The Byke Hospitality

The Byke Hospitality

BSE
Value Research
Screener
Value Picker

Date	Events
Feb 2018	--Promoter shareholding increased in Dec 2017. FII increased too. --20% room to be made within a year.
Sep 2017	As per one investor Average rating on TripAdvisor website between 3-3.5.
Sep 2017	Con call: --A lot of people asked about their goal of having 25 properties by 2020. Is it realistic? Anil was emphatic in saying that they want to meet that goal ahead of time. Bye brand either through leasing model or through franchise model. Now they are planning to take bigger / larger hotels. - online hotel booking platform, he said they will resume work on it soon after the GST related disruption settles down --Thane's property has received booking for even 2019. --Delotel, Borivili, said the property is ready but OC is not there yet.
Aug 2017	Byke Vijoya (54 rooms), Byke Hidden Paradise (40 rooms), --Leased out Byke Sunflower (owned property of 22 rooms) in FY18
Jun 2017	- The Company has changed its accounting method to revenue from large to net basis for room chartering segment from April 1, 2017, hence current year number is not comparable to last year
Jun 2017	Con call: - The company has projected  to add 300 rooms in FY18 . They are looking at 4-6 properties with size of 60+ rooms. The company usually spends  6-7L per room for renovation . - The company aspires to do  500 rooms  in this model by  FY19 . Since the Byke wants to be used, the hotels would like to provide training to the franchise employees.
May 2017	Byitus Vijoya (54 rooms) Puri, Byke Hidden Paradise (40 rooms) Goa, --Leased out Byke Sunflower (owned property of 22 rooms) Goa in FY17
Mar 2017	Con Call: The company is focusing on F & B business as it can provide more revenue with same asset. Aimed towards  destination weddings, conferences, corporate events . The hotel bought the Thane & Borivali hotel with this in mind.

Topline	Expected to increase
Operating margin%	@ 33% To remain flat or increase
PE	@ 20 Expected to be flat or increase
3 Mar 2018

Cupid

Cupid
BSE
Value Research
Screener
ValuePicker

Main strategic themes that will drive us to the next ladder of growth as per FY 2017 annual report:

1. Strengthen our institutional business in new territories

a. 44.7 billion pieces by 2021 from 26.5 billion pieces in 2015 and we expect the growth to come from select markets

b. Brazil, Nigeria, Tanzania and Indonesia where there is significant demand for the products and we have started with the process of getting our products registered.

Got its product registered in Tanzania (Feb 2018). Efforts on for Brazil.

c. United Nations population fund (UNFPA), WHO, USAID, CIS countries, India. Client concentration - 50% order from Gov of SA.

2. Foray into the United States for Female Condoms

a. Already done for male condoms

b. USFDA approval wants to qualify Cupid for bidding for USAID tendering for distribution of condoms across the world.

c. In this issue, it will be released in January 2019. There is only one manuf in US. Current sale of FC in US market is 6 to 10 million pc in retail.

3. India Based B2C business

a. launched our Cupid range of male and female condoms along with jellies through a well-thought-out promotional activities and a robust distribution network

b. aiming to establish a strong retail presence by appointing its super stockists

c. India foray starts in Mumbai with Pune, Ahmedabad, Jaipur, Calcutta and few other states

d. intend to bolster sales through online channel and target to distribute products at 1,000+ towns and cities in India. For B2C online sales there is 15% repeat order. Orders are from 50 to 350 towns. 1200 orders mostly 1 pc. SP Rs 50. (Nov 2017)

e. Competition of Reckitt Benckiser (durex), Alkem (playgard), JK helen (KamSutra), Mankind. All of them have very strong distribution channels and brand power. Mankind boast of 3 current brand ambassadors from Bollywood and so getting big B.

f. Two new players have come in India with more ad spend. (Feb 2018)

4. New product initiatives

a. Launch of our unique patented male condom giving extra pleasure to the user during safe sex

b. Second generation hi-tech version of Cupid Female Condom

c. Foray into hand sanitizers (Mar 2018), vaginal creams and wipes used in the slowdown of premature ejaculation 

Important notes

--Promotives sold in bulk deal in March 2017. It is one sale and one sale in NY .

--Basant Maheshwari sold off his entire stake (including Pooja Maheshwari) in mar 2017

--The promoter is in his 70s and his children are not keen to run the business. Cupid is looking for a professional CEO.

--From a business nature perspective, the contract manufacturing business contributed close to 20% in overall sales

--Margin wants to get impacted if more MC sells compared to FC.

--There will be 5% reduction in FY 2019.

--ISU has offered their 3 patented FC for manufacturing. Cupid is silently considering the same. (Nov 2017)

timeline	Events
Feb 2018	Installed capacity till now to produce 325 million male condoms, 20 million female condoms and 210 million sachets of Lubricant Jelly Machine can be converted to MC or FC. 80 million MC = 22 million FC from same machine per year
Feb 2018	20% capacity increase - cost 7 cr - 2 machines - can produce 12 cr worth of MC. If used for FC it can produce 40 cr worth. To go live in Jun 2019
Feb 2018	- New tender from south africa - there would be 4 qualified bidders. - End date of bidding is March 2018, Result in April 2018, supply from July 2018 - Female Order from 54 million to 120 million (80 import + 40 local manf) over 3 years, worth 240 Cr --1 billion times C each year for 3 years --Lubricant 20 million sachet each year --Expected order is 25 million for exports - 20 million as part of joint venture in South Africa probable in Mar 2019 --Old order of Female C from South Africa was 103 cr (43 million pc, 80% of order size) for 3 years. But it seems to be over 70 years --71 cr order book for next three quarters (india order + pharmaceutical company + old south africa order + WHO) (52 MC + 19 FC)
Dec 2017	Of Domestic sale 10% sales from B2C 90% on B2B
	Expecting FC sale of 50 Cr = 25 million unit in 2019

Topline	Expected to increase by 20%
Operating margin%	@ 40% To remain flat or decrease
PE	@ 16 Expected to be flat or increase
Mar 3 2018

Nitin Spinners

Nitin Spinners
Screener
BSE
Value Research


Content mentioned is just for my reference. Do your own analysis before investing.

positive

- Feb 2018 - Revenue CAGR FY13-17 = 20%

                   PAT CAGR = 19%

                   EPS from 3.1 to 12.5

                   PE from 3 to 10

- Feb 2018 - Issue of 6,68,290 preferred shares @ Rs.120.5 per share aggregating to Rs 8,05,28,945.

- Dec2017 -  Issue of 10,00,290 preferred shares  @ Rs.120.5 per share aggregating to Rs 12,05,34,945

- Nov 2017 - Issue of 93,85,765 shares (QIP)  @ Rs.115 per share aggregating to Rs108 Cr for loan repayment & general business use.

negative

ebidta - Reducing from 19% to 14.35%

Business Information

Products: 100% Cotton Yarn and Knitted Fabrics
Plants located at Hamirgarh, District Bhilwara (Rajasthan)
Milestones

Year	Rotters	spindles	Knitting machine	Finished fabric	Dying	Power plans / Comments
1993	384	0	0	0	0
1999	1,464	0	0	0	0
2002	0	14112	7	0	0
2005	0	13,104	8th	0	0
2007	0	50,400	12	0	0	7.66 MW fuel oil based power plant
2008	2,000	0	0	0	0	10.5 MW captive thermal power plant
2015	0	72480	18	0	0
Feb 2017	0	72960	14	0	0	Capex 300 cr.Debt 250 cr.
Total	2,936	2,23,056	63	0	0	Topline to be 1100 cr
Total	50K ton of yarn / year		9k ton of fabric / year	0	0
Proposed in Dec 2017	18K ton of yarn / year			36 mn meters	50 mn meters	Capex of 650 Cr 50 acre of land
Next phase				knit fabric processing and printing		Capex of 350 Cr

price range

Assuming a net margin of 6-6.5% on sales of 1500 Cr, PAT for 2018-19 works out to be 90-100 cr. At PE of 10, company should sell for 1000 Cr by Mar 2019 compared to 600 Cr now giving an upside potential of 60%.



MP on 24 Feb 2018 @ 108
Lower resistance @ 105  
Upper resistance @ 130 & 140