18 April 2011

Update | Sector: Real Estate

Anant Raj Industries

BSE SENSEX S&P CNX
19,091 5,729 Rs92 Buy
Shift in focus: Newly acquired projects to mitigate concern over
monetization delay
Golf Course Road project to be a key growth driver

Bloomberg ARCP IN With a sharpened focus on launches of recently acquired projects, Anant Raj Industries
Equity Shares (m) 294.6 (ARIL) is well placed to offset its recent under-performance. Concerns over delays in
52-Week Range (Rs) 160/66 monetization of its super-luxury projects are likely to be mitigated by ARIL's strong
1,6,12 Rel. Perf. (%) 12/-31/-41 cash flow visibility from recently acquired projects. The Golf Course Road project,
M.Cap. (Rs b) 27.1
acquired in FY11 is expected to contribute 30-50% of sales over FY12-14, and will be the
M.Cap. (US$ b) 0.6
key medium term value driver. While ARIL's net debt jumped sharply in FY11 to Rs8.8b,
visibility of robust operating cash flow and steady growth in annuity income provides
Y/E March 2011E 2012E 2013E
necessary comfort to address the liquidity risk. We expect ARIL's RoE to improve from
Net Sales (Rs b) 4.5 6.9 11.1
EBITDA (Rs b) 2.5 3.5 6.5 4.9% in FY11 to 6.2% in FY12 and 10.7% in FY13. The stock trades at 0.7x FY12E BV of Rs134.
NP (Rs b) 1.8 2.4 4.4 We believe ARIL's ongoing projects and land bank (at cost) offer a healthy cushion to its
EPS (Rs) 6.1 8.1 15.0 current valuations and incremental cash flow visibility from new projects could be a
EPS Gr. (%) -24.5 32.7 85.7 strong trigger. We reiterate Buy.
BV/Share (Rs) 127.0 133.8 148.1
P/E (x) 15.1 11.4 6.1 Value accretive land acquisition offers strong growth potential: Over the past
P/BV (x) 0.7 0.7 0.6 12-18 months ARIL deployed ~Rs8.5b to acquire ~200 acres of land (saleable area
EV/EBITDA (x) 13.4 9.6 4.5
~10msf) in the NCR and we expect the monetization to start over the next 3-6 months.
EV/ Sales (x) 7.4 4.9 2.6
We believe these land parcels render strong value accretive potential due to their (a)
RoE (%) 4.9 6.2 10.7
RoCE (%) 6.1 7.5 12.9 attractive acquisition cost, (b) superior locations and (c) suitability for large format
development in the mid/high-end segment. Its recently acquired Golf Course Road
project is likely to be a key growth driver and will account for ~24% of its GAV and
about half its sales value over FY12-14.
Shareholding pattern % (Mar-11)
Others, Lack of clarity persists on luxury projects, new projects overshadow concerns:
11.0
ARIL's super luxury projects in Hauz Khas and Bhagwandas continue to face
headwinds. However, we expect monetization of recently acquired projects to mitigate
Foreign, concerns over delays in old projects. With the focus shifting from luxury-end old
24.4 projects to mid to high-end new projects and an improving market outlook in NCR, we
believe on-time incubation of projects at Golf Course Road, Gurgaon Sector 91,
Neemrana and Rai will offset recent underperformance.
Domestic
Leverage comfortable despite surge in net debt: During its land acquisition phase,
Inst, 2.9 Promoter
ARIL's net debt increased to Rs8.8b (v/s net cash of ~Rs3.5b in FY10), implying net
61.7
DER(x) of 0.24x. Still, we believe ARIL is unlikely to face liquidity pressure due to (a)
Stock performance (1 year) an easy repayment period, (b) strong cash flow visibility from recently acquired readily
saleable projects and (c) steady support from annuity income, which we expect to
Anant Raj Inds
Sensex - Rebased grow to Rs1.6b by FY12 (v/s ~Rs800m in FY11).
170

140 Valuation offers an attractive entry point: We estimate ARIL's one-year forward
NAV at Rs167. The stock trades at 11.4x FY12E EPS of Rs8.1, 6.1x FY13E EPS of
110
Rs15 and ~45% discount to its NAV. Its ongoing operation and fully paid land bank
80
render strong support to current valuations. At 0.7x FY12E BV of Rs134, ARIL offers
50
an attractive entry point, as we expect its RoE to improve meaningfully from 4.9% in
Apr-10 Aug-10 Dec-10 Apr-11
FY11 to 6.2% in FY12 and 10.7% in FY13 going forward, through faster monetization.
We reiterate Buy with a target price of Rs140.

Sandipan Pal (Sandipan.Pal@MotilalOswal.com); Tel: +9122 3982 5436

 Anant Raj Industries

Value accretive land acquisition offers strong growth potential

Over the past 12-18 months ARIL acquired land worth ~Rs8.5b in the NCR and has
projects at attractive locations in Gurgaon such as Golf Course Extension Road (Sector
63A) and New Gurgaon (Sector 91). ARIL acquired the land at rates ranging from ~Rs100/
sf (for EWS housing in Rajasthan) to ~Rs1,000/sf (Golf Course Road), suitable for its
focus on mid to high-end products.

Recent acquisitions have ARIL has most of the requisite approvals and is well placed to monetize over the next 3-
been at attractive rates and 6 months. It soft launched its mid-income project in Gurgaon, Sector 91 (1.5msf), with a
render a strong launch base price of Rs3,800/sf and sold 80 units in 4QFY11. It plans to launch its affordable
pipeline in mid and high-end housing project Neemrana (Rajasthan) in 1QFY12 and its key township project in Golf
segments Course Road awaits master-plan approval and is due to be launched in 1HFY12.
Key recent land acquisitions
Project Area Purchase Effective Expected
price (Rs b) cost (Rs/sf) launch date
Gurgaon Sector 91 16 acres/1.5msf 0.85 566 Soft launch
Golf Course Road 167 acres/6.6msf 6.76 1,024 1HFY12
(Sector 63A)
Neemrana, Rajasthan 18 acres/ 2msf 0.15 75 1QFY12
Total 9.8 msf 7.76 792
Source: Company/MOSL

Strong sales pick up in Gurgaon augurs well for new projects

An encouraging response to
ARIL's Gugraon residential
projects bodes well for its
new launches
Over the past six months sales momentum has picked up well in Gurgaon with key real
estate players like Unitech and DLF drawing a huge response to their residential and
plotted development projects in all segments. ARIL also has witnessed an encouraging
response to its Manesar project (1.2msf), which was completely sold out during 9MFY11.
Industry sources suggest that in February 2011 Gurgaon recorded a ~45% MoM jump in
sales volume (~7msf v/s ~5msf in January 2011 and ~3msf in July 2010). This was backed
by an increase in the number of launches and absorption of mid-income (Rs3,000-5,000/
sf) and high-end (Rs5,000-7,000/sf) projects in peripheral zones. We believe ARIL's newly
acquired projects will come on the market at an appropriate time to benefit from strong
market momentum. Its township project in the attractive Golf Course Road is likely to
draw strong response from the high-end customer segment and its projects in Sector 91,
Manesar and Rajasthan (Neemrana) are strategically placed to tap the mid-income and
affordable segments.
NCR absorption rate highest among key RE markets

Bangalore price appreciation Mumbai price appreciation

NCR price appreciation Bangalore absorption rate (%)
Mumbai absorption rate (%) NCR absorption rate (%)
150 40%

125 30%

100 20%

75 10%

50 0%
1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010

Source: REIS-JLLM/MOSL

18 April 2011 2
 Anant Raj Industries

Capital values in most locations in the NCR have appreciated by over 20% a year, with
Gurgaon (a high-end segment) registering 36% increase in values. This can be attributed
to rising interest from end-users and economic revival at large. Though any sharp pricing
upswing could dampen the sales velocity, we believe a moderate price increase is anticipated
due to strong end-user demand over next 6-12 months.

Golf Course Road project can be a major revenue driver

We expect the incubation of
Golf Course Road in
1HFY12 and the
monetization of plotted
developments
We expect ARIL's township project in Golf Course Road (Sector 63A) to be a key growth
driver over FY12-14. ARIL acquired 163 acres of land (development potential of 6.6msf)
for ~Rs6.8b and it plans to develop the project as a township with plotted development in
the initial phase, followed by residential and commercial segments. The project has obtained
zoning approval for the township and the master layout plan approval is expected over the
next three months. We expect the early phase (plotted development) of monetization of
the Golf Course Road project to start in 1HFY12. The management is looking to acquire
more land in the area, taking its total area to ~200 acres.

Details of the Golf Course Road project

acres FSI (x) Saleable area (msf)
Township plotted 105 2.3
Independent floor/row houses 30 1.5 1.2
Residential group housing 22 1.75 2.0
Commercial 7 1.75 0.6
Commercial for T/S 5 1.75 0.5
Total land area 169 6.6
Source: Company/MOSL

Golf Course Road project to account for 24% of ARIL's GAV

Area FY12 FY12 Cost Launch Completion GAV (Rs b) GAV (Rs/sh) GAV (%)
(msf) Realization (Rs/sf) date
(Rs/sf)
Township, plotted (m sq yard) 2.3 6,000 500 FY12 FY15 11.3 38.3 13
Independent floor/row houses 1.2 5,500 1,800 FY13 FY17 2.8 9.6 3
Residential group housing 2.0 5,000 2,000 FY13 FY18 3.6 12.4 4
Commercial 0.6 6,000 2,500 FY13 FY17 1.8 6.2 2
Commercial for T/S 0.5 6,000 2,500 FY13 FY17 1.3 4.4 2
6.6 20.9 70.9 24
Source: Company/MOSL

The Golf Course Road
project could contribute
24% of ARIL's GAV
We believe the Golf Course Road project could spell the success of ARIL's land acquisition
strategy. At its existing acquisition cost and our assumed monetization timeline, the project
is likely to enjoy a pre-tax IRR of ~51%. Our estimate suggests the Golf Course Road
township project is likely account for 30-50% of ARIL's sales volume in FY12 and FY13,
aggregating about half of its sales accruals. We estimate the project will account for
Rs20.9b, implying ~24% of its GAV at Rs71/share (v/s GAV of Rs294/share).

18 April 2011 3
 Anant Raj Industries

Golf Course Road project to account for a significant portion of ARIL's sales volume and value over FY12-14

Total sales volume (msf) Total accruals (Rs b)

Golf course sale volume (msf) Golf Course accruals (Rs b)
54 4.5
Golf course contribution (%) Golf course contribution (%) 22.1
50
40 42
17.4
2.7 32
27
2.0
8.7 9.2
1.5 1.5
1.3 6.7
5.2
0.3 2.1

FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14

Source: Company/MOSL

Cashflow and revenue contribution of the Golf Course Road project (Rs b)
Cash Inflow FY12E FY13E FY14E FY15E
Plotted develoment 1.0 3.2 4.5 4.3
Independent floor/row houses - 0.3 0.8 1.4
Residential group housing - 0.3 0.9 1.6
Commercial - 0.2 0.5 0.8
We expect robust cash flow Commercial for T/S - 0.1 0.3 0.6
Total Cash Inflow 1.0 4.1 6.9 8.8
and revenue contribution
Cash outflow
from the Golf Course Road Plotted develoment 0.0 0.0 0.0 0.0
project Independent floor/row houses - 0.1 0.3 0.5
Residential group housing - 0.1 0.4 0.7
Commercial - 0.1 0.2 0.4
Commercial for T/S - 0.0 0.1 0.3
Total Cash Outflow 0.0 0.4 1.0 1.9
Net Cashflow 1.0 3.7 5.9 6.9
Revenue 1.0 3.4 5.0 9.0
Cost 0.3 1.0 1.5 3.6
Gross Profit 0.7 2.3 3.4 5.4
Source: Company/MOSL

Lack of clarity persists on super-luxury projects…

Litigation/approvals
overhang persist on the
Hauz Khas and
Bhagwandas projects, and
the development of ARIL's
other Delhi land awaits
implementation of the
Delhi Master Plan
ARIL has two city-centric luxury projects in Hauz Khas (0.26msf) and Bhagwandas
(0.25msf) in the heart of South-central Delhi. The projects have been delayed due to
litigation and approval-related issues. Our estimates indicate the projects could contribute
~Rs11.2b (~13%) to ARIL's GAV. We believe lack of clarity on the status of the projects
has been a key headwind. We model the launch of the projects in FY13.
ARIL owns about 500 acres of fully paid land in Delhi. However, most of its Delhi projects
such as Tilak Marg, Nazafgarh and Nagli Poona are unlikely to be launched before FY13,
since such lands fall beyond Delhi's existing development plan and cannot be monetized
through residential development. In this regard, we believe ARIL will be a key beneficiary
of the implementation of Delhi Master Plan 2021, which includes such land. The
management said ongoing infrastructure development in these locations was likely to boost
demand for residential projects from FY13.

18 April 2011 4
 Anant Raj Industries

Focus on mid-income …new projects, affordable housing strategy offset concerns

housing to augment While delay in monetizing old assets remains an overhang, we expect monetizing the Golf
sales velocity Course Road project to significantly mitigate ARIL's cash flow concerns. Its low cost
land bank renders ARIL a huge opportunity to tap affordable and mid-income demand
through projects in New Gurgaon, Rajasthan and Rai. ARIL's recent launch plans include
Expect strong sales volume
(msf)
an affordable housing project Neemrana (Rajasthan), where the company is likely to
launch ~2,800 units, with expected sales realization of Rs1,400/sf (ticket sizes of Rs0.7m
2.5
onwards) for the EWS/MIG segment. We expect that the focus on the affordable housing
segment is likely to bolster its sales volume.
1.5
1.3
Key launch pipeline in mid-income segments
0.5 Projects Area (msf) Expected realization Target Expected
(Rs/sf) segment launch date
Gurgaon Sector-91 1.5 ~3800 Mid-income 1HFY12
4QFY11E

FY12E

FY13E
9MFY11

Neemrana, Rajasthan 2.0 ~1400 Affordable/EWS 1HFY12

Housing project, Rai, Sonepat 1.0 ~2400 Affordable 2HFY12
Source: Company/MOSL

Source: Company/MOSL
Leverage comfortable despite surge in net debt
In FY11, ARIL's debt increased sharply to Rs8.8b (v/s net cash of ~Rs3.5b in FY10),
implying net DER(x) of 0.24x, mainly to fund construction of its residential projects
(Kapasera and Manesar) and ongoing commercial projects (Manesar IT Park, Kirti Nagar
Mall, IT SEZ at Rai and IT Park at Panchkula).

Increase in net debt
causes no concern,
cashflow visibility
offsets liquidity risk
ARIL is looking to acquire more land in Golf Course Road in 1QFY12, which is likely to be
the last leg of its land acquisition plan. We believe it could be an indication of further
increase in debt in 1QFY12. However, we believe ARIL is unlikely to face liquidity pressure
due to (a) easy repayment period (average maturity of its debt is 6-7 years, with no
repayment in FY12 and only ~Rs500m in FY13), (b) strong cash flow visibility from
recently acquired projects, and (c) support from annuity income, which we expect to grow
to Rs1.6b by FY12 (v/s ~Rs800m in FY11).

ARIL is expected to return to net cash by FY14 ARIL has one of the soundest balance sheets in the RE domain

Net debt (Rs b) Net DER (x)

0.8 Net debt (Rs b) Net DER (x)
0.2 0.8
0.2
8.8
6.7 0.0 0.4
0.4 0.4
211 0.4
1.8 0.3
0.2
-4.2 -3.5 0.1
-5.5
-0.1 52 38 13 10 7 7 5 4
-0.1
-0.2
HDIL

GPL
DLF

Unitech

Prestige

Mahindra
Indiabulls

Phoenix
Anant
Raj

Mills

Life

FY08 FY09 FY10 FY11 FY12E FY13E

Source: Company/MOSL

18 April 2011 5
 Anant Raj Industries

We expect ARIL's leverage to fall steadily due to monetization from the early phase of
plotted development in the Golf Course Road project, which provides it with a huge cushion
against liquidity risk. ARIL is looking forward to repaying a significant portion of its debt in
FY12 and FY13, and to returning to a net cash position by FY14.

Growing annuity income a strong cushion

ARIL is well placed to
leverage on the recovery of
the commercial vertical, with
projects to be delivered over
FY12 and FY13
ARIL will be a key beneficiary from the ongoing revival of the commercial vertical. While
the lease momentum in its IT Park project at Manesar has been slower than expected, we
believe commencement of (a) Kirti Nagar Mall, (b) IT SEZ, Rai, (c) a few hotel projects
and (d) increase in operational clients in Manesar IT Park will boost ARIL's annuity
income. We model ARIL's annuity income increase to Rs1.6b in FY12 and to Rs2.3b in
FY13 from Rs814m at present. ARIL's growing annuity income will provide it with strong
resilience to its cash flow during a down cycle.

Key annuity projects under development

Projects Area (msf) Expected completion Remarks
Manesar IT Park 1.1 Completed ~50% yielding rent, average rental
Rs35/sf
Kirti Nagar Mall 0.8 1HFY12 50-60% of area tied-up, average
rental value Rs110/sf
IT SEZ, Rai- Phase I 2.1 4QFY12 ~0.6msf tied up, average rental
Rs30/sf
Hotel Tri Color 0.6 1HFY12 Expected to contribute Rs7.5m/mth
Hotel at Manesar IT Park 0.1 1HFY12
IT Park Panchkula Phase I 0.5 FY13-14
Source: Company/MOSL

Annuity income expected to increase to Rs1.6b by FY12 (Rs m)

Area (msf) Rental FY11 FY12 FY13
(Rs/sf/month)
IT - Parks
Manesar Haryana 1.1 34 258 366 454
Rai Haryana 3.0 27 0 81 345
Sub - Total (A) 4.1 258 447 799
Percentage of total rental income 31.7 27.4 34.9
Kirti Nagar Mall, IT Parks Commercial/ Retail
at Manesar and Rai are the Koral Bagh, Delhi 0.1 155 48 50 53
key growth drivers of ARIL's Kirti Nagar, Delhi 0.8 124 0 419 687
Jhandewalan, Delhi 0.2 61 144 151 159
annuity income
Faiz Road, Delhi 0.0 27 6 6 7
Rani Jhansi Road, Delhi 0.0 35 5 6 6
Sub - Total (B) 1.1 210 662 943
Percentage of total rental income 25.7 40.6 41.2
Hotels
Manesar IT Park 0.1 - 0 68 71
Shahoorpur, Delhi, Kalinga 0.5 - 95 99 104
Grand Meadows Near Airport, Delhi 0.3 - 63 66 69
Papillion Estates, Near Airport, Delhi 0.2 - 63 66 69
Bhasin Resorts, Shahoorpur, Delhi 0.4 - 126 132 139
Tri Color NH8 Delhi, Reliance JV 0.6 - 0 90 95
Sub - Total (C) 2.1 347 521 547
Percentage of total rental income 42.6 32.0 23.9
TOTAL (A+B+C) 7.4 - 814 1,630 2,289
Source: Company/MOSL

18 April 2011 6
 Anant Raj Industries

We expect a steady
Valuation discount offers attractive entry point
improvement in ARIL's RoE
ARIL has a robust business model with multiple revenue streams, relatively healthy liquidity
on account of faster
and high visibility of monetization. While successful utilization of surplus cash in value
monetizations
accretive land acquisition will mitigate the risk of delay in luxury projects, a strong focus
on mid-income housing and the arrival of readily saleable projects (like the Golf Course
Road project) in its portfolio, is likely to provide it with robust cashflow momentum.

ARIL is likely to be a key beneficiary from the ongoing recovery in the commercial vertical
with ~4msf of completed commercial/retail projects and ~3msf of projects under
construction. We estimate its FY11 rental income will be Rs814m, which is expected to
increase to Rs1.6b in FY12 and to Rs2.3b in FY13.

However, to incorporate the delay in monetization of its old projects, we are revising our
NAV estimate downward by ~10% to Rs167 (v/s Rs185 earlier). The stock trades at
11.4x FY12E EPS of Rs8.1, 6.1x FY13E EPS of Rs15 and ~45% discount to its NAV. Its
ongoing operation and fully paid land bank render strong support to current valuations. At
0.7x FY12E BV of Rs134, ARIL offers an attractive entry point, as we expect its RoE to
improve meaningfully from 4.9% in FY11 to 6.2% in FY12 and 10.7% in FY13 going
forward, through faster monetization. We reiterate Buy with a target price of Rs140.

We estimate ARIL's one-year forward NAV at Rs167

Particulars Rs m NAV/share % NAV % GAV
Residential 50,310 171 102.2 58.0
Commercial and Retail 16,027 54 32.6 18.5
Hotels 1,861 6 3.8 2.1
IT Parks 17,412 59 35.4 20.1
SEZ 1,134 4 2.3 1.3
Gross Asset Value 86,744 294 176.2 100.0
Less: Net debt 8,750 30 17.8 10.1
Less: Other op exp 6,940 24 14.1 8.0
Tax 21,686 74 44.1 25.0
Land costs 150 1 0.3 0.2
Net Asset Value 49,218 167 100.0 56.7
Source: Company/MOSL

Strong near term triggers Near term triggers

offer a meaningful upside The near term triggers for ARIL are:
(a) Successful monetization of plotted development project in Golf Course Road,
(b) Timely delivery of annuity projects coupled with the revival of the commercial vertical
and stronger rentals, and
(c) Monetization visibility of luxury projects at Hauz Khas and Bhagwandas and older
projects after the implementation of the Delhi Master Plan.

18 April 2011 7
 Anant Raj Industries

Existing projects offer a strong cushion to valuations

As illustrated below, ARIL has a strong cushion of Rs80/share from value emerging from
its existing projects such as (a) operational annuity assets, (b) pre-sold residential projects
and (c) remaining land parcel, valued at acquisition costs. Hence, we expect near to
medium term triggers to provide a strong upside.

Key land bank ARIL's ongoing portfolio offers support at ~Rs80/share

Particulars Area Cost Rsb Rs/sh
(acres) (Rs b) Capitalized value of annuity assets (11% cap rate) 13.5 46
Residential Pre-sold projects (Kapasera/Manesar) 1.4 5
Delhi 188 5.3 Projects under soft launch (Gurgaon) 1.4 5
Others 229 5.7 Other land valued at cost 16.0 54
Commercial Less: Net debt (Rs b) 8.8 30
Delhi 3 0.15 Value From Current Projects 24.0 80
Others 42 0.05 Key triggers: Value accretion from furture devlopments
IT Park/SEZ 305 1.7 Golf Course Road Project 10.5 36
Hotel 300 3.1 Hauz Khas + Bhagwandas 5.3 18
Total 1,067 15.9 Development of future projects 10.0 33
Total 49.2 167
Source: Company/MOSL

Key near term triggers offer value unlocking potential (Rs/share)

Value from existing portfolio Key triggers

33
18
30 36
54
9
46

Upcoming
Operational

Less:Net debt

Road project

Hauz Khas +
sold/ongoing

Golf Course
Acquisition

remaining

Bhagwandas

projects
cost of
annuity
assets

projects

land
Pre-

Source: Company/MOSL

18 April 2011 8
 Anant Raj Industries

Financials and Valuation

Income Statement (Rs Million) Ratios

Y/E March 2009 2010 2011E 2012E 2013E Y/E March 2009 2010 2011E 2012E 2013E
Net Sales 2,508 3,111 4,492 6,916 11,135 Basic (Rs)
Change (%) -58.5 24.0 44.4 54.0 61.0 Adjusted EPS 7.0 8.1 6.1 8.1 15.0
Construction expenses 148 283 1,730 2,992 4,035 Growth (%) -52.5 14.8 -24.5 32.7 85.7
Staff Cost 63 79 94 113 136 Cash EPS 7.3 8.4 6.6 8.8 16.1
Selling & Adminstrative exp 101 163 192 290 459 Book Value 112.7 121.8 127.0 133.8 148.1
EBITDA 2,197 2,586 2,475 3,522 6,505 DPS 0.6 1.0 1.0 1.5 4.0
% of Net Sales 87.6 83.1 55.1 50.9 58.4 Payout (incl. Div. Tax.) 9.6 13.9 18.5 20.9 6.0
Depreciation 86 107 150 205 316
Interest 5 49 205 541 905 Valuation (x)
Other Income 701 535 310 450 707 P/E 11.4 15.1 11.4 6.1
PBT 2,806 2,965 2,431 3,225 5,990 Cash P/E 10.9 13.9 10.5 5.7
Tax 733 581 632 839 1,557 EV/EBITDA 9.1 13.4 9.6 4.5
Rate (%) 26.1 19.6 26.0 26.0 26.0 EV/Sales 7.6 7.4 4.9 2.6
Reported PAT 2,071 2,384 1,799 2,387 4,433 Price/Book Value 0.8 0.7 0.7 0.6
Extra-ordinary Income (net) -2 1 1 1 1
Adjusted PAT 2,073 2,383 1,798 2,386 4,432 Profitability Ratios (%)
Change (%) -52.5 15.0 -24.5 32.7 85.7 RoE 6.7 6.9 4.9 6.2 10.7
RoCE 8.6 8.1 6.1 7.5 12.9

Balance Sheet (Rs Million)

Leverage Ratio
Y/E March 2009 2010 2011E 2012E 2013E
Debt/Equity (x) 0.1 0.0 0.3 0.3 0.3
Share Capital 589 590 590 590 590
Reserves 32,431 35,360 36,900 38,899 43,125
Net Worth 33,198 35,951 37,490 39,489 43,715
Loans 2,102 1,390 10,318 11,318 11,318
Cash Flow Statement (Rs Million)
Deffered Tax Liability 26 9 26 26 26 Y/E March 2009 2010 2011E 2012E 2013E
Capital Employed 36,013 38,206 48,522 51,521 55,746 PBT before EO Items 2,804 2,964 2,431 3,225 5,990
Add : Depreciation 86 107 150 205 316
Gross Fixed Assets 14,131 20,147 27,355 31,243 32,028 Interest 5 49 205 541 905
Less: Depreciation 518 634 1,189 1,395 1,711 Less : Direct Taxes Paid 733 581 632 839 1,557
Net Fixed Assets 13,613 19,513 26,165 29,849 30,317 (Inc)/Dec in WC -73 -2,420 4,090 -418 640
Capital WIP 7,211 7,457 7,591 7,042 5,295 CF from Operations 2,246 5,128 -2,106 3,550 5,013
Investments 3,089 2,949 2,949 2,949 2,949
(Inc)/Dec in FA -4,703 -6,253 -6,936 -3,340 965
Curr. Assets 13,305 10,150 18,864 21,299 29,993 (Pur)/Sale of Investments-1,603 140 0 0 0
Inventory 126 118 8,034 8,998 11,301 CF from Investments -6,306 -6,113 -6,936 -3,340 965
Debtors 2,405 2,399 3,182 3,879 4,647
Cash & Bank Balance 6,257 4,891 4,357 4,639 9,505 (Inc)/Dec in Networth 2,964 712 117 111 59
Loans & Advances 4,517 2,742 3,290 3,783 4,540 (Inc)/Dec in Debt 1,521 -712 8,929 1,000 0
Less : Interest Paid 5 49 205 541 905
Current Liab. & Prov. 1,260 1,890 7,048 9,619 12,806 Dividend Paid 199 332 332 498 266
Creditors 99 1,134 1,707 1,792 1,882 CF from Fin. Activity 4,282 -381 8,509 72 -1,112
Advance received 65 0 4,377 6,490 8,269
Other Liabilities 160 0 0 0 0 Inc/Dec of Cash 210 -1,366 -533 282 4,866
Provisions 936 756 964 1,337 2,656 Add: Beginning Balance 6,048 6,257 4,891 4,357 4,639
Net Current Assets 12,046 8,260 11,816 11,680 17,187 Closing Balance 6,257 4,891 4,358 4,640 9,505
Misc. Expenses 54 27 0 0 0
Application of Funds 36,013 38,206 48,522 51,521 55,748
E: MOSL Estimates

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 Anant Raj Industries

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Disclosure of Interest Statement Anant Raj Industries

1. Analyst ownership of the stock No
2. Group/Directors ownership of the stock No
3. Broking relationship with company covered No
4. Investment Banking relationship with company covered No

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