FA Assignment: MRF and Apollo B/S for last 3 years and our action items

[Gurpreet Singh]

Guys

Here you go:

Below link contains the balance sheets for MRF and Apollo Tyres for 2010-11 and 2011-12:

https://dl.dropbox.com/u/50149867/pers/gmite/FA_Assignment.zip

Things to note:

1. When I had a look at the reports, these companies are too similar in their operations as well as balance sheets, with MRF doing better than the Apollo. Not sure, if our choice is good or bad, and will we be able to do a better analysis in this case, vis a vis another case, where company operations are lil different, and balance sheets are also vastly diff. We can all go through these balance sheets, and send responses if our choice of companies is good, or we look out for 1-2 more options.

Action Item@All: Pls send you responses by tomorrow or so, in case we are ok/not ok with these companies, only after looking at the reports.If there are not many negative responses, we should go ahead with MRF and Apollo. 

2. I have sent a mail to Hema Ma'am to send us the ppt used in the sessions, as that was crux on what we need to do with these reports.

3. Next tangible step after we are sure on our choice + on getting the ppt would be all those calculations done in xls in a comprehensible form, so that we we all meet and discuss, we can quickly match things, and make changes soon without spending much time with logistics. So, I'll appreciate if all of us use xls as standard document format for calculations. [If required we can use google docs and work together later]

Action Item@All: Lets target 18th EOD for getting our 10 internal reports with calculations and some observations.

4. We can check responses and tally things on 19th and can have a skype call on 20th[I prefer a meeting though] so that we discuss about each other reports and ask for clarifications. We can sit over these for 5 days, and improve on it every day, putting in more info. We may have to do some online collaboration via google docs...

5. Need to prepare a template of the ppt on what will be the structure, content, what angle we are doing analysis, how to distribute those 15 mins, and who all will present what all, etc. All these things should be in shape[in template] before 27th(when we meet)   

6. 27th is the day[SUNDAY Morning], when we should all meet distribute tasks, and finish off things, keeping a buffer for 4 working days for last minute adjustments.  .

You all agree?

My contact number's below. Pls keep in your signature, in case we want to reach out each other.

Heard about this good source for reference:

http://www.investopedia.com

Wikipedia is another good one to understand terms more.

Regards

Gurpreet

+91-8050018653

[Archana Mohan]

So should we quickly close on one of these companies?

 

Cutfast Abrasives

UPM

3M

Binny Mills

Sundaram Fastners

ITC Bhadrachalam

 

3M, ITC Bhadrachalam,

+91-8050018653

[manohar rao]

Hi All,

I feel we can still keep MRF and if needed then consider another company. 

I did some research and found that  Sundaram Fastners is flagship of a US based company.

ITC Bhadrachalam (paper industry) looks interesting.

Thoughts please. Let's close this today!!!!!

-Manohar

98451 30528

Sent from my iPad

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[Archana Mohan]

ITC Bhadrachalam is fine, but i couldn't find the annual report though.

 

Manohar- can you please share the report with all of us.

+91-8050018653

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[Deepak Shivamurthy]

Hi all,

I agree with Gurpreet and Archana on the MRF/Apollo. Picking companies that are fairly close in terms of business that they do may limit us to near similar observations or trends.

Archana, the 2 companies that you have short-listed looks interesting to me given that they appear to be light engineering and their products seem to give us a bit of variety.

In short, i am good with 3M and ITC Bhadrachalam.

Regards,

Deepak

Mobile:9945655770

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[manohar rao]

Hi All,

 I was looking at the annual report of ITC Bhadrachalam year 2001 and found that its now amalgamated with ItC limited hence we are not able to find the annual report

Details are as below

 http://itcportal.com/media-centre/press-releases-content.aspx?id=232&type=C&news=Amalgamation-ITC-Bhadrachalam-Paperboards-Limited-with-ITC

We need to look for some new company if needed in that case.

Sent from my iPad

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[Deepak Shivamurthy]

I agree, we need to look for some other.

BTW, i see this definition of light engineering that includes surgical instruments manufacturers too. Any thoughts?

http://business.gov.in/Industry_services/light_industry.php

-Deepak

[Archana Mohan]

I'm OK with it. Thanks Rahul.

 

Regards,

Archana

+919663405836

On 12 January 2013 18:30, Rahul Ravikanth <rahul.r...@gmail.com> wrote:

Hey PPL ...

I did some googling around and found some dope that can give us an insight into the light engineering industry. Here are the links ...

http://dipp.gov.in/English/Investor/content_industries/LIGHT%20ENGINEERING%20INDUSTRY.htm

http://business.gov.in/Industry_services/light_industry.php

Thanks Gurpreet for your itemized mail. Taking his observation forward that the companies we chose were too similar in operations, I have listed two companies with different operations ....

1. Electrical Industry - Crompton Greaves Ltd.

2. Bicycle Industry - TI India Ltd.

The Annual reports of the companies can be download here ...

1. http://www.cgglobal.com/frontend/finalnonproduct.aspx?cnl2=Nu/tTrrPlMI=

2. http://www.tiindia.com/areport

What do you'll think?

- Rahul

+919901222882

On Sat, Jan 12, 2013 at 11:04 AM, Archana Mohan <am3...@gmail.com> wrote:

Hi Gurpreet,

I agree that we should look at a company with slightly different operations, that's where put comparative analysis will be more effective.

How about a cement company?

+91-8050018653

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[Gurpreet Singh]

Bingo... I had almost finalized TI India... 2 hours back....

Crompton Greaves looks good too.... and we have loads of info available...

Lets lock them down, and start crunching numbers.....

Next milestone is 18th EOD, for the 1st set of analysis reports(xls + some notes).... 

Lets keep on communicating going in between, if we have comments/questions/clarifications..... I bet we will have many... :)

PS: Any one got that ppt(specially the analysis part) which was used in the sessions...

Regards

Gurpreet (G;p)

[Gurpreet Singh]

Comments Inline....

On Sat, Jan 12, 2013 at 7:20 PM, Rahul Ravikanth <rahul.r...@gmail.com> wrote:

Few questions .... :)

1. Are we doing a comparative study?

Yes 

2. What are we basing our recommendation and inference on? (Final Slide) 

Well, this is lil complex. I would ask everyone from the team on their angles, and then we some how try to put in most prominent angles. Some of the use cases I was thinking:

1. I'm a fund manager, and need to invest in light engineering manufacturing sector, and finalized these two companies. What do I get out of this analysis. (P/E ratio, share related things, ROI, long term/short term returns,  etc will come to picture)

2. I'm a bank, and have some credit to disperse, but mandate is only this sector. So what this analysis gives me? (Debt heavy, which company is more likely to pay me interest + principal, ROI, Leverage etc will come to picture. )

3. I'm a consulting firm, and helping some other firm to take over/buy out one of these companies. Whats a better choice we get from all these calculations, etc.

4. I'm management team of one of the companies, and presenting my performance to Board of directors or Investors/Owners, and comparing my company, that has done better with competitor. -> Only in this case having companies from exact same domain and operations will help.

+ Some other angles... pls do share if you think of any...

But if I see in totality, all of these are going to be important, and we should be covering all the angles in our final slide(s). I guess the grades on how much info we looked into, made sense out of that for multiple scenarios.

 

3. Will companies with different industry ops help here? (Electrical - Bicycle vis-a-vis Bicycle - Bicycle)

Same ans as above. I guess we should be ok with same sector, different ops. Feel free to share, if anyone thinks otherwise.