Just finished some fundamental analysis of Nesco India (the Bombay Exhibition Center) company based on Annual Report for FY 12-13.
I have not repeated the numbers that you can find in the annual report.
BEC revenue had a healthy growth from Rs. 763 M last year to Rs. 905 M.
Since the exhibition space continued to be 450K sq ft, that means Revenue/sq ft increased from Rs. 141 to Rs. 168. This is a good sign of their pricing power.
Despite this being a lukewarm year for the realty market, realty revenue increased from Rs. 267 M to Rs. 278 M.
BEC+Realty margin stayed flat at 93%, which is anyway a great figure.
My estimate of their EBITDA is Rs. 1205 M relative to Rs. 1002 M last year.
Dividend, though it had a modest absolute growth, is still at 4% of PBT. I wish they offered more dividend, as they are a cash-rich company.
As those who have analyzed Nesco know, the company benefits from a 'float' due to it collecting money in advance from the exhibition clients.
During this FY, the float (Total liabilities minus Equity Shareholder funds), was at 812 M per my estimate, a decrease from last years Rs. 910 M.
Book value per share is now at Rs. 260.
In the last 12 months, the share price has grown by approx. 3% while Book value per share has grown by 26% (last year too it had grown by 27%). This indicates the business is still quite healthy and market valuation is slower to catch up with underlying growth. This is fine for long term investors.
Disclaimer: The author holds shares of this company. Please do your own research and analysis before buying any securities. The above is not meant as a recommendation for investment.
I have not repeated the numbers that you can find in the annual report.
BEC revenue had a healthy growth from Rs. 763 M last year to Rs. 905 M.
Since the exhibition space continued to be 450K sq ft, that means Revenue/sq ft increased from Rs. 141 to Rs. 168. This is a good sign of their pricing power.
Despite this being a lukewarm year for the realty market, realty revenue increased from Rs. 267 M to Rs. 278 M.
BEC+Realty margin stayed flat at 93%, which is anyway a great figure.
My estimate of their EBITDA is Rs. 1205 M relative to Rs. 1002 M last year.
Dividend, though it had a modest absolute growth, is still at 4% of PBT. I wish they offered more dividend, as they are a cash-rich company.
As those who have analyzed Nesco know, the company benefits from a 'float' due to it collecting money in advance from the exhibition clients.
During this FY, the float (Total liabilities minus Equity Shareholder funds), was at 812 M per my estimate, a decrease from last years Rs. 910 M.
Book value per share is now at Rs. 260.
In the last 12 months, the share price has grown by approx. 3% while Book value per share has grown by 26% (last year too it had grown by 27%). This indicates the business is still quite healthy and market valuation is slower to catch up with underlying growth. This is fine for long term investors.
Disclaimer: The author holds shares of this company. Please do your own research and analysis before buying any securities. The above is not meant as a recommendation for investment.
