APLA results

watch.cse · 1 APLA results Wed Jun 01, 2011 8:01 pm

watch.cse

Stock Trader

Posts : 9
Equity Stars : 4869
Reputation : 0
Join date : 2011-01-28

dear innam,
I saw your valuable finding on VFIN & REEF. Thanks for your great job for disclosing real face of financial statements.
so, what is your comment on APLA results
Currently I'm having 500 shares.

Thanks innam.

TuskerLK · 2 Re: APLA results Wed Jun 01, 2011 8:03 pm

TuskerLK

Senior Manager - Equity Analytics

Posts : 403
Equity Stars : 5367
Reputation : 36
Join date : 2011-03-08

You could have dropped a private massage,

by the way my broker is also recommending to buy APLA, which i have no idea about.

Gainer · 3 Re: APLA results Wed Jun 01, 2011 11:06 pm

Gainer

Associate Director - Equity Analytics

Posts : 3451
Equity Stars : 10948
Reputation : 264
Join date : 2011-03-13

APLA very soon go for split 10 for one

mark · 4 Re: APLA results Wed Jun 01, 2011 11:22 pm

mark

Expert

Posts : 2677
Equity Stars : 9751
Reputation : 423
Join date : 2011-02-04
Age : 33
Location : Hell....

did anyone noticed last days trades??.............saw a big downturn to 94Rs just market open,i think only 900 shares.........

innam · 5 Re: APLA results Wed Jun 01, 2011 11:37 pm

innam

Manager - Equity Analytics

Posts : 215
Equity Stars : 5564
Reputation : 130
Join date : 2010-07-02
Location : Bacon county, GA

watch.cse wrote: dear innam,
I saw your valuable finding on VFIN & REEF. Thanks for your great job for disclosing real face of financial statements.
so, what is your comment on APLA results
Currently I'm having 500 shares.

Thanks innam.

look i haven't really bothered to look at the share but from a quick glance there's nothing exceptional.
The yearly EPS of 17 looks good (but recurring EPS is only 14-since they have sold some shares for a 15 million profit during the year), and the quarterly trend is a bit of a concern (Sept qtr EPS was 7, Dec qtr EPS was 3 and March qtr EPS was 2). If this is seasonal behavior than we may expect a better EPS for June compared to March but if there is a structural decline in the business then you may run into bad results in June. Since you own 500 shares you might as well hold till June results to see what happens (especially since some of the gallery seems to be expecting a magical split-ofcourse i think he's been hoping for a split for the last 2 years now).

Positives for the share is that IF there is a construction boom they will clearly benefit, the negatives is that they are totally dependent on ACL for the business along with transfer pricing issues. If you look at the balance sheet you can see that ACL related companies have to pay 476 million (nearly two quarters revenue) yet due to delays in getting this APLA is running a bank OD of nearly 50 million so basically minority shareholders have to hope that ACL would treat them fairly.

watch.cse · 6 Re: APLA results Thu Jun 02, 2011 7:00 am

watch.cse

Stock Trader

Posts : 9
Equity Stars : 4869
Reputation : 0
Join date : 2011-01-28

Thanks innam.
I like the way you comment on FS. can i know how to analyze cash flow statements.
Is it important?
how to measure company growth. by using EPS or NAV
your comments are highly appreciated

innam · 7 Re: APLA results Thu Jun 02, 2011 11:13 am

innam

Manager - Equity Analytics

Posts : 215
Equity Stars : 5564
Reputation : 130
Join date : 2010-07-02
Location : Bacon county, GA

watch.cse wrote:Thanks innam.
I like the way you comment on FS. can i know how to analyze cash flow statements.
Is it important?
how to measure company growth. by using EPS or NAV
your comments are highly appreciated

if you are just starting out just focus on the line "Cash generated from / (used in) operations" within the cash flow. Using APLA as an example you can see that this figure is a negative 60 million by looking for unusual line items you can see the reason for that is in the line "Amount due from related companies" during the the APLA has basically given short term working capital loans of 244 million for related parties. Also by looking at the cash flow you can see that non recurring profit from selling shares amounted to 15 million.
Generally you should use EPS to measure company growth but for certain sectors (like investment trusts) NAV has to be used.