Author Topic: BCL -- Bolan Castings Limited  (Read 2034 times)

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Offline ayubkhuhro

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BCL -- Bolan Castings Limited
« Reply #-1 on: May 02, 2015, 11:19:13 PM »
BCL About the Company:

Company Overview: Bolan Casting was incorporated in early 1980s as a public listed com-pany by Pakistan Automobile Corporation Limited (PACO) under the administrative control of Ministry of Production and was later privatized in 1993. The Company has a modern foundry at Hub to produce automotive casting. It also has facilities of duplex melting, high pressure molding, sand preparation and shell core making, new sand pre-conditioning, shot blasting, fettling, heat treatment and necessary metallurgical treatment. Main products of the company are: cylinder block, transmission case, center housing etc. Major customers of the company include: Millat Tractors, Al Ghazi tractors, Ghandara Nissan, etc.

9MFY15 Result review: FY14 remained one of the poorest years for BCL as far as financial
performance is concerned, the company posted a net loss of PkR105.5mn (LPS: PkR9.2) vs.
net earnings of PkR22.2mn (EPS: PkR1.94) in FY13, primarily because of Millat Tractors
(largest customer, constituting ~90% of the total sales) curtailing its purchases, following
reduction in tractor demand, owing to imposition of higher GST on sale of tractors.  That said,
reduction in sales tax on tractors from 17% to 10% in FY14?15 budget allowed BCL’s top?line
to exhibit a massive growth of 85%YoY during 9MFY15 to reach PkR1.36bn. With cost of sales
increasing at a slower pace, GMs of the company went up from gross loss in 9MFY14 to
13.4% in 9MFY15. Additionally, the company witnessed a downfall of 27%YoY in its borrow?
ing cost on the back of continuous monetary easing by the Central bank amid deleverag?
ing.  Resultantly, the company posted a bottom?line of PkR59.0mn (EPS: PkR 5.14) in 9MFY15
vs. a net loss of PkR117.5mn (LPS: PkR10.24) in 9MFY14. Recovery was also evident on a se?
quential basis where the company’s bottom?line posted earnings of PkR25.9mn (EPS:
PkR2.26) against a loss of PkR 56.4mn (LPS: PkR4.92) in the corresponding period last year.


Has anyone seen the results of BCL (Bolan Castings Limited). The company has gone thru an entire turnaround. 

It is owned by the Millat group. The company manufactures castings for Tractor companies primarily for Millat.

I see that in 9MFY15 the company posted an EPS of Rs 5.2/share ( in 3Q the EPS was 2.26/share vs a loss 4.9/share last year in same period in 3QFY14) while last year in 9MFY14 company posted a loss of 10.2/share. Last year the company posted a loss of Rs 9.2/share for full FY14. This would be a substantial turn around I believe. 

I also see that pig iron prices are declining which is the major raw material along with lower electricity cost and the company could also book substantial electricity savings due to Fuel Surcharge adjustment for this and next quarter.

Does anyone have a view on this company? Moreover in Pakistan last 2 quarters usually depict a rise in tractor sales and hence the company's profitability could go higher.
« Last Edit: May 03, 2015, 01:43:30 PM by ayubkhuhro »

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BCL -- Bolan Castings Limited
« Reply #-1 on: May 02, 2015, 11:19:13 PM »

Offline ayubkhuhro

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BCL -- Bolan Castings Limited
« on: May 02, 2015, 11:22:47 PM »
Has anyone seen the results of BCL (Bolan Castings Limited). The company has gone thru an entire turnaround. 

It is owned by the Millat group. The company manufactures castings for Tractor companies primarily for Millat.

I see that in 9MFY15 the company posted an EPS of Rs 5.2/share ( in 3Q the EPS was 2.26/share vs a loss 4.9/share last year in same period in 3QFY14) while last year in 9MFY14 company posted a loss of 10.2/share. Last year the company posted a loss of Rs 9.2/share for full FY14. This would be a substantial turn around I believe. 

I also see that pig iron prices are declining which is the major raw material along with lower electricity cost and the company could also book substantial electricity savings due to Fuel Surcharge adjustment for this and next quarter.

Does anyone have a view on this company? Moreover in Pakistan last 2 quarters usually depict a rise in tractor sales and hence the company's profitability could go higher.


http://www.kse.com.pk/newsattachment/065793.pdf

Offline dr.muhammad zia

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BCL -- Bolan Castings Limited
« Reply #1 on: May 03, 2015, 03:48:14 AM »
Has anyone seen the results of BCL (Bolan Castings Limited). The company has gone thru an entire turnaround. 

It is owned by the Millat group. The company manufactures castings for Tractor companies primarily for Millat.

I see that in 9MFY15 the company posted an EPS of Rs 5.2/share ( in 3Q the EPS was 2.26/share vs a loss 4.9/share last year in same period in 3QFY14) while last year in 9MFY14 company posted a loss of 10.2/share. Last year the company posted a loss of Rs 9.2/share for full FY14. This would be a substantial turn around I believe. 

I also see that pig iron prices are declining which is the major raw material along with lower electricity cost and the company could also book substantial electricity savings due to Fuel Surcharge adjustment for this and next quarter.

Does anyone have a view on this company? Moreover in Pakistan last 2 quarters usually depict a rise in tractor sales and hence the company's profitability could go higher.


http://www.kse.com.pk/newsattachment/065793.pdf

Has anyone seen the results of BCL (Bolan Castings Limited). The company has gone thru an entire turnaround. 

It is owned by the Millat group. The company manufactures castings for Tractor companies primarily for Millat.

I see that in 9MFY15 the company posted an EPS of Rs 5.2/share ( in 3Q the EPS was 2.26/share vs a loss 4.9/share last year in same period in 3QFY14) while last year in 9MFY14 company posted a loss of 10.2/share. Last year the company posted a loss of Rs 9.2/share for full FY14. This would be a substantial turn around I believe. 

I also see that pig iron prices are declining which is the major raw material along with lower electricity cost and the company could also book substantial electricity savings due to Fuel Surcharge adjustment for this and next quarter.

Does anyone have a view on this company? Moreover in Pakistan last 2 quarters usually depict a rise in tractor sales and hence the company's profitability could go higher.


http://www.kse.com.pk/newsattachment/065793.pdf

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CCsQFjAC&url=http%3A%2F%2Fwww.pearlsecurities.com%2FReport.aspx%3FID%3D1140&ei=0VNFVe2xMI7Wat2-gbAH&usg=AFQjCNH2PgDZpKO-c4yFxdkMquIjm5BSuQ&sig2=OrTY86HF2QtfRAtXR228aA

i m following it since nov but free float bht kam hai ..no interest of awam
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Offline ayubkhuhro

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BCL -- Bolan Castings Limited
« Reply #2 on: May 03, 2015, 01:02:27 PM »
Roughy 40% is free float and nowadays good volumes can be seen. Millat Tractor Trades at a multiple of 14PE while this stock the multiple is less than 7x. Easily 8-8.5 EPS this year as 5.1 EPS already done in 9MFY15.
Company may give a cash and some bonus shares too.
I think upside of 40% from current levels looks quite easy especially for people who do not want to take a lot of risk.

Offline ayubkhuhro

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Re: BCL -- Bolan Castings Limited
« Reply #3 on: May 03, 2015, 01:48:02 PM »
AKD Securities view on BCL:

Future Outlook: Reduction in the sales tax on tractors, continuous DR cuts to further boost
auto?financing, and improvements on economic front are all factors backing demand for
tractors. Going forward, we sight FY15?16 budget as a major event that could potentially
drive the sector dynamics. A further reduction in the sales tax, accompanied with an?
nouncements of subsidies will help the sector and the company in particular. More im?
portantly, the decline in international iron ore prices (?27% CYTD) is set to improve the com?
pany’s margins substantially, which we believe might end up as one of the major triggers in
driving the overall profitability.

Investment Perspective: Pakistan saw an economic uptick during FY03?07 driven by high
manufacturing growth and infrastructure investment primarily owing to stable political en?
vironment and economic policies. During this period BCL traded at an average Price to Sales
ratio (P/S) of 0.7x vs. 0.4x in FY14. Considering similar macroeconomic dynamics at play
currently, we believe a P/S of 0.5x (discounted at 30% to 0.7x) is justified. Our P/S based
Jun’15 TP of the scrip works out at PkR82.6/sh, offering an upside of 41%.

Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #4 on: May 03, 2015, 01:50:36 PM »
AKD Securities view on BCL:

Future Outlook: Reduction in the sales tax on tractors, continuous DR cuts to further boost
auto?financing, and improvements on economic front are all factors backing demand for
tractors. Going forward, we sight FY15?16 budget as a major event that could potentially
drive the sector dynamics. A further reduction in the sales tax, accompanied with an?
nouncements of subsidies will help the sector and the company in particular. More im?
portantly, the decline in international iron ore prices (?27% CYTD) is set to improve the com?
pany’s margins substantially, which we believe might end up as one of the major triggers in
driving the overall profitability.

Investment Perspective: Pakistan saw an economic uptick during FY03?07 driven by high
manufacturing growth and infrastructure investment primarily owing to stable political en?
vironment and economic policies. During this period BCL traded at an average Price to Sales
ratio (P/S) of 0.7x vs. 0.4x in FY14. Considering similar macroeconomic dynamics at play
currently, we believe a P/S of 0.5x (discounted at 30% to 0.7x) is justified. Our P/S based
Jun’15 TP of the scrip works out at PkR82.6/sh, offering an upside of 41%.

where is its financials?
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Offline ayubkhuhro

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Re: BCL -- Bolan Castings Limited
« Reply #5 on: May 03, 2015, 01:54:09 PM »
http://www.kse.com.pk/newsattachment/065793.pdf

9M report uploaded by teh company on its website here:

http://www.bolancastings.com/PDF/accounts-14-15/mar-15/Mar-15.pdf

If any one want AKD report on BCL please tell me your email.

Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #6 on: May 03, 2015, 04:32:39 PM »
http://www.kse.com.pk/newsattachment/065793.pdf

9M report uploaded by teh company on its website here:

http://www.bolancastings.com/PDF/accounts-14-15/mar-15/Mar-15.pdf

If any one want AKD report on BCL please tell me your email.

thanx ayub bahi plz share your views on agtl and mtl also plz
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Offline ayubkhuhro

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Re: BCL -- Bolan Castings Limited
« Reply #7 on: May 03, 2015, 05:58:50 PM »
Zia BCL is much better and cheaper than AGTL and MTL and has more upside as per my view. MTL trades at a PE multiple of 14x and AGTL more than 12x while BCL trades at multiple of 7x. Rest choice is yours.

Offline SAM71

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Re: BCL -- Bolan Castings Limited
« Reply #8 on: May 03, 2015, 06:08:50 PM »
Some reasons for trading at low multiples are:
- Low market cap of the company
- Erratic earnings history- even the 2q was not as good as 1st and 3rd quarter of current financial
- Low free float

I do agree that at current levels the share has potential upside.
However, AGTL and MTL may be a different class

Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #9 on: May 03, 2015, 06:35:31 PM »
Some reasons for trading at low multiples are:
- Low market cap of the company
- Erratic earnings history- even the 2q was not as good as 1st and 3rd quarter of current financial
- Low free float

I do agree that at current levels the share has potential upside.
However, AGTL and MTL may be a different class

thats y i prefer agtl over bcl...
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Offline ayubkhuhro

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Re: BCL -- Bolan Castings Limited
« Reply #10 on: May 04, 2015, 09:24:48 PM »
Some reasons for trading at low multiples are:
- Low market cap of the company
- Erratic earnings history- even the 2q was not as good as 1st and 3rd quarter of current financial
- Low free float

I do agree that at current levels the share has potential upside.
However, AGTL and MTL may be a different class
SAM as per 2Q report there were some one off expenses which is why earnings were lower. The stock has low number of outstanding shares however I think with bonuses going forward outstanding shares should increase. Free float is around 40% which is quite good compared to other companies. Lets see over the next 3 months if the stock does rise or not.


Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #11 on: June 12, 2015, 05:27:14 PM »
Zia BCL is much better and cheaper than AGTL and MTL and has more upside as per my view. MTL trades at a PE multiple of 14x and AGTL more than 12x while BCL trades at multiple of 7x. Rest choice is yours.

Some reasons for trading at low multiples are:
- Low market cap of the company
- Erratic earnings history- even the 2q was not as good as 1st and 3rd quarter of current financial
- Low free float

I do agree that at current levels the share has potential upside.
However, AGTL and MTL may be a different class
SAM as per 2Q report there were some one off expenses which is why earnings were lower. The stock has low number of outstanding shares however I think with bonuses going forward outstanding shares should increase. Free float is around 40% which is quite good compared to other companies. Lets see over the next 3 months if the stock does rise or not.




zabardast post shared by ayub sahab ..i think target achieved :thanks:
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Offline tariq54

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Re: BCL -- Bolan Castings Limited
« Reply #12 on: August 06, 2015, 06:35:30 PM »

Online alicima

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Re: BCL -- Bolan Castings Limited
« Reply #13 on: April 26, 2016, 05:40:21 PM »

Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #14 on: June 04, 2016, 06:38:30 PM »
 :good
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
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Offline SAM71

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Re: BCL -- Bolan Castings Limited
« Reply #15 on: June 04, 2016, 06:45:52 PM »
:good

Dr. Sahib Reason??
Millat tractor exports or something else?

Offline dr.muhammad zia

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Re: BCL -- Bolan Castings Limited
« Reply #16 on: June 04, 2016, 06:47:10 PM »
:good

Dr. Sahib Reason??
Millat tractor exports or something else?

millat tractor sales is enough for its ride
Can any body tell on me?NO! NO!Yo better not stop me
Better not flop me from who I wanna be It’s my destiny
So yo Mr. spinner Here come the winner Play on the bass I’m in the race

Online alicima

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Re: BCL -- Bolan Castings Limited
« Reply #17 on: October 25, 2016, 04:12:03 PM »

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