As per below, the transaction happened at 0.60x EV/FY19Sales (i.e. Of the few dealers that carried Uniply, they also carried other renowned brands such as Greenply, Centuryply, etc. A Multibagger Stock? Uniply Industries Ltd. | 508 followers on LinkedIn. Hunting for a potential multibagger stock is a difficult task. View Uniply Industries Ltd board meeting announcement date, date of Meeting and purpose of meeting UNIPLY INDUSTRIES LIMITED (Originally Incorporated on September 4, 1996 as Uniply Industries Private Limited under the Companies Act, 1956. Let us take a closer look at each of them. As per our analysis of the economic value of this transaction (not the 300cr economic value quoted by the management as per the above excerpt), it appears that Uniply Industries’ shareholders went from owning 100% of the Plywood business to ~37%, while receiving discounted valuation for the stake sale. De-growth in Plywood’s B2C Business: Uniply’s B2C business seems to have de-grown significantly from the time it was acquired despite management's claims that the Plywood business has strong growth potential. We believe that we are helping make this a reality through a combination of better products and solutions, ultimately resulting in better homes and better workspaces. Weak Brand Advertisement: Actual advertisement expenditure has been nominal relative to the 4-5% of sales guidance provided by Keshav back in 2015. Why would Keshav sell down his stake from current ~27% to ~7%, when as per management, the firm is on a high growth trajectory, has strong order book and sufficient capital to realize its full potential? Even as the disposable incomes of most Indians have increased substantially over the years, our residential standards have not. "Designing Spaces That Satisfy Your Every Need", "Creating Comfortable Spaces For Every Budget", "Developing Infrastructures For A Modern Living", "Bringing The Made-To-Measure Experience To Every Corner Of Your Space", "We Furnish Your Life With World Class Comfort", "Premium Quality, Guaranteed with Superior Technology". We would appreciate your valuable feedback! For quick background, Uniply Industries ("Uniply") is a plywood business that was taken over in mid-2015 by new management under the leadership and ownership of Keshav Kantamneni, a private equity investor. Uniply Industries Limited is a Public incorporated on 04 September 1996. Since taking support at ₹375 in early February, the stock has been in a strong rally. As of end of FY19, excluding sales to Vector which is a B2B business, plywood business’ B2C revenues were <100cr, significantly lower than that in 2015. Uniply Industries Limited manufactures and sells plywood in India and internationally. Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium natuserror sit. ... Marksans Pharma, Cupid Ltd, Kesar Petro, Uniply Industries, Pressman Advertising, NGL Fine Chemicals etc. The Background page of Uniply Industries Ltd. captures the details on Company's Industry, Incorporation Date, Face Value, Registered Address, Web Site, Registrar, and Auditors information. Hello and Welcome to all. Most offices are designed around functional comfort and not business agility. Most designers respond with a ‘make do’ approach, resulting in a widening gap between what is needed and what is provided. Arihant Foundations & Housing Ltd crashed 14.69% to Rs 16.55. It also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. Uniply Industries Ltd (UNIPLY:NSI) forecasts: consensus recommendations, research reports, share price forecasts, dividends, and earning history and estimates. Investors with a short-term horizon can buy the stock of Uniply Industries at current levels. Another way to attest our above hypothesis on discounted valuation is, how come the 37% stake in the post-transaction UV Boards business was valued at 111cr when 63% of Uniply Industries’ erstwhile plywood business was valued at just 58cr, despite post-transaction UV Boards business comprising primarily of Uniply Industries’ erstwhile plywood business? The core design of India’s offices have not altered in years; most office spaces are merely larger replicas of the same design; most offices are a sequential extension of the same idea; most managements feel that their interior aesthetic fit-out creativity stopped at providing a large floor plate coupled with air-conditioning. Mudar Patherya is a veteran stock picker on the BSE and NSE and a specialist in penny stocks and micro-cap stocks. The stock of Uniply Industries purchased by R K Damani has given him multibagger return of 159% in 2016-17. Read more about Uniply plans manufacturing plant in AP on Business Standard. For Uniply, changes have always been on the positive side and our company has been building on its strengths to maintain its product superiority on an on-going basis and consistently. Uniply was founded in 1996 by a team of professionals from Kitply and Greenply. For quick background, Uniply Industries ("Uniply") is a plywood business that was taken over in mid-2015 by new management under the leadership and ownership of Keshav Kantamneni, a private equity investor. Get the latest UNIPLY INDUSTRIES stock price updates: UNIPLY INDUSTRIES live share price, financial results, financial report & balance sheet, and price charts only at Equitymaster.com X Sign up for Equitymaster's free daily newsletter, The Profit Hunter and get access to our latest Multibagger guide (2020 Edition) on picking money-making stocks. With reference to the earlier letter dated July 03, 2019 regarding Detailed Public Statement in respect of proposed acquisition of shares of Uniply Industries Limited ("Target Company") by M It is classified as Non-govt company and is registered at Registrar of Companies, Chennai. Incremental working capital of 165cr as discussed above. Deducting this 30cr from 104cr, gives us 84cr. In FY17, advertisement expenses were as low as <4 lakhs. 94cr EV/155cr FY19 Sales), and at 0.12x EV/PotentialSales (i.e. About Uniply Ind. Advertisement expenses were <17 lakhs in FY18 (<0.2% of plywood sales), despite a seemingly high and annually recurring (for 10 years) royalty fee of 7.5cr charged to Uniply Decor (3.75cr of which was paid for 2HFY18). Use the PitchBook Platform to explore the full profile. ... A multibagger plunges 10% in a day! The question we have to ponder is how we missed out on the bonanza and whether we are too late to the party. Below is a summary of Uniply Industries’ proceeds and use of capital over the past four years. during FY19, so only 100cr worth of warrants now remain unexercised). In FY18, the company also initiated some project work in the affordable housing construction space, which has since become a core business for the company. Uniply Industries Ltd., incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 64.54 Crore) operating in Building Materials sector. Penny stocks can be quality stocks (Penny Stocks with high trading | Midcap Bazaar) Rules for investing in penny stocks . Welcome, once again, to Uniply Industries Limited. Information on stock, financials, earnings, subsidiaries, investors, and executives for Uniply Industries. How to Identify Multibagger Stock? on February 4, 1997) Registered Office: 52, (Old No: 18), Harleys Road, Kilpauk, Chennai 600010, Tamilnadu Its authorized share capital is Rs. Please leave us your comments below. Uniply Industries was founded by B.L.Bengani and a group of professionals from the plywood industry, in 1996 and was later converted into a public limited Company on February 4,1997. Recent announcement (as on Jul 3, 2019) around significant stake sale by the current promoter (Keshav Kantamneni) to a Gulf based investment firm raises further suspicion. Uniply Industries: More Questions Than Answers? Uniply Industries Ltd #572, Anna Salai, Teynampet CHENNAI 600010 P: +9144.26605995 F: +9144.26602273 Uniply Industries Ltd. company facts, information and stock details by MarketWatch. 335,294,784. Its sale of plywood business to an associate company at a potentially discounted valuation raises suspicion. Creating environments where people love to be…. Despite all this capital raise and a significant chunk of business now coming from asset light and working capital light (as per management) construction business, why does the company continue to carry >300cr debt as of end of FY19 (176cr of which is long-term and has increased from 104cr at the end of FY18)? The name was subsequently changed to Uniply Industries Limited. Uniply is the leading Plywood Manufacturer brand in Chennai, Mumbai & all India providing best quality plywood in India. Further conversations with these dealers revealed that Uniply has no particular competitive advantage over other brands. Why did the company raise so much capital despite the management’s claim in its FY18 Annual report that “The Company does not expect to make any significant capex across the foreseeable future”? As the Uses of Capital table above reveals, the two big-ticket items where the capital has been used are “Loans Given” and “Working Capital”. To get a sense of the distribution network of Uniply, I called 25+ dealers across key markets for Uniply like Chennai, Chandigarh and Ahmedabad. High quantum of goodwill (81cr) recorded by post-transaction UV Boards relative to fixed assets of 39cr (post transaction), further attest the high premium paid by Uniply for increased stake in the post-transaction UV Boards entity, implying discounted valuation for the stake sale in plywood business of Uniply. It also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. Chennai-based premium plywood maker Uniply Industries Ltd is considering setting up a greenfield manufacturing plant in Chittoor district of Andhra Pradesh with an investment of Rs 35 crore. At the time of acquisition in 2015, Uniply TTM sales were about 170cr. Many other branded plywood companies are also offering termite-proof, water-resistant properties along with 20+ year guarantees. It also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. Caplin Point Laboratories has grown 10 times in short period of time. A close look at Uniply Industries raises more questions than answers. Uniply financial results, Uniply shareholding, Uniply annual reports, Uniply pledge, Uniply insider trading and compare with peer companies. Uniply Industries Ltd Live BSE Share Price today, Uniply latest news, 532646 announcements. Some real life examples are stocks like Indo Count Industries, Ram Minerals, Greencrest Finance, Arrow Coated, Marksans Pharma, Cupid Ltd, Kesar Petro, Uniply Industries, Pressman Advertising, NGL Fine Chemicals etc. It is worth to note that in last three years Uniply Industries has become multibagger stock from penny stock.Radhakishan Damani has made a huge monetary gain from his portfolio. At the time, it continued to be a pure-play plywood business with plans of the new management to grow the branded plywood business multi-fold. 1 was here. Of these investments, Uniply Decor has goodwill of 81cr, which adjusted for 37% stake is 30cr. At the time, it continued to be a pure-play plywood business with plans of the new management to grow the branded plywood business multi-fold. All in all, of the 615cr capital raised, direct investments for Uniply Industries have been only 318cr split as: Were it not for the loans given, these 318cr investments could have been potentially funded by internal accruals of >100cr as indicated by cashflow from operations ex working capital (adjusted for other miscellaneous cash outflows) over FY15-18 and some additional funding (~200cr) via debt/equity vs current capital raise of 615cr. Uniply, as you may know, is a company built on trust. In this video we will learn about Uniply Industries ltd share News Fundamental Analysis. De-growth in Vector’s Business: Going by FY19 results, Vector’s interiors business revenues declined to <270cr in FY19 vs about 320cr in FY18, despite management's strong expectations from this business. As of last trade, Uniply Industries Ltd (UNIPLY:NSI) traded at 3.75, 11.94% above the 52 week low of 3.35 set on Oct 20, 2020. The cash flow movements at Uniply Industries reveal that since the new management took over, only a part of the investor capital raised has gone into real assets owned by Uniply Industries. Rest of it has been diverted to either promoter’s other business entities, suggesting potential conflicts of interest, or have been consumed for high working capital requirements, potentially suggesting weak quality of sales.Over the past four years through FY18, management has raised 615cr, 335cr from issuance of equity/warrants and the rest 280cr (split as 57.5cr: long-term + 160.5cr: short-term + 62.6cr: debentures) from debt. Other stocks in this category are Uniply Industries, Page Industries, Ajanta Pharma, Tata Metaliks etc. From its inception to 2014, it increased its reach to north and west India from south India. This is in line with my channel checks regarding Uniply’s on-ground presence. 650,000,000 and its paid up capital is Rs. 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