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Company Overview
Anugraha Valve Castings Limited (AVCL) stands as a prominent steel foundry nestled in Coimbatore, South India, a hub renowned for its steel industry. With a robust infrastructure comprising four foundries and two machine shops, AVCL caters to a diverse array of industries including engineering, petroleum, chemicals, and gas.
Since its inception in 1993, AVCL has been a stalwart in the manufacturing and exportation of steel castings, primarily servicing the valve and pump sectors. Backed by a promoter with over two decades of expertise in steel castings and valve manufacturing, the company has cultivated a sterling reputation for its adherence to international quality standards.
AVCL’s export prowess is noteworthy, with approximately 90% of its revenues sourced from international markets, particularly Europe, with key destinations including Germany, Italy, and France. The company’s clientele boasts stability and diversity, buttressed by enduring relationships and a recent expansion into markets such as the US, Canada, and Russia.
In terms of production capacity, AVCL exports over 36 million US dollars worth of steel castings annually, comprising various materials including Steel, Stainless Steel, Alloy Steel, Nickel-based alloy, Duplex, and Super Duplex steel. Notably, the company’s manufacturing units and modern machine shops, equipped with conventional and CNC machines, ensure efficiency and precision in production processes.
However, AVCL grapples with certain challenges, including moderate scale of operations and customer concentration, evident from a substantial portion of revenue derived from a handful of clients. Moreover, the business contends with high working capital intensity due to extended transit and manufacturing cycles.
Financially, AVCL’s performance in FY21 exhibited a decline in revenue alongside an increase in Profit After Tax (PAT), supported by a comfortable Debt to Equity ratio of 0.12. Yet, challenges persisted with a modest Return on Net Worth (RONW) of 6.8%. Subsequently, FY22 witnessed revenue growth but a decline in Gross Margins, impacting profitability metrics including Earnings Per Share (EPS).
The company remains susceptible to fluctuations in raw material prices, particularly Ferrous scrap, and regulatory changes in export incentives, owing to its significant reliance on export markets. Despite these challenges, AVCL continues to navigate the competitive landscape with resilience and a commitment to quality and customer satisfaction.
Fundamentals
| Current Price | ₹ 295 | Debt to Equity | 0.38 |
| Market Cap | ₹ 103.84 Cr. | Face Value | ₹ 10 |
| Book Value | ₹ 598.07 | Stock P/E | – |
| P/B | 0.49 | P/E Ratio | 51.94 |
| PAN Number | AACCA2285Q | EPS | 5.68 |
| ISIN | INE629Z01015 | No. of Shares | 3.52 Cr. |
Promoters & Managements
| Name | Designation |
|---|---|
| Shri R. Baskaran | Chairman & MD |
| B. Anandkumar | Joint Managing Director |
| Financials | 2022 | 2023 |
|---|---|---|
| Revenue | 6714 | 6950 |
| Cost of Material Consumed | 4981 | 5534 |
| Gross Margins (%) | 25.78 | 20.32 |
| Change in Inventory | 277 | -39 |
| Employee Benefit Expenses | 627 | 716 |
| Other Expenses | 290 | 115 |
| EBITDA | 536 | 619 |
| OPM (Operating Profit Margin) (%) | 7.99 | 8.91 |
| Other Income | 3 | 5 |
| Finance Cost | 222 | 184 |
| D&A (Depreciation & Amortization) | 151 | 136 |
| EBIT (Earnings Before Interest & Taxes) | 385 | 483 |
| EBIT Margins (%) | 5.74 | 6.95 |
| PBT (Profit Before Tax) | 166 | 304 |
| PBT Margins (%) | 2.47 | 4.38 |
| Tax | 51 | 14 |
| PAT (Profit After Tax) | 115 | 290 |
| NPM (Net Profit Margin) (%) | 1.71 | 4.18 |
| EPS (Earnings Per Share) | 0.78 | 0.52 |
Assets
| Asset Category | 2022 | 2023 |
|---|---|---|
| Fixed Assets | 809 | 1216 |
| CWIP (Capital Work in Progress) | 0 | 47 |
| Investments | 0 | 200 |
| Trade Receivables | 2710 | 4613 |
| Inventory | 1421 | 1460 |
| Other Assets | 518 | 3643 |
| Total Assets | 5458 | 11179 |
Liabilities
| Liability Category | 2022 | 2023 |
|---|---|---|
| Share Capital | 1474.8 | 5594 |
| Face Value (FV) | 10 | 10 |
| Reserves | 767.6 | 2621 |
| Borrowings | 1819 | 1845 |
| Trade Payables | 1099 | 860 |
| Other Liabilities | 297.6 | 259 |
| Total Liabilities | 5458 | 11179 |
| Cash Flow Category | 2022 | 2023 |
|---|---|---|
| Cash Generated From Operations | 443 | -5213 |
| Tax | -49 | 1 |
| Cash Flow From Operations | 394 | -5212 |
| Purchase of PPE (Property, Plant, and Equipment) | -28 | -1359 |
| Sale of PPE | 0 | 0 |
| Cash Flow From Investment | -25 | -1554 |
| Borrowing | -113 | -1044 |
| Dividend | 0 | 0 |
| Equity | 0 | -4869 |
| Other Financing Activities | -222 | 12780 |
| Cash Flow from Financing | -335 | 6867 |
| Net Cash Generated | 34 | 101 |
| Cash at the Start | 270 | 63 |
| Cash at the End | 304 | 164 |
Share Holding Pattern
| Year | Promoters (%) | Public (%) |
|---|---|---|
| 2022 | 85.92 | 14.08 |
| 2023 | 86.13 | 13.87 |
Frequently Asked Questions (FAQ)
Find answers to common questions, providing clarity and insights to address any queries on your mind.
Contact Us: Reach out to Unlistify to confirm availability and agree on a price.
Provide KYC: Submit your Client Master Report, PAN card, and a cancelled cheque.
Make Payment: Transfer funds to our designated bank account (RTGS/NEFT/IMPS/cheque). Ensure the payment originates from the same account where you want the shares credited.
Receive Shares: We’ll transfer the Anugraha Valve shares to your Demat account within 24 hours of payment confirmation.
Get a Quote: Unlistify will provide a buyback price for your Anugraha Valve shares.
Share Details: Submit your Client Master Report.
Transfer Shares: Transfer the Anugraha Valve shares to our Demat account using a DIS (Delivery Instruction Slip).
Receive Payment: We’ll transfer funds to your bank account within 24 hours of receiving the shares (RTGS/NEFT/IMPS/cheque). For security reasons, payment will only be made to the account linked to your Demat
DIS (Delivery Instruction Slip): A DIS is a form used to authorize the transfer of shares from your Demat account.
Methods:
Offline DIS: Fill out a physical DIS form with details like the ISIN number, quantity, price of your Anugraha Valve shares, and our account information. Submit this to your broker.
Online DIS: Some brokers offer online DIS systems for easier transfers.
Unlistify aims to make unlisted share investing accessible. The current minimum investment for Anugraha Valve Unlisted Shares is approximately 35,000 – 50,000 INR.
Limited Liquidity: Unlisted shares are not traded on public exchanges, making it potentially harder to find buyers when you want to sell.
Price Volatility: Prices can fluctuate more than listed shares due to less publicly available information.
Regulatory Changes: Regulations for unlisted shares can change, affecting their value and trading.
Company-Specific Risks: Each company has its own risks related to its industry, financials, and management.
No Guarantee of Listing: There’s no assurance that unlisted shares will ever be listed on a public exchange.
Market Leader: Unlistify is one of India’s fastest-growing unlisted share platforms.
Transparency: We provide clear information about each unlisted share, including potential risks.
Security: We prioritize the protection of your financial information.
Customer Support: Our team is dedicated to guiding you through the investment process.
Latest Funding: We consider the valuation from Anugraha Valve most recent funding round.
Comparable Companies: If there’s no recent funding, we analyze similar listed companies to estimate a fair value.
SEBI’s Influence: SEBI regulations do apply to some aspects of unlisted share trading, such as lock-in periods and transaction charges. However, there are no specific SEBI regulations for becoming an unlisted broker.
We aim for same-day transfer of Anugraha Valve Unlisted Shares to your Demat account after your payment is confirmed.
Tax Transition: Once your unlisted Anugraha Valve shares are listed and sold on an exchange, standard listed share tax rules apply.
Holding Period: Your holding period (for determining long-term vs. short-term capital gains tax) starts from the original unlisted purchase date.
