18 June 2014
Tribhovandas Bhimji Zaveri
spotlight
The Idea Junction
Stock Info
Bloomberg
CMP (INR)
Equity Shares (m)
M.Cap. (INR b)/(USD b)
52-Week Range (INR)
1,6,12 Rel. Perf. (%)
TBZL IN
202.0
66.7
14.3/0.2
224/116
34/36/-32
Emerging branded retail jewelry play
Drivers: Demand revival, regulatory easing, geographic expansion
Financials & Valuation (INR b)
Y/E March
Sales
YoY (%)
EBITDA
Margins (%)
PAT
EPS
Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
EV/EBITDA (x)
EV/Sales (x)
Dividend (%)
2015E 2016E 2017E
20.7
13.8
1.5
7.3
0.8
11.8
42.4
7.9
16.1
17.8
17.1
25.6
12.0
0.9
1.2
28.4
37.4
2.2
7.6
1.1
17.1
45.7
9.2
20.0
21.1
11.8
21.8
8.6
0.7
1.5
37.9
33.3
2.9
7.6
1.6
23.3
36.2
11.2
22.8
21.7
8.6
18.0
7.2
0.5
1.5
Demand at the cusp of turnaround:
After a dismal FY14, owing to weak
discretionary consumption and regulatory challenges, demand is at the cusp
of a turnaround and should pick up in 2Q/3QFY15. Post elections, management
believes that the 'feel good' factor has set in and the full impact will be visible
in six months.
Store count and area to nearly double in FY14-17:
TBZL added only two stores
in FY14 due to weak demand and ban on 'gold on lease' scheme, which
necessitate higher working capital requirement. For FY15, TBZL has guided
addition of three stores and could accelerate expansion if demand revives. It
is also evaluating the franchisee route for expansion and has appointed a
consultant to carry out the initial due diligence. According to the management,
initial plans of having 57 stores and 150ksf of space by FY15 may now be
realized in FY17. We model 50 stores and 157ksf of space by FY17.
Focus on studded jewelry to drive margin expansion:
TBZL's sales mix has
deteriorated in the last two years and now comprises of 77% gold jewelry and
21% diamond (25% in FY12).This, coupled with promotions and discounts, resulted
in margin contraction of 170bp over FY12-14. TBZL plans to aggressively market
diamond jewelry, as gross margins in diamond jewelry (35%) are 3x those in gold
jewelry (11-12%). We expect margin expansion of 70bp over FY14-17.
Removal of ban on 'gold on lease' to improve operations:
RBI lifted the ban on
'gold on lease' in May 2014. This should help players like TBZL to undertake
expansion plans without straining their balance sheets. Currently, TBZL
procures 25% of its gold requirement from SBI deposit scheme, 30% from
exchange of old jewelry, 5% from its own gold deposit scheme and 40% from
bullion dealers. To comply with the new Companies Act, it has suspended its
12-month+ customer advance scheme and now operates a 10+1 month scheme.
Strong brand legacy; 41% FY14-17 EPS CAGR; 8.6x FY17 P/E:
TBZL long-
established presence in West and South India, strong brand legacy, and in-
house design and manufacturing capabilities are its key strengths. We expect
the company to post 41% PAT CAGR over FY14-17. RoE, which has declined
from 43% to 13% in two years, is likely to expand to 23% by FY17. We believe
valuations are attractive, given TBZL trades at 11.8x/8.6x FY16E/FY17E.
Shareholding pattern (%)
As on
Mar-14 Dec-13 Mar-13
Promoter
74.2
74.1
74.1
FII
15.2
15.0
14.6
Others
10.6
10.9
11.3
Stock performance (1 year)
Spotlight
is a new offering from the Research team at Motilal Oswal. While our Coverage Universe
is a wide representation of investment opportunities in India, there are many emerging names in the
Mid Cap Universe that are not under coverage. Spotlight is an attempt to feature such mid cap stocks
by visiting such companies. We are not including these stocks under our active coverage at this point
in time. Motilal Oswal Research may or may not follow up on stocks under Spotlight.
Gautam Duggad
(Gautam.Duggad@MotilalOswal.com); +91 22 3982 5404
Manish Poddar
(Manish.Poddar@MotilalOswal.com); +91 22 3027 8029
Investors are advised to refer through disclosures made at the end of the Research Report.
RED: Caution
AMBER: In transition
GREEN: Interesting
1

Spotlight
| Tribhovandas Bhimji Zaveri
150-year old brand; transforming into nationwide jewelry retailer
TBZL, a 150-year old brand, is transforming itself into a national jewelry retailer, with 27
showrooms in 21 cities across six states and a carpet area of 88,093sf. Its flagship
showroom, which accounted for ~10% of FY14 revenue, is located at Zaveri Bazaar,
Mumbai. Top 5 stores contributed about ~34% of FY14 revenues (vs. 42% in FY13).
TBZL mainly sells gold and diamond jewelry. Gold jewelry contributes ~77% of its
revenue, while diamond jewelry contributes ~21%. It also sells platinum jewelry, jadau
jewelry, and silverware and gold coins.
TBZL has its own manufacturing facility in Mumbai, with an annual gold refining capacity
of 4,000kg, gold jewelry components capacity of 4,500kg, and diamond jewelry capacity
of 200,000cts. It manufactures diamond jewelry at its facility in Mumbai, and outsources
gold jewelry from 150 third-party manufacturers.
In addition to jewelry designs from different parts of India, TBZL also offers a wide range
of jewelry from Italy and Turkey.
Of the 27 showrooms it operates, 21 are large format stores, with a carpet area of over
3,000sf, while six are small format stores, with an area of 1,000-3,000sf.
TBZL has set up strong systems and processes, with oracle inventory management and a
team of 32 designers, to maintain its competitive edge.
Exhibit 1: Store count has doubled in two years
No of Retail Outlets
25
27
13
6
8
14
14
14
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Source: Company, MOSL
Exhibit 2: Total operational area doubled in three years
Carpet Area ('000 sf)
Exhibit 3: TBZ has expanded presence to 8 states
No of Cities
20
13
10
5
6
6
7
7
15
8
8
8
No of States
21
20
21
21
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Source: Company, MOSL
Source: Company, MOSL
18 June 2014
2

Spotlight
| Tribhovandas Bhimji Zaveri
Regulatory challenges receding
Discretionary demand has been subdued due to muted economic growth and rising cost
of living. While macro concerns persist, improvement in urban consumer sentiment
following the 2014 general elections could provide a fillip to jewelry demand.
The government had initiated various measures to control current account deficit (CAD)
by reducing gold imports.
Hiked import duty from 2% to 10% in 18 months (January 2012 – August 2013)
Banned import of gold coins and bars
Discontinued gold loan model, with no credit terms allowed in any form for gold
imports.
Introduced 80:20 import-export scheme, restricting supply of gold for domestic
consumption, resulting in higher premium on gold supply.
Due to stringent regulatory measures, coupled with underlying demand softness, TBZL’s
RoE has contracted from 43% in FY12 to 13% in FY14.
Exhibit 4: Post contraction over FY11-14, expect RoE to expand
46.0
RoE (%)
42.9
29.9
16.1
20.0
22.8
12.8
2011
2012
2013
2014
2015E
2016E
2017E
Source: MOSL, Company
In the last 2-3 quarters, India’s CAD has come under control and regulations are easing.
The RBI has allowed more entities to import gold under the 80:20 scheme, easing the
supply crunch and premiums on gold. It has also removed the ban on gold metal loans, a
low cost inventory funding mechanism for jewelers, with a natural hedge.
Media reports suggest that the government will lower import duties on gold in Budget
2014 and further ease the gold import norms.
Currently, TBZL sources ~25% of its gold through SBI (limited to TBZL’s working capital
limit) and ~30% by way of exchange of old jewelry. It purchases the remaining 40% on
spot basis from bullion dealers. Due to the above regulations, gold was trading at a
premium of USD80 per ounce to the open market price. With more entities allowed to
import gold under the 80:20 scheme, the premium is reduced to USD25-30 per ounce.
18 June 2014
3

Spotlight
| Tribhovandas Bhimji Zaveri
Play on fast growing branded jewelry segment
The Indian jewelry market, estimated at ~INR3t, is expected to grow at 16.3% CAGR over
2012-17 (Source: Ministry of Commerce). The industry is dominated by unorganized
players, who still account for ~82% of the market.
TBZL is mainly focused on West and South India, which account for ~65% of total
demand. We note that most of its expansion is planned in these regions.
It has built strong presence in Wedding Jewelry market which drives 50% of annual gold
demand in India.
TBZL’s current sales mix comprises of ~77% gold jewelry and 21% diamond jewelry.
Titan, the largest branded jewelry player, derives ~28% of its jewelry revenues from
Studded segment.
Exhibit 5: Jewelry volumes have been subdued over FY12-14
Gold ('000 kgs)
52.0
35.4
41.7
43.2
Diamond ('000 cts)
48.7
43.8
Exhibit 6: Sales mix has tilted in favor of plain gold jewelry
Gold (%)
23
22
22
Diamond (%)
25
23
21
72
3.5
FY09
3.8
FY10
4.1
FY11
3.7
FY12
3.7
FY13
4.4
FY14
FY09
73
73
72
75
77
FY10
FY11
FY12
FY13
FY14
Source: Company, MOSL
Source: Company, MOSL
TBZL is aggressively marketing diamond jewelry, as gross margins (~35%) are much
higher than in gold jewelry (11%). For example in 4Q14, it ran a scheme of 3-4% off on
MRP of Diamond jewelry to boost studded salience.
However, slowdown in discretionary consumption impacted the shift towards studded
jewelry in FY13 and FY14.
TBZL plans to drive studded jewelry sales through promotions/discounts and aims to
increase the salience of diamond jewelry by 100-150bp per year.
Exhibit 7: TBZ: Diamond gross margins 3x of Gold gross margins
Source: Company, MOSL
18 June 2014
4

Spotlight
| Tribhovandas Bhimji Zaveri
Calibrated expansion plans; demand revival to accelerate pace of expansion
TBZL has opened 13 new stores since its IPO, with 11 stores added in FY13 and two
stores added in FY14.
Earlier, it had plans to increase its presence from 27 stores to 57 stores by FY15.
However, given the lackluster demand in FY14 and ban on ‘gold on lease’, which
increased working capital requirement, TBZL opened only two stores in FY14. It now
expects to achieve the target of 150ksf retail space by FY17 instead of the earlier
articulated FY15.
In our recent interaction, the management iterated its plan to add 30 stores over FY14-
17 and reach its target of 150ksf retail space by FY17.
Post the 2014 general elections, TBZL has seen increase in footfalls and the management
expects demand to improve further over the next two quarters. It could accelerate its
expansion plans, given the demand improvement. With the return of ‘gold on lease’
scheme (TBZL is availing the same from Nova Scotia at 6.5%), we expect TBZL to pursue
expansion with aggression.
Exhibit 8: Stores concentrated in South & West
Store No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Location
Zaveri Bazaar, Mumbai
Panjagutta, Hyderabad
Borivali, Mumbai
Ghatkopar, Mumbai
Santacruz, Mumbai
Thane, Mumbai
Surat, Gujarat
Vijayawada, Andhra Pradesh
Ahmedabad, Gujarat
Indore, Madhya Pradesh
Kochi, Kerala
Pune
Basheerbagh, Hyderabad
Rajkot, Gujarat
Churchgate, Mumbai
Vadodara, Gujarat
Camac Street, Kolkata
Kakurgachi, Kolkata
Vapi, Gujarat
Bhavnagar, Gujarat
Vasai, Maharashtra
Nagpur
Aurangabad
Raipur
Vashi
Gandhidham, Gujarat
Udaipur, Rajasthan
Total showroom space
Opening month
Feb-1905
Oct-01
May-03
Oct-04
Sep-06
Aug-07
Dec-07
May-08
May-08
Jun-08
Aug-08
Apr-12
Oct-09
Jul-11
Jul-12
Aug-12
Sep-12
Sep-12
Sep-12
Dec-12
Dec-12
Jan-13
Jan-13
Mar-13
Mar-13
Apr-13
Oct-13
Carpet area (sf)
5,809
5,101
4,314
1,808
4,050
3,441
2,790
2,342
4,925
4,025
3,250
3,059
1,670
3,250
1,230
3,750
5,000
3,200
2,158
2,400
1,500
2,624
4,789
2,900
2,984
2,100
3,600
88,068
Source: Company, MOSL
Cities
Mumbai
Hyderabad
Mumbai
Mumbai
Mumbai
Thane
Surat
Vijaywada
Ahmedabad
Indore
Kochi
Pune
Hyderabad
Rajkot
Mumbai
Vadodara
Kolkata
Kolkata
Vapi
Bhavnagar
Vasai-Virar
Nagpur
Aurangabad
Raipur
Navi Mumbai
Gandhidham
Udaipur
18 June 2014
5

Spotlight
| Tribhovandas Bhimji Zaveri
Exhibit 9: TBZ expanding its geographical footprint
TBZL’s present across
21 cities in 8 states
Source: Company, MOSL
We expect this expansion to drive the expected 28% sales CAGR over FY14-17. TBZL is
first consolidating its presence in existing geographies in South and West India, before
expanding in other markets. We model addition of three stores in FY15, and 10 each in
FY16 and FY17. Of the planned 23 store openings, we believe 17 would be large format
and 6 would be small format stores.
Exhibit 10: Store metrics: store count expected to nearly double in three years
No of Retail Outlets
Large Format
Small Format
Carpet Area (‘000 sf)
FY11
14
10
4
44.2
FY12
14
10
4
47.8
FY13
25
20
5
82.4
FY14
27
21
6
88.1
FY15E
30
24
6
97.1
FY16E
FY17E
40
50
31
38
9
12
127.1
157.1
Source: Company, MOSL
18 June 2014
6

Spotlight
| Tribhovandas Bhimji Zaveri
Focus on studded jewelry to improve margins
TBZL has a clear focus on improving its margin profile by driving diamond studded
jewelry sales. Diamond jewelry enjoys gross margins of 35% against the 11-12% enjoyed
by gold jewelry.
In FY14, TBZL reported gross margins of 33.6% on its diamond jewelry sales and 12.2%
on its gold jewelry sales, down 160bp and 100bp, respectively. The margin decline was
owing to slowdown in discretionary consumption, low same store sales (SSS) growth,
and higher discounts.
Exhibit 11: Trend in segment wise margins (%)
Gross margins
Gold GM
Diamond GM
FY12
10.9
35.9
1QFY13
14.3
39.4
2QFY13
12.9
34.8
3QFY13
11.7
33.7
4QFY13
14.5
34.3
FY13
13.2
35.2
1QFY14
11.7
33.1
2QFY14
12.6
33.9
3QFY14
4QFY14
FY14
14.1
10.3
12.2
33.4
33.4
33.6
Source: Company, MOSL
TBZL’s plans to boost diamond jewelry sales include: (1) investments in advertising
behind diamond studded jewelry, (2) promotion schemes for diamond jewelry (diamond
bangle
mela),
(3) new launches straddling price points to entice even entry-level buyers
and (4) cross-selling of diamond jewelry to gold jewelry customers.
TBZL aims to expand the salience of diamond jewelry by 100-150bp per annum.
We expect TBZL’s operating margin to expand 70bp over FY14-17 to 7.6%. The margin
expansion could be much higher if demand improvement is higher than expected, given
operating leverage. TBZL’s operating margin in FY12 was 8.6%.
Customer advance scheme repackaged
Like other jewelers, TBZL uses customer advance installment schemes to secure working
capital as well as captive customer base.
The scheme involves advance payments by customers through the plan period (10
months). At the end of the plan period, TBZL contributes an additional amount (equal to
1 month EMI) as bonus. To avail the additional benefit, the participant needs to buy
jewelry from TBZL within three months of the maturity of the plan.
As at March 2014, advances under this scheme were INR1.5b, up 49% YoY.
TBZL has temporarily suspended buying under the Gold Plan scheme to comply with the
new Companies Act. The Act stipulates that customer advances offering returns are
classified as deposits. For such deposits, returns cannot exceed 12% and total deposits
should be lower than 1/4 of the net worth.
th
Most jewelers have suspended this scheme. TBZL has suspended plans with maturity
period exceeding 12 months. It now operates an 11-month scheme (10+1). According to
the management, this scheme is legally sound. In the worst case scenario, it does not
expect any major impact on its financials; as such schemes contribute just 6-8% of its
revenues versus 15-20% for Titan.
Exhibit 12: Details of Kalpavruskha plan
Members
% of Sales
Advance form Customers (in INR b)
FY11
16,028
1%
0.4
FY12
18,154
3%
0.5
FY13
FY14
28,743
33,985
7%
8%
1.0
1.5
Source: Company, MOSL
18 June 2014
7

Spotlight
| Tribhovandas Bhimji Zaveri
Exhibit 13: TBZL: SWOT analysis
i.
ii.
iii.
iv.
i.
ii.
Strengths
1.5 century of experience in jewelry retail in India.
Strong brand equity (reflected in high conversion
rate - 76%)
In house manufacturing facility & design exclusive
tie ups.
Experienced Management Team.
Opportunity
India offers a vast scope for expansion, given its
high appetite for jewelry.
Organized jewelry retail is relatively low at 15%,
offers vast scope expansion for players like TBZL.
i.
ii.
Weakness
High WC intensive business model in absence of Gold on Lease
Regional presence of TBZ
Threats
i.
ii.
Competition from national players like Tanishq and regional players like
PC Jewellers, Joyalukkas, Thangmayil Jewellers is on a rise.
Unorganized nature of the industry, poses stiff competition for the
company.
Source: Company, MOSL
Expect expansion-led growth; estimate 41% PAT CAGR over FY14-17
We factor in 23 store openings by FY17, with three additions in FY15 and 10 each in
FY16 and FY17. We estimate 50 stores and a total carpet area of 157ksf, with presence
across 14 states.
Exhibit 14: Revenue productivity has deteriorated over FY12-14
Revenue/avg sq ft (INR '000/sq ft)
301
270
169
184
192
204
255
214
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Source: Company, MOSL
The company intends to increase same showroom sales (SSS), with continuous
investments behind marketing initiatives – organizing events, participation in
exhibitions, advertising and launching new product lines – to increase footfalls.
To maintain high conversion rate, TBZL stocks a wide range of jewelry across price points
and equips its staff with appropriate product knowledge. This helps the staff to ‘upsell’
or sell complementary products, increasing ticket size.
Exhibit 15: Same store sales performance muted
Gold (INR b)
10.5
-9.5%
Diamond (INR b)
9.5
Exhibit 16: Average ticket size expanded for Gold in FY14
Gold (INR in '000)
Diamond (INR in '000)
3.2
-15.6%
2.7
FY13
FY14
Source: Company, MOSL
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Source: Company, MOSL
8
18 June 2014

Spotlight
| Tribhovandas Bhimji Zaveri
Exhibit 17: TBZ’s operational space to expand ~70% in 3 years Exhibit 18: Footfalls improved but conversion dipped
Carpet Area ('000 sf)
157.1
127.1
97.1
82.4 88.1
20.7 27.0
42.5 44.2 44.2 47.8
237
77.5
256
76.7
Footfalls ('000)
Conversion
FY13
Source: Company, MOSL
FY14
Source: Company, MOSL
EBITDA margins declined 150bp in FY14 due to slower demand, higher discounts and
weak operating leverage. With the expected uptick in demand, we estimate EBITDA
margin at 7.3% (40bp expansion) for FY15 and 7.6% for FY16 and FY17.
With resumption of ‘gold on lease’, we expect interest cost to stabilize at INR300m-
400m for FY15 and FY16. Due to ban on ‘gold on lease’, interest expenses had more than
doubled to INR463m in FY14.
TBZL posted 20% revenue and 39% PAT CAGR over FY10-14, as most of its stores were
mature and gold prices soared during this period. We estimate 41% PAT CAGR over
FY14-17, with FY15 PAT growth at 42%, aided by lower base (PAT had declined 35% in
FY14), improved demand and better operating leverage.
Exhibit 19: Expect revenue momentum to pick up in FY16
Sales (INR b)
34.9
19.5
10.2
13.8
Sales growth (%)
37.4
Exhibit 20: EBITDA impacted by lack of operating leverage
EBITDA (INR b)
EBITDA growth (%)
84.2
43.6
16.8
-8.9
18.9
33.3
15.6
36.6
33.5
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 21: Sharp margin contraction in FY14; modest
recovery expected
Gross Margin (%)
18.3
15.7
8.6
8.4
18.4
16.6
EBITDA Margin (%)
17.0
17.0
16.9
Exhibit 22: PAT down 35% in FY14; expect 40%+ PAT CAGR
over FY14-17
177.0
PAT (INR b)
PAT growth (%)
7.3
6.9
7.3
7.6
7.6
41.7
48.8
-35.4
42.4
45.7
36.2
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
FY11
FY12
FY13
FY14
FY15E
FY16E
FY17E
Source: Company, MOSL
Source: Company, MOSL
18 June 2014
9

Spotlight
| Tribhovandas Bhimji Zaveri
Valuations and view: Strong brand, pure jewelry retail model
TBZL has a strong brand, which it could leverage to expand its scale of operations in the
fast-growing branded jewelry market.
TBZL is a pure jewelry retailer. Most other listed jewelry companies are mainly
exporters. The stock trades at 11.8x FY16E and 8.6x FY17E EPS. We believe valuations
are attractive for a pure jewelry retailer.
Not Rated.
Risks and concerns:
Sharp correction in gold prices: Gold Demand can be adversely affected by high
volatility in gold prices. Also, in the event of major correction in gold prices, it can
impact revenues if not sufficiently compensated by higher volumes.
Execution risk: Risks related to TBZ’s expansion plans
.
Shift towards other asset classes: given the buoyancy in equity markets, shift from
gold towards other financial assets can impact jewellery revenue growth of branded
retailers.
Exhibit 23: Jewelery Peer Comparison (INR m)
Titan
FY14
Sales
Sales Growth (%)
EBITDA
EBITDA Growth (%)
EBITDA Margin (%)
PAT
PAT Growth (%)
RoE
P/E
P/BV
EV/EBITDA
108,739
8.1
10,236
7.1
9.4
7,666
5.7
31.1
36.4
11.3
27.0
FY15E
124,316
14.3
12,156
18.8
9.8
8,740
14.0
28.4
31.9
9.1
23.5
FY16E
146,625
17.9
14,740
21.3
10.1
10,527
20.5
27.6
26.5
7.3
19.0
PC Jewellers
FY14
50,495
25.7
5,846
21.3
11.6
3,288
13.0
20.9
5.9
1.4
4.5
FY15E
58596
16.0
6496
11.1
11.1
3367
2.4
17.2
5.9
1.2
4.0
FY16E
66,050
12.7
7,573
16.6
11.5
3,827
13.7
15.8
5.2
1.0
FY14
18,177
10.2
1,261
-8.9
6.9
551
-35.4
12.8
24.4
30.0
TBZ
FY15E
20,683
13.8
1,500
18.9
7.3
784
42.4
16.1
17.1
25.6
FY16E
28,421
37.4
2,154
43.6
7.6
1,142
45.7
20.0
11.8
21.8
3.5
14.5
12.0
8.6
Source: Company, MOSL, Bloomberg
18 June 2014
10

Spotlight
| Tribhovandas Bhimji Zaveri
Exhibit 24: Board of directors
Name
Shrikant Zaveri
Binaisha Zaveri
Designation
Chairman & Managing Director
Whole-time Director
i.
Description
More than 31 years of experience in the gems and jewelry industry.
Founding member and chairman of the Gems and Jewelry Trade Federation
She is involved in all aspects of the business including human capital
management, operations, finance, business development, marketing and
merchandising
She is involved in implementation of the Company’s ERP systems and is
actively engaged in accounting, merchandising and general corporate
management.
Member of the audit advisory committee of the United Nations
Development Programme (UNDP)
Member of the appellate authority of the Institute of Chartered
Accountants of India (ICAI) and a past president of ICAI.
Over 25 years of experience with chemical, petrochemical, fertilizer,
manufacturing and investment companies
Currently the Managing Director of Deepak Nitrate Limited
Member of the executive committee of Maharashta Chamber of
Commerce, Industries and Agriculture
Member of the governing council committee of National Agriculture and
Food Analysis and Research Institute.
Over 22 years of experience in the field of law and corporate matters
He is presently a partner at Crawford Bayley and Co., and deals with
corporate laws and laws of mergers and acquisitions.
Source: Company, MOSL
ii.
i.
Raashi Zaveri
Whole-time Director
i
Kamlesh Vikamsey
Independent Director
i
ii.
Ajay Mehta
Independent Director
i.
ii.
iii.
iv.
Sanjay Asher
Independent Director
i.
ii.
Exhibit 25: Shareholding pattern (%)
Promoter
DII
FII
Non Institutions
Bodies Corporate
Individuals upto 1 lakh
Individuals above 1 lakh
Others
May-12
74.1
3.1
11.8
10.8
4.1
5.4
1.2
0.0
Mar-13
74.1
0.0
13.8
11.9
4.6
2.1
4.7
0.4
Dec-14
Mar-14
74.1
74.2
0.0
0.0
15.0
15.2
10.8
10.6
5.1
4.6
2.8
3.1
2.5
2.7
0.4
0.3
Source: Company, MOSL
18 June 2014
11

Spotlight
| Tribhovandas Bhimji Zaveri
Financials and valuations
Income Statement (INR Million)
Y/E March
Net Sales
Change (%)
COGS
Gross Profit
Gross Margin (%)
Operating expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Financial Other Income
Profit before Taxes
Change (%)
Margin (%)
Tax
Tax Rate (%)
Adjusted PAT
Change (%)
Margin (%)
Reported PAT
2012
13,804
15.6
11,280
2,524
18.3
1,339
1,185
36.6
8.6
55
315
56
871
44.1
6.3
315
36.2
573
41.7
4.1
573
2013
16,494
19.5
13,463
3,031
18.4
1,646
1,385
16.8
8.4
80
215
148
1,237
42.0
7.5
386
31.2
852
48.8
5.2
850
2014
18,177
10.2
15,159
3,019
16.6
1,758
1,261
-8.9
6.9
100
463
132
830
-32.9
4.6
279
33.7
551
-35.4
3.0
551
2015E
20,683
13.8
17,161
3,522
17.0
2,022
1,500
18.9
7.3
144
313
145
1,188
43.1
5.7
404
34.0
784
42.4
3.8
784
2016E
28,421
37.4
23,594
4,828
17.0
2,674
2,154
43.6
7.6
162
418
171
1,744
46.8
6.1
602
34.5
1,142
45.7
4.0
1,142
2017E
37,895
33.3
31,475
6,420
16.9
3,546
2,875
33.5
7.6
192
536
227
2,374
36.2
6.3
819
34.5
1,555
36.2
4.1
1,555
Balance sheet (INR Million)
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Liability
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Intangible Assets
Capital WIP
Investments
Lease Deposits
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Application of Funds
Source: MOSL Estimates
2012
500
1,100
1,600
2,078
-34
3,644
645
154
491
19
7
1
65
5,218
5,019
31
64
103
2,156
864
1,034
258
3,061
3,644
2013
667
3,432
4,099
4,195
-16
8,278
1,089
224
865
35
16
1
103
10,772
10,255
18
326
173
3,513
1,694
1,487
332
7,258
8,278
2014
667
3,807
4,474
5,634
-72
10,037
1,269
324
945
20
16
1
0
12,108
11,106
29
739
234
3,053
791
1,987
275
9,055
10,037
2015E
667
4,577
5,244
4,806
0
10,051
1,342
468
874
20
54
1
0
13,162
12,633
57
207
266
4,060
1,410
2,162
488
9,102
10,051
2016E
667
5,485
6,152
5,647
0
11,799
1,612
630
982
20
45
1
0
16,331
15,376
117
480
358
5,579
1,939
2,971
668
10,752
11,799
2017E
667
6,806
7,473
7,742
0
15,215
1,882
822
1,060
20
45
1
0
21,460
20,259
156
575
470
7,370
2,587
3,962
821
14,090
15,215
18 June 2014
12

Spotlight
| Tribhovandas Bhimji Zaveri
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2012
11.5
10.3
3.2
1.2
10.2
2013
12.8
11.6
6.1
1.5
11.4
2014
8.3
6.8
6.7
1.5
18.2
24.4
29.8
1.0
14.5
30.0
0.7
42.9
35.6
2.5
3.9
0.8
29.9
19.5
1.0
2.0
1.0
12.8
14.9
1.0
1.8
0.8
2015E
11.8
9.6
7.9
2.5
21.3
17.1
21.0
0.9
12.0
25.6
1.2
16.1
17.8
1.0
2.1
1.1
2016E
17.1
14.7
9.2
3.0
17.5
11.8
13.7
0.7
8.6
21.8
1.5
20.0
21.1
1.5
2.4
1.1
2017E
23.3
20.4
11.2
3.0
12.9
8.6
9.9
0.5
7.2
18.0
1.5
22.8
21.7
1.5
2.5
1.0
Cash Flow Statement (INR Million)
Y/E March
PBT before EO items
Add : Depreciation
Interest
Less : Direct taxes paid
Inc in WC
CF from Operations
Incr in FA
Lease Deposits
Pur of Investments
CF from Invest.
Issue of cap
Inc in debt
Less : Interest paid
Dividend paid
Others
CF from fin. activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
Source: MOSL Estimates
2012
871
55
315
315
505
422
51
-20
-29
2
0
-53
315
0
-76
-444
-26
91
64
2013
1,237
80
215
386
3,898
-2,750
469
38
0
507
1,836
2,117
215
68
-113
3,557
262
64
326
2014
830
100
463
279
1,424
-310
165
-103
0
62
0
1,440
463
113
-119
744
412
326
738
2015E
1,188
144
313
404
578
662
111
0
0
111
0
-828
313
117
176
-1,084
-531
738
207
2016E
1,744
162
418
602
1,377
346
261
0
0
261
0
841
418
195
-39
188
273
207
480
2017E
2,374
192
536
819
3,243
-961
270
0
0
270
0
2,095
536
234
0
1,325
95
480
575
18 June 2014
13

Disclosures
Spotlight
| Tribhovandas Bhimji Zaveri
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18 June 2014
14