![]() In light of this, Webcentral has decided to focus for the time being on taking steps to restore Cirrus to a proper level of profitability. ![]() Unless Webcentral is able to obtain due diligence information to support a higher valuation Webcentral does not consider it can justify entering into negotiations for a potential control transaction. Since the close of the Takeover Bid, Cirrus shares have generally traded in the range of 2.8 cents to 3.2 cents, a range reflective of that value. Webcentral believes the Lonergan Report obtained by the Cirrus Board during the Takeover Bid effectively values Cirrus at 2.7 toĢ.9 cents per share, well below Webcentral's bid price of 3.2 cents cash per share. However, as at the time of this update, Cirrus and Webcentral have not been able to reach agreement on the terms on which due diligence information would be supplied to Webcentral. Since the close of the Takeover Bid, Webcentral has attempted to engage with the Board of Cirrus on the potential for another control transaction, such as a further takeover bid. Webcentral objectives with respect to CirrusĪs the largest shareholder in Cirrus, Webcentral now has a significant vested interest in the success and profitability of Cirrus. In total, Webcentral has expended in excess of $5 million to attain this 16.81% stake in Cirrus, and in now the largest shareholder in Cirrus. Since that time, Webcentral has increased its holding in Cirrus through on-market purchases to 156,349,355 shares equating to 16.81%. Upon close of the Takeover Bid, Webcentral had a holding in Cirrus of 155,666,592 shares equating to 16.74%. On 16 September 2021, Webcentral Group Limited's (Webcentral) on-market takeover bid for Cirrus Networks Holdings Limited (Cirrus) (Takeover Bid) closed. ![]() With many people entering into the stock market, there is a big target audience out there.Update to Webcentral Shareholders: Webcentral's Investment in Cirrus With the financials also, it looks good and has an P/E ratio of around 22 as opposed to the Industry P/E ratio of 47. Angel Broking has some edge over this and can put a tough competition to the other in this domain. The main competitors of Angel Broking are plenty – Zerodha, Groww and Upstox which are not listed and ICICI Securities, MCX India, HDFC Securities and Motilal Oswal which are publicly listed.Ī lot of the above companies mainly focus on the trading/brokerage side and put less focus on the advisory part. However, with more and more financial inclusion especially in rural areas, there is still a lot of scope in this area. Companies have to offer very attractive prices and offers to lure more and more people. There are a lot of players in this domain and it is very competitive. Such figures were expected due to the introduction of new people to the stock market in the lockdown. Net Profit ~ 289 cr (an increase of 236% YoY) The Debt/Equity ratio has decreased which is a good sign for the company as well.Īlthough the annual report hasn’t been officially out for FY21 for Angel Broking, we can calculate some rough figures from the Quarterly results: The Return on Equity (RoE) as well as the Return on Assets (RoA) have grown up over the years. Looking at some of the financial ratios, they all are indeed positive. This shows the approach of the company to retain more of its cash for further expansion and to improve the services better.ģ. Iii) The Net Cash flow has also increased throughout the years which is a consequence of increasing profit as well as reducing the dividends to be paid. Ii) The Cash flows from financing activities have become negative over the past few years which shows that the company might have started paying off its debt which is also evident by the decreasing Debt/Equity ratio. It now has more liquidity which it can use in new ventures or expanding its operations which is a plus point. This is a sign of a company who has matured and is not in its initial phase. i) Looking at the cash flows, we can say that Angel Broking turned positive in operating cash flows since 2 years. The 3 year CAGR (Compound Annual Growth Rate) has also increased over the years by a lot and if we look at the 2020 numbers, they might be even higher.Ģ. There has been an overall increase in the sales/revenue of the company which in turn reflects in the increase in the Net Profit as well. There is a lot which we can infer from this above data:ġ.
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