Author Topic: SML -- Shakerganj Limited (formerly SGML)  (Read 23450 times)

0 Members and 1 Guest are viewing this topic.

Toshi

  • Guest
SML -- Shakerganj Limited (formerly SGML)
« Reply #-1 on: October 10, 2008, 03:37:12 PM »
All About Shakerganj Mills Ltd.

Financials
« Last Edit: March 07, 2016, 05:51:12 PM by M&M »

Pakinvestorsguide

SML -- Shakerganj Limited (formerly SGML)
« Reply #-1 on: October 10, 2008, 03:37:12 PM »

Offline Papa Jee

  • Play Safe.
  • Junior Member
  • **
  • Posts: 182
  • Thanks Received: 1
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« on: September 20, 2009, 03:16:31 PM »
i am expecting a good move in SGML.

HALA

  • Guest
SGML Recovery
« Reply #1 on: November 21, 2009, 07:27:09 AM »
Please see following link for 3rd Qtr report
http://shakarganj.com.pk/mills/reports_09/june-09.pdf

Toshi

  • Guest
Re: SGML Recovery
« Reply #2 on: November 21, 2009, 10:33:50 PM »
Please see following link for 3rd Qtr report
http://shakarganj.com.pk/mills/reports_09/june-09.pdf

if something special there you observed ?,then share here

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #3 on: October 19, 2012, 08:21:37 AM »


Record ethanol export likely
By Parvaiz Ishfaq Rana | 10/19/2012 12:00:00 AM
         
KARACHI, Oct 18: The country is likely to achieve a record export of over 400,000 tons of ethanol fetching $320 million by end of this calendar year.

Industry sources told Dawn on Thursday that so far around 313,102 tons of ethanol ($260 million) had been exported. `There are firm orders for another 85,000 tons which will take the ethanol export to cross 400,000 tons mark,` sources added.

In 2011, the country exported 363,764 tons of ethanol.

Pakistan began ethanol export in 2003 with a modest quantity of 60,000 tons when four distilleries started converting molasses into valueadded ethanol.

Prior to this the entire average quantity of two million tons of molasses produced per annum was exported at a throwaway price and never fetched more than $60 per ton.

However, with the passage of time the conversion capacity of molasses into ethanol increased manifold and today 15 distilleries are operating at 90 per cent capacity. These units have a total conversion capacity of 553,200 tons and need around three million tons of molasses per annum.

Presently these distilleries are exporting four categories of ethanol Anhydrous with 99.97 per cent purity also known fuel grade, ENA (extra neutral alcohol) 96.50 per cent purity, industrial alcohol (B-grade) with 92 per cent purity and blended (mix ENA and industrial grade) with 95 per cent purity.

Industry sources said that seven distilleries were operating in Sindh and eight in Punjab with two distilleries were under process of expansion Unicol and Shakerganj.

Furthermore, one more distillery, Hunza Sugar Mills was expected to soon come into production in Punjab.

Mohammed Kasim Hasham, an ethanol exporter and chairman of Hasham group of companies, said ethanol had become an important export item for the sugar industry.

He further said there was a strong demand for ethanol inthe world market particularly for fuel grade having 99 per purity and exporters managed to fetch a good price in the range of $775 to $900 per ton and most of exports had gone to Far East followed by Europe, Turkey and Middle East. `The technology has helped ethanol exports to small market at a faster pace because introduction of ISO tanks that could even be airlifted. Around 40,000 tons of ethanol this year has been exported through ISO tanks, he added.

Hasham disclosed that there is a wide range of utility of ethanol and besides being used as a fuel and gasoline it is being used for making medicines, cosmetics, perfumes etc.
I hate waking up.

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #4 on: December 05, 2012, 11:35:16 AM »
How Debt plays with the profitability of a company

Shakarganj Mills is primarily engaged in manufacture of sugar. It has 3 plants:-
Location       Capacity
Jhang           12000 tons/day
Bhone           8000 tons/day
Dargai Shah  4000 tons/day

The company also manufactures ethanol from its two plants at Jhang and Bhone with total annual capacity of 77 million litres.

The company has a yarn unit with the name Crescent Ujala having 26000 spindles and annual production capacity of 8.3 million kgs.

The company manufactures particle board (substitute for wood in furniture) having capacity of 30 cub ft / day
The company has a power generation plant at Jhang capacity 8MW using biogas.
The company also has interests in food segment through shakarganj food limited.

Till 2003, the company had stable earnings at par with its capacity. In 2003, the company took over Crescent Ujala Yarn Mills and from here the story of downfall started. Long term debt increased from Rs. 660 million to Rs. 1775 million. In 2005, debt further increased to Rs. 2250 million due to investment in Shakarganj Foods and new sugar plant at Dargai Shah. Year 2006 and 2007 were adverse for sugar business due to increase in cane price, govt importing sugar and hence decline in local price and operating loss from newly built plant at Bhone. This resulted in company going to operating losses. While the long term debt stayed constant, the company was unable to reduce it because of losses. From year 2008 to 2012, while the sugar business came back to normal, gross margins in range of 9-10%, Shakarganj Mills sitting on a debt of Rs. 3 billion and short term borrowings of additional Rs. 3 billion, could hardly pay the finance costs. The company posted net loss per share of 11.59 (2008), 23.32 (2009), 12.66 (2010) and 1.17 (2011). Book value which was good at Rs. 76/- in 2005 declined to Re. 0.11/- in 2009 and went negative in subsequent years.
In 2009, the company defaulted on its loans which resulted in major loan restructuring and sale of strategic assets to the tune of Rs. 2.1 billion failing which, company would have to sell one of its sugar plants to repay the debt.
This resulted in company getting necessary liquidity and hence in 2012, company managed to post sales of Rs. 9 billion in 9m 2012.

Hy 2012 was in profits because company managed to earn significant profit to cover finance cost through increase in sales. However Q3 2012 was again in losses owing to depressed margins.

As far as my understanding is concerned, I will put the whole blame on management and poor decision making that ruined the 40 year value of the company in just 3-4 years. The accumulated debt beyond its size and ability and its textile segment never became profitable. It is important to always look at the debt of the company in its balance sheet and its capacity to repay before making any investment decision.

TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline tariqhafeez

  • Research
  • Senior Member
  • *****
  • Posts: 1135
  • Thanks Received: 37
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #5 on: December 05, 2012, 11:41:23 AM »
Dear brother poker face,  Very good analysis indeed!  the lesson is quality & capacity of management.  Hence, even though long term debt to buy new investment is not bad in itself if the business plan is executed by management per the feasibility submitted to banks.  This is where i see enterprising management of NISHAT , FAUJI , HABIB and DAWOOD are on top!

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #6 on: December 05, 2012, 11:41:45 AM »
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline llllll

  • Junior Member
  • **
  • Posts: 131
  • Thanks Received: 2
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #7 on: December 05, 2012, 11:56:54 AM »
sell sharab? pl confirm

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #8 on: December 05, 2012, 12:54:25 PM »
sell sharab? pl confirm
not liquor but fuel grade and industrial ethanol
90 percent is exported
technically yes.
« Last Edit: December 05, 2012, 01:27:16 PM by Poker Face »
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #9 on: December 05, 2012, 12:56:50 PM »
nice analysis .. what do you see in its future ? they have good product line, increasing margins in ethanol business would surely benefit sgml too ?
banks have allowed them 2.3 billion credit line ..
skfl it seems has started production again ... sgml holds half of skfl ..
I hate waking up.

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #10 on: December 05, 2012, 01:42:53 PM »
not so good
balance sheet still in pretty bad shape. Principal amount repayment will be a big challenge and therefore finance cost will remain high denting the bottomline.
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #11 on: December 07, 2012, 10:43:41 AM »
upper lock
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #12 on: December 07, 2012, 11:07:47 AM »
upper lock

it locked yesterday too ..  beta skfl is also locking with small volumes .. skfl capped after 13.5k turnover .. buy order at cap 238k    :skeptic:
I hate waking up.

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #13 on: December 07, 2012, 11:26:43 AM »
grandpa CSAP also locked for 3rd consecutive day
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline mra901

  • Active Member
  • ***
  • Posts: 802
  • Thanks Received: 25
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #14 on: December 07, 2012, 11:30:30 AM »
grandpa CSAP also locked for 3rd consecutive day


chaloo achaa hai pura group ki suni gai hai
all 3 in pocket
Csap ke liye  :thanks:

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #15 on: January 07, 2013, 03:00:13 PM »
I hate waking up.

Offline Poker Face

  • Value Investor
  • Global Moderator
  • Senior Member
  • *****
  • Posts: 4900
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #16 on: January 09, 2013, 02:33:59 PM »
FY 2012 eps 6.62 vs 2011 lps 1.17

2012 Result

Balance sheet still in bad shape, liabilities exceed assets by Rs. 5 billion with equity zero!
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
« Last Edit: January 16, 2013, 10:08:13 AM by ouulman »
I hate waking up.

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: SGML -- Shakerganj Mills Ltd.
« Reply #18 on: January 16, 2013, 10:07:43 AM »
http://shakarganj.com.pk/mills/reports_12_annual/Production%20Data.pdf

production of all divisions is near all time highs ..

cash flow from operations is a healthy 765 million ... more than half of it has been used for capex  :skeptic:
I hate waking up.