Manaksia Industries Ltd

1

Initiative of the BSE Investors’ Protection Fund

Stock Details

BSE code 539043

BSE ID MANAKINDLTD

Face value (₹ ) 1

No of shares (m) 66

52 week H/L 18.8/4.1

Market cap (₹ m) 328

30 days avg vol (No) 6,380

Free float (₹m) 121

Stock performance (%)

1M 3M 12M

Absolute -28.0% -11.8% NA

Rel. to Sensex 23.4% 4.5% NA

Shareholding Pattern* (%)

Promoters FIIs DIIs Others

62.9% 0.0% 0.0% 37.0%

*As of December 2015

Relative Chart

Source: Bloomberg

Company Overview

Manaksia Industries Ltd is engaged in the business of manufacturing

metal and packaging products. The Company produces aluminum rolled

products, galvanized and corrugated sheets for roofing, mosquito

repellent coils, metal containers, beverage caps, and tamper-proof

packaging.

Industry Overview The containers & packaging industry is one of the sectors which have

witnessed a very high growth in recent years. Currently Indian containers

& packaging industry is approximately valued at $24 billion and expected

to reach $32 billion by 2025.

Financial Performance

Manaksia Industries Ltd revenues from operations for FY’15 rose

67.9% to ₹1,513.8 million compared to ₹901.5 million in the

previous year.

The company has reported a net loss of ₹77.5 million in FY’15,

opposed to a net profit of ₹1.8 million in FY’14.

For the period ending Q2’16, Manaksia Industries reported

revenues of ₹249.9 million.

Table1: Key Financials

(Y/e March) FY 13 FY 14 FY 15 2Q FY15 2Q FY 16

Sales (₹ m) NA 901.5 1513.8 NA 249.9

YoY Growth (%) NM NM 67.9% NM NM

EBITDA (₹ m) NA 74.4 58.1 NA 30.1

EBITDA Margin NM 8.3% 3.8% NM 12.0%

PAT (₹ m) NA 1.8 (77.5) NA -3.8

EPS (₹) NA 0.03 (1.18) NA -0.1

YoY Growth (%) NM NM -4033.3% NM NM

Source: Company, Karvy Investment Advisory

22,000

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

0

2

4

6

8

10

12

14

16

18 Manaksia Industries Ltd Sensex

CMP: ₹4.99 January 28, 2016

Manaksia Industries Ltd

2

Initiative of the BSE Investors’ Protection Fund

Background and Business Description

Manaksia is a multi-division and multi-location conglomerate. It possesses 17 manufacturing plants in India and 4 in

abroad; two in Nigeria, one in Ghana and one in Georgia. The group was promoted by Sri Basant Kumar Agrawal and

Sri Suresh Kumar Agrawal. Manaksia is headquartered in Kolkata, India.

Manaksia Ltd. is one the business verticals of Manaksia, which is engaged in the business of manufacturing metal

and packaging products. The company specializes in the manufacture of packaging products (crowns, closures and

metal containers) and metal products.

Key Strengths

Diverse product offerings

Risks & Concerns

Volatility in raw materials prices

Board of Directors Table 2: Composition of Board

Name Relation with Company

Mr. Basant Kumar Agrawal Chairman Cum Managing Director

Mr. Aditya B Manaksia Executive Director

Mr. Amit Chakraborty Executive Director

Source: Company

Manaksia Industries Ltd

3

Initiative of the BSE Investors’ Protection Fund

Industry Overview The packaging industry is one of the highly fragmented industries in India. As reported by Packaging Industry

Association of India, there are a total of about 25,000 packaging business units in India and more than 85% of these

are small and medium scale enterprises. The sector is poised to witness a rapid growth due to increased packaging

usage in the fast growing economies.

Although small and medium enterprises comprise 85% in number, but in terms of volume bigger firms accounted

for almost 50% of the volume in the market.

Flexible packaging is slowly taking over the applications of rigid packaging due to a change of focus to sustainability

and convenience. Flexible packaging offers attractive properties like lightweight, ease of printing and transporting,

easy variation in packaging shapes and sizes and the capacity to hold large volumes.

Usage of packages is continuously increasing. For example, a lot of restaurants now use flexible bags and pouches to

parcel for home delivery. Every industry from food delivery to goods delivery is driving demand for packaging.

The revolutionary increase in demand is coming from online players, which are delivering all the goods and food etc in

well protected containers. Now customers can order fixed goods like bed, sofa as well as daily consumable goods from

web and to delivery these items companies need to use better containers and packaging materials.

Competition analysis

Company CMP (₹) Mcap (₹ m) Rev (₹m) OPM (%) EPS (₹) PE (x)

Manaksia Industries Ltd 5.0 327.7 1,513.8 3.8% -1.18 NM

Uflex Ltd 170.7 12,322.9 33,271.7 13.1% 19.66 8.7

Jumbo Bag Ltd 8.2 68.7 936.5 7.3% -1.7 NM Source: BSE

Manaksia Industries Ltd

4

Initiative of the BSE Investors’ Protection Fund

Financial Analysis

For the period ending 31 March, 2015, Manaksia Industries Ltd reported revenues of ₹1,513.8 million, representing

67.9% gain when compared to the revenues in FY’14. The company’s EBITDA stood at ₹58.1 million in FY’15 and its

EBITDA margin declined to 3.8% from being 8.3% in FY’14 due to increased expenses.

Year end March FY 13 FY 14 FY 15

Income statement (₹ million)

Revenue NA 901.5 1,513.8

% growth NM NM 67.9%

EBITDA NA 74.4 58.1

% EBITDA margin NM 8.3% 3.8%

Depreciation and amortisation NA 21.3 56.5

EBIT NA 53.1 1.6

Interest NA 46.5 100.6

PBT NA 6.6 (99.0)

Tax (credit) expense NA 4.8 (21.5)

Net profit NA 1.8 (77.5)

% growth net profit NM NM -4520.7%

Balance sheet (₹ million)

Shareholder fund NA 1,162.0 1,037.3

Long term liabilities NA 466.9 311.1

Current liabilities NA 874.1 706.7

Fixed assets NA 481.2 393.3

Current assets NA 1,690.5 1,330.4

Cash & cash equivalents NA 30.7 10.0

Cash flow statement

Cash flow operations NA -212.6 239.4

Cash flow from investing NA 12.4 10.8

Cash flow from financing NA 222.7 -270.9

Per share data

EPS (₹ ) NA 0.03 -1.18

CEPS (₹) NA NA -0.32

DPS (₹) - - -

BVPS (₹) NM 19.90 15.80

Financial Ratios %

ROE NM 0.2% -7.0%

ROCE NM 2.5% 0.1%

Debt/Equity NM 82.2% 75.8%

Interest coverage ratio NM 1.1 0.0

Current ratio NM 1.9 1.9

Cash ratio NM 0.04 0.01

Source: Company, Karvy Investment Advisory

Manaksia Industries Ltd

5

Initiative of the BSE Investors’ Protection Fund

Financial Snapshot

Source: Karvy Investment Advisory

0.0%

20.0%

40.0%

60.0%

80.0%

0.0

500.0

1,000.0

1,500.0

2,000.0

FY 14 FY 15

Revenue growth (%)

Revenue ( ₹ m) % growth

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0.0

20.0

40.0

60.0

80.0

FY 14 FY 15

EBITDA margin (%)

EBITDA ( ₹ m) % EBITDA margin

-6.0%

-4.0%

-2.0%

0.0%

2.0%

-100.0

-80.0

-60.0

-40.0

-20.0

0.0

20.0

FY 14 FY 15

Net Profit Margin (%)

Net Profit ( ₹ m) % net profit margin

-1.40

-1.20

-1.00

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.00

5.00

10.00

15.00

20.00

25.00

FY 14 FY 15

BVS & EPS

Book value per share (₹) EPS diluted ( ₹)

0.00

0.01

0.02

0.03

0.04

1.84

1.86

1.88

1.90

1.92

1.94

FY 14 FY 15

Liquidity ratios

Current ratio Cash ratio

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

FY 14 FY 15

Profitability ratios

ROE ROCE

Manaksia Industries Ltd

6

Initiative of the BSE Investors’ Protection Fund

DISCLAIMER

Karvy Investment Advisory Services Ltd (KIASL), an entity of the Karvy Group, has taken utmost care to ensure accuracy and

objectivity while writing this report based on publicly available information or from sources considered reliable. However, neither

the accuracy nor completeness of information contained in this report is guaranteed. Opinions expressed herein are our current

opinions as on the date of this report. Nothing in this report can be construed as either investment or any other advice or any

solicitation, whatsoever. The subscriber/user assumes the entire risk of any use made of this report or data herein. KIASL

specifically states that it or any of its entities or employees do not have any financial liabilities whatsoever to the subscribers /

users of this report. This report is for personal information of the authorized recipient in India only. This report or any part of it

should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or

copied for any purpose.

DISCLOSURE

Associates of KIASL might have received compensation from the subject company mentioned in the report during the period

preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from

the subject company in the past twelve months or for services rendered as stock broker, Registrar and Share Transfer Agent,

Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance

repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any

other capacity. KIASL encourages independence in research report preparation and strives to minimize conflict in preparation of

research report. Compensation of KIASL Research Analysts is not based on any specific merchant banking, investment banking or

brokerage service transactions. KIASL generally prohibits its analysts, persons reporting to analysts and their relatives from

maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. KIASL and/or its

subsidiaries and /or its group companies collectively or Research Analysts do not own 1% or more of the equity securities of the

Company mentioned in the report as of the last day of the month preceding the publication of the research report. KIASL or its

analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in

connection with preparation of the research report and have no financial interest in the subject company mentioned in this

report. Accordingly, neither KIASL nor Research Analysts have any material conflict of interest at the time of publication of this

report. It is confirmed that KIASL and Research Analysts primarily responsible for this report and whose name(s) is/ are

mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the

preceding twelve months.

PUBLISHED BY

KIASL is a part of the Karvy Group, a premier integrated financial services provider. We offer a wide array of investment advisory

services including Comprehensive Financial Planning, Wealth Review and Investment Strategy services, Equity Review and

Investment Strategy, Mutual Fund Review and Investment Strategy, Wealth Advice Package, and Wealth Planning for Retired

Individuals.

Head Office: 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad, 500034, Telangana, India. Tel: +91-40-23312454

|www.karvy.com|