Updated on July 14, 2016: The company’s name has changed to Arambhan Hospitality Services Ltd from Cawasji Behramji Catering Services Limited.
Founded in 1944, Cawasji Behramji Catering Services Limited (CBCS) has grown to be the market leader in the offshore, Oil & Gas, Catering Industry. It is also into restaurant business under the brand name “MeSoHappi”. CBCS is a part of the Arambhan Group, Founded by Alfred Arambhan, a ‘first generation’ entrepreneur. The Arambhan Group is one of India’s most highly reputed companies operating in the following areas of Shipping, Clearing & Forwarding, Investment Banking, Real Estate Development, Home Land Security, Entertainment, etc.
Its present business composition can be categorised into the following divisions:
Offshore catering & housekeeping services: They provide food catering & housekeeping services to various Indian and International shipping and oil exploration companies. They operate and manage staff cafeterias, on a contract basis, at the premises of its corporate clients on different locations. Company provides services on locations such as Offshore Barges, Rigs, Diving Vessel, Supply Vessels and Remote Production.
Onshore catering services: They provide food catering services to its corporate clients, banquets, parties & events and gymkhanas. Under this division, they operate and manage services, on a contract basis, at the premises of its clients.
Fine Dining Restaurant: They operate a dedicated restaurant under the brand of “MeSoHappi”. Its eatery restaurant offers a fun-dining experience with its service focusing on providing consumers with quality social engagement, fun and plays along with quality food and service in modern ambience.
- The company has more than 50% market share in Offshore Catering Industry.
- The promoters have extensive experience running into decades of serving clients such as L&T, Essar, Punj Lloyd, ONGC, Leighton Welspun, Kreuz, Hind Offshore, etc.
- High Promoter shareholding of 73.40% as of March, 2016.
The net profit for FY 2015 stood at 0.82 Cr which was less on account of subdued crude oil exploration activities. Accordingly, it is available at a PE of approx. 15.70 (Current Market Price is Rs. 25.75). Looking at the net profit for the prior two years (2.22 Cr. and 2.65 Cr.), it appears that the company is available at a price much below its intrinsic value.
Given the promoter background, client profile and market leadership, CBCS can give good returns over the years.