domestic and Japanese market through two acquisitions and a significant market share in the branded US generics market, especially in the oral contraceptives segment, have put Lupin in a position of strength. It has one of the biggest Abbreviated New Drug Application (ANDA) pipeline among its peers. Strong growth in the Japanese and domestic market is likely to result in an average earnings growth of 24% in the next two years. Sales (FY12) Net Profit (FY12) Sales 5-Year CAGR PAT 5-Year CAGR ROCE 5-Year Avg Net Sales Net Profit Total Debt Cash Balance Total Assets Free Cash flow Debt-equity ratio Stock Price M-cap 6,768.72 968.43 25.06 26.12 26.43 5,832.02 879.39 1,162.41 420.12 4,495.00 772.95 0.35 551.80 24,653.03
It ranks 5th by prescription sales in the US, the worlds biggest pharmaceutical market Note: All financial numbers are in Rs crore and for FY11 except where indicated. CAGR growth & RoCE are in %, debt/equity ratio is X (times). Annualised numbers have been used to maintain uniformity, as not all March-ending companies had declared their FY12 results at the time of compilation. Companies marked with have recorded RoCE in excess of 15% every year for the past five years. Stock price in Rs per share and market cap in Rs crore as on April 30,
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2012 Source: Ace Equity
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Feature / Cover Stories

MAGAZINE | MAY 26, 2012

Elsewhere in Business Penny Pinching

The Power Of Supercomputing

1. IRB Infra Developers

The Big Picture

Clear And Present Danger

MOST VIEWED MOST COMMENTED

5. Core Education & Technologies

It has generating capacity of 1600 MW and distributes electricity to 3 million consumers

9. Nitin Fire Protection

10. Eros International

118.21 198.63 150.77 874.25 149.97 0.30 185.70 1,704.33

11. Educomp Solutions

12. TTK Prestige

763.56 83.75 2.25 53.54 193.73 68.65 0.01 3,478.60 3,938.15

13. Coromandel International

The company is rumoured to be in talks to acquire Vijay Mallyas MCF

14. Page Industries

15. Delta Corp

16. EClerx Services

17. Godrej Consumer Products

18. Jindal Steel & Power

19. Adani Ports

20. Titan Industries

21. Bombay Rayon Fashions

22. Cox & Kings

23. Lovable Lingerie

24. Engineers India

25. BGR Energy Systems

Rising competition in the BTG (boiler-turbine-generator) segment is a cause for concern

26. Polyplex Corporation

27. Gujarat State Petronet

28. Prime Focus

29. Ind-Swift Laboratories

31. Gitanjali Gems

32. S Kumars Nationwide

33. Amara Raja Batteries

34. JBF Industries

35. Petronet LNG

36. Rajesh Exports

7,815.25 4,127.17 -52.16 1.58 143.40 4,234.03

37. Swaraj Engines

38. Tulip Telecom

Debt-equity ratio Stock Price M-cap

1.47 93.00 1,348.50

39. Sun Pharma

2012 Source: Ace Equity

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Indias Fastest Growing Companies

Not All Is Well

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