20120414
It’s a M-cap 150cr SEEPZ Mumbai based jewellery house available at an attractive PE of 3.8. I didn’t find anything interesting or controversial on it’s website, news items and annual report, other than the following facts
Cons:
- The company acquired 100% stake in N. Kumar Diamond Exports in October 2010, along with it’s fully owned subsidiary House Full. Renaissance intends to sell jewellery in the domestic market through the House Full retail outlets in Gujarat and Maharashtra. To date, the brand House Full isn’t sufficiently publicized on their website except. I can’t find at what price the purchase was made and from whom. From page 52 of the annual report, it seems the company took on a loan of 142cr to pay-off for this acquisition.
- The company sold 2m equity warrants to promoters and some other investors on a preferential basis @ 76 per share, as per SEBI ICDR regulations while the total shares outstanding as of Dec ’11 end were 19m.
- Management Discussion and Analysis reveals that Revenue as well as EBITDA dipped y-o-y in FY10. A case can be made whether the company could have bought revenue with debt to camouflage lack-luster performance.
Disclaimer:
I have zero exposure to this company
investingkitten 