Most offices are designed around functional comfort and not business agility. 572, Anna Salai, Teynampet, Chennai - 600 018. Uniply was founded in 1996 by a team of professionals from Kitply and Greenply. About Uniply Ind. 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. Read more about Uniply plans manufacturing plant in AP on Business Standard. 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. In 2015, Mr Keshav Kantamneni acquired a stake in Uniply after which Uniply went through two years of business restructuring, asset acquisition, capacity expansion, and mergers. Information on stock, financials, earnings, subsidiaries, investors, and executives for Uniply Industries. 94cr EV/750cr potential sales) if one takes the full revenue potential of the Plywood business (>1000cr revenue potential at full capacity, as per management; we are assuming 75% capacity utilization implying 750cr revenue potential). Most designers respond with a ‘make do’ approach, resulting in a widening gap between what is needed and what is provided. 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. YELLOWSTONE EQUITY | Ankit Agrawal | SEBI Registered Analyst (INH000007216), Net investments of 49cr in fixed assets: Purchase of 57cr of fixed assets, offset partially by sale of 8cr of fixed assets. Below table details our view of the economic value obtained for the effective 63% stake sale in the plywood business. A close look at Uniply Industries raises more questions than answers. Posts tagged Uniply Industries. 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. 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. 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 manufactures and sells plywood in India and internationally. 1 was here. Uniply financial results, Uniply shareholding, Uniply annual reports, Uniply pledge, Uniply insider trading and compare with peer companies. Uniply Industries Ltd tumbled 19.98% to Rs 33.65 at 14:30 IST.The stock was the biggest loser in the BSE's 'B' group.On the BSE, 1.33 lakh shares were traded on the counter so far as against the average daily volumes of 14657 shares in the past one month. As per below, the transaction happened at 0.60x EV/FY19Sales (i.e. A Multibagger Stock? Many other branded plywood companies are also offering termite-proof, water-resistant properties along with 20+ year guarantees. ... A multibagger plunges 10% in a day! 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? Uniply Industries Ltd (UNIPLY:NSI) forecasts: consensus recommendations, research reports, share price forecasts, dividends, and earning history and estimates. Uniply Industries Ltd is an organization that resonates the sound of success in the plywood industry through its high quality products. Uniply Industries Ltd. | 508 followers on LinkedIn. Later on in 2016, the company diversified into the interior fittings business through acquisition of a company named Vector Projects ("Vector"). Uniply Industries: More Questions Than Answers? Uniply Industries Ltd. company facts, information and stock details by MarketWatch. Uniply Industries Ltd #572, Anna Salai, Teynampet CHENNAI 600010 P: +9144.26605995 F: +9144.26602273 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. INDIA. Caplin Point Laboratories is an example of multibagger stock. Slump Sale of Plywood Business at a Potentially Discounted Valuation, Excerpt from Uniply's filing for Slump Sale Transaction Announcement, Suspicious Cash Flow Trail at Uniply Industries. on February 4, 1997) Registered Office: 52, (Old No: 18), Harleys Road, Kilpauk, Chennai 600010, Tamilnadu I invite you to experience the products and solutions that we have on offer. Uniply Industries Limited is a Public incorporated on 04 September 1996. Use the PitchBook Platform to explore the full profile. Penny stocks can be quality stocks (Penny Stocks with high trading | Midcap Bazaar) Rules for investing in penny stocks . Of these investments, Uniply Decor has goodwill of 81cr, which adjusted for 37% stake is 30cr. In this video we will learn about Uniply Industries ltd share News Fundamental Analysis. In Aug 2017, Uniply announced a transaction to sale it plywood business to an associate, UV Boards (renamed to "Uniply Decor" post transaction), in exchange for purchase of additional ~29% stake in UV Boards (Uniply already owned ~8%, so post transaction its stake would increase to ~37%) through preferential allotment along with other deal considerations as in the below excerpt. 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. In FY17, advertisement expenses were as low as <4 lakhs. Uniply Industries Ltd. manufactures and sells plywood in India and internationally. "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". Most of us live largely the same way we have for years. "We plan to have a manufacturing plant in Andhra as and Welcome, once again, to Uniply Industries Limited. At the time of acquisition in 2015, Uniply TTM sales were about 170cr. While the subject of aesthetics can indeed be debated – one’s man’s nectar is another’s poison – where most Indian homes do fall short is in not being able to keep up with growing standards of product hygiene and environment consciousness related to interior infrastructure products. The stock of Uniply Industries purchased by R K Damani has given him multibagger return of 159% in 2016-17. 335,294,784. 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. The cash flow movements at Uniply Industries reveal that since the new management took over in 2015, only a part of the investor capital raised has gone into real assets owned by Uniply Industries. Even when Mudar Patherya is recommending a buy of penny stocks, he ensures that they are strong from a fundamental and technical perspective It also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. 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)? View Uniply Industries Ltd board meeting announcement date, date of Meeting and purpose of meeting Uniply Industries Ltd. manufactures and sells plywood in India and internationally. Hello and Welcome to all. Uniply Industries Ltd. manufactures and sells plywood in India and internationally. Even as the disposable incomes of most Indians have increased substantially over the years, our residential standards have not. Let us take a closer look at each of them. Welcome to Uniply Industries Limited. UNIPLY INDUSTRIES LIMITED (Originally Incorporated on September 4, 1996 as Uniply Industries Private Limited under the Companies Act, 1956. 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. View 532646 business summary and other industry information. 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. As of end of FY19, excluding sales to Vector which is a B2B business, plywood businessâ B2C revenues were <100cr, significantly lower than that in 2015. Incremental working capital of 165cr as discussed above. When we acquired Uniply, we did so not merely to capture a fleeting arbitrage opportunity that would have required us to play the game better; we did so with the objective to transform the game itself. The reality with Indian residences is no different. It is classified as Non-govt company and is registered at Registrar of Companies, Chennai. Uniply Industries Ltd. () Stock Market info Recommendations: Buy or sell Uniply Industries stock? The name was subsequently changed to Uniply Industries Limited. We did so because we are convinced that there is a widening gap between the interior standards of developed countries and India. 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 Industries Ltd Live BSE Share Price today, Uniply latest news, 532646 announcements. Uniply, as you may know, is a company built on trust. They are looking for multibagger penny stocks to buy in 2017 which can be held till 2020 for enormous gains. 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. This compares to a valuation of 2x EV/FY19Sales for Greenply and CenturyPly around Aug 2017 when this slump sale transaction was announced. 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). Over the past three years, we have reinvented this Company from a pure play single material (plywood) manufacturer, into a one stop building solutions provider for customers seeking to create world class offices and homes. Mudar Patherya is a veteran stock picker on the BSE and NSE and a specialist in penny stocks and micro-cap stocks. Please leave us your comments below. Uniply is the leading Plywood Manufacturer brand in Chennai, Mumbai & all India providing best quality plywood in India. Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium natuserror sit. 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 Industriesâ erstwhile plywood business was valued at just 58cr, despite post-transaction UV Boards business comprising primarily of Uniply Industriesâ erstwhile plywood business? This is in line with my channel checks regarding Uniplyâs on-ground presence. As the Uses of Capital table above reveals, the two big-ticket items where the capital has been used are âLoans Givenâ and âWorking Capitalâ. 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. Investors with a short-term horizon can buy the stock of Uniply Industries at current levels. 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. De-growth in Vectorâs Business: Going by FY19 results, Vectorâs interiors business revenues declined to <270cr in FY19 vs about 320cr in FY18, despite management's strong expectations from this business. Rest of it seems to have been diverted to either promoterâs other business entities, suggesting potential conflicts of interest, or have been consumed for high working capital requirements, suggesting potential weak quality of sales. From its inception to 2014, it increased its reach to north and west India from south India. 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. It also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. Other stocks in this category are Uniply Industries, Page Industries, Ajanta Pharma, Tata Metaliks etc. 84cr investments (net of goodwill): 104cr cash outflow (refer to the âUses of Cashâ table) towards investments purchased. Below is a summary of Uniply Industriesâ proceeds and use of capital over the past four years. How to Identify Multibagger Stock? Hunting for a potential multibagger stock is a difficult task. Get Uniply Industries Ltd Board meetings details. ... Out of the 296, 14 stocks gave multibagger returns of over 500% during the year. De-growth in Plywoodâs B2C Business: Uniplyâs 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. Why did the company raise so much capital despite the managementâs claim in its FY18 Annual report that âThe Company does not expect to make any significant capex across the foreseeable futureâ? Creating environments where people love to be…. 650,000,000 and its paid up capital is Rs. 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 Industriesâ shareholders went from owning 100% of the Plywood business to ~37%, while receiving discounted valuation for the stake sale. Since taking support at ₹375 in early February, the stock has been in a strong rally. 94cr EV/155cr FY19 Sales), and at 0.12x EV/PotentialSales (i.e. 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. <10% of these dealers carried Uniply brand and some of them did not even recognize the brand. Of the few dealers that carried Uniply, they also carried other renowned brands such as Greenply, Centuryply, etc. We would appreciate your valuable feedback! Its authorized share capital is Rs. 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. Arihant Foundations & Housing Ltd crashed 14.69% to Rs 16.55. Deducting this 30cr from 104cr, gives us 84cr. Note that we have used FY19 sales in our valuation as FY18 sales was transitory in nature given the transaction was consummated only towards the 2H of FY18. 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. No, the third way.If you are an investor and want to cleverly select stocks to invest in the Indian stock market for consistent returns, then you are in the right place. Our principal focus as an organisation is to empower you to work and live better. To get a sense of the distribution network of Uniply, I called 25+ dealers across key markets for Uniply like Chennai, Chandigarh and Ahmedabad. 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 also offers blockboards, doors, decorative veneers, laminates, liners, flooring, adhesives, and furniture and furnishing products. Further conversations with these dealers revealed that Uniply has no particular competitive advantage over other brands. Caplin Point Laboratories has grown 10 times in short period of time. ... Marksans Pharma, Cupid Ltd, Kesar Petro, Uniply Industries, Pressman Advertising, NGL Fine Chemicals etc. 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. Uniply Industries view the bonus declared by various companies, bonus ratio, record date, ex-bonus date. during FY19, so only 100cr worth of warrants now remain unexercised). Weak Brand Advertisement: Actual advertisement expenditure has been nominal relative to the 4-5% of sales guidance provided by Keshav back in 2015. The 615cr capital raise through FY18 does not even include the 300cr of capital expected to flow from convertible warrants during FY19/FY20 (note that about 200cr of warrants were already exercised in Oct 2018 i.e. The question we have to ponder is how we missed out on the bonanza and whether we are too late to the party. Its sale of plywood business to an associate company at a potentially discounted valuation raises suspicion. Does management's Actual Execution match its Tall Claims? 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