RESEARCH

ON
COUNTRY
CLUB

BSE
LISTED
CMP Rs 20
Rs
52 WEEK HIGH/LOW 78/Rs
6.8
FACE VALUE Rs 10
AVERAGE VOLUME 521883
Rs 129
MARKETCAP
Crore

COMPANY OVERVIEW:
In 1989, Mr. Rajiv Reddy known for his entrepreneurial capabilities and
foresight acquired the imposing Vilayat Manzil, the palace of Nawab Wali-
Ud-Daula in Hyderabad and converted it into what is now known as The
Country Club in Hyderabad and thus the Country Club was born.
CCIL (Country Club India ltd) is one of the fastest growing entertainment
and leisure conglomerate in India. CCIL is a pioneer in the concept of family
clubbing in the country.
CCIL has established 186 properties of which 35 are owned and 158 are
franchised properties.
Presently it has 220 plus affiliation plus a global gateway via country vacation
and RCI affiliation of 3900 resorts for its esteemed members.
Factors Driving the Clubbing Industry Growth:
Growth in the number of urban middle class. The middle class population is
increasing at rate of 20 million annually.
The average spending by the Indian have increased in the over the last
decade.
Under the major head of consumption the fastest growth came from the
leisure and entertainment.

KEY REASON FOR INVESTMENT:

Industry is growing at double digit because of the rising income.
Mahindra Holiday listing brought the industry into focus.
All the negatives have been discounted in the stock. Any simple positive can
drive the price of the stock. The earning has slumped and simple increase will
see good percentage increase due to the base effect.
As the economy is reviving it will help company to be back on growth path
after the decline in financial performance last year.

KEY RISK:
Delay in global economy revival.
Increase cases of pandemic like H1N1.

SHAREHOLDING PATTERN:

NO.OF SHARES % OF TOTAL

PROMOTER 34597386 44.69%
INSTITUTION 13786658 17.80%
GENERAL
PUBLIC 29040691 37.51%
GRAND TOTAL 77424735 100.00%

FINANCIAL:

31/03/06 31/03/07 31/03/08 31/03/09

TOTAL INCOME 64.9 147.07 314.24 292.93
126.50% 113.60% -6.80%
EXPENDITURE -43.26 -92.15 -193.8 -251.18
PBDITA 21.64 54.92 120.44 41.75
162% 118% -65%
DEPRECIATION -3.26 -4.6 -6.53 -11.44
PBIT 18.38 50.32 113.91 30.31
INTEREST -2.78 -4 -12.64 -13.52
PBT 15.6 46.32 101.27 16.79
TAX -1.67 -12.29 -36 -7.09
PAT 13.93 34.03 65.27 9.7
142% 91% -85%
Key Highlights:
Total Income grew Yoy at an average of 77%. In FY2009 the Total Income
declined by 6.8%, due to the slump in the financial market.
PBDITA grew Yoy at an average of 71%. In FY2009 the PBDITA down by
65%. Decline is attributed to the increase in expenses.
PAT grew Yoy at an average of 50%. In FY2009 the PAT slumped by 85%.
Increase in interest rate and depreciation is the main reason.
RATIOS:

31/03/06 31/03/07 31/03/08 31/03/09

EPS 1.797419 4.390968 8.421935 1.251613
PBDITA
MARGIN 33.34361 37.34276 38.32739 14.25255
NPM 21.46379 23.13864 20.77075 3.311371
INTEREST
COVER 6.564286 12.58 9.011867 2.241864

Key Highlights:
Eps down in FY2009 from Rs8.4 to Rs1.25.
PBDITA margin down in FY2009 from 38% to 14.25%.
NPM slumped in FY2009 from 20.7% to 3.3%.
Interest cover is still healthy but is down from 9 to 2.2 in FY2009.

COMPARISION OF Q1FY2010 WITH Q1FY2009:

Q1FY2009%CHANGE Q1FY2010
TOTAL INCOME 104.76 -46.63 55.89
EXPENDITURE -68.9 -46.4
PBDITA 35.86 -73.50% 9.49
DEPRECIATION -2.64 -3.08
PBIT 33.22 6.41
INTEREST -3.6 -1.9
PBT 29.62 4.51
TAX -10.35 -1.54
PAT 19.27 -84.50% 2.97

Key Highlights:
Total Income came down on QoQ basis by 46%.
PBDITA declined on QoQ basis by 73.5%.
PAT moved down on QoQ basis by 84.5%.

VALUATION:
We expect the FY2010E EPS to double from here at Rs6 as the economy
moves out of recession this year. So the stock is trading at 3.3X to FY2010E
EPS. We value the company at 6X, the fair value we arrive at is Rs36.
 CONCLUSION:
The stock is high risk high reward counter. The investors with bit of risk
appetite should buy it at current level. The investment time period would be 6
to 8 months.

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September October Novem ber Decem ber 2008 February March April May June July Augus t Septem ber October Novem ber 2009 February March April May June July Augus t September October