@varundarji Thanks for doing this. Couple of questions from me
- Name of the top 5 customers and % of revenues from them.
- When will the new plant (30,000 spindles) be operational? and What will be its expected contribution to the revenue/profit?
@varundarji Thanks for doing this. Couple of questions from me
@varundarji Thanks for doing this. Couple of questions from me
I will be attending Ambika Cotton Mills AGM in Coimbatore tom.
Please feel free to post your questions here which I could take up with the mgmt.
I will be attending Ambika Cotton Mills AGM in Coimbatore tom.
Please feel free to post your questions here which I could take up with the mgmt.
Record date for being eligible for IDFC Bank shares is Oct 5. Further,
the day on which IDFC shares will trade ex-demerger (i.e. ex-bank) is
Oct 1. The ‘ex date’ is the working day before the record date but
since Oct 2, 3 and 4 are holidays, Oct 1 is the ex-bank date for IDFC
shares.
b) To facilitate price discovery for IDFC shares ex-bank a one
hour window (pre-open) from 9 to 10 am will be provided on Oct 1 on
NSE and BSE. During this hour, the trades will not be live but will be
there only to facilitate price discovery. Post 10 am the trades on
IDFC ex-bank shares will go live on both exchanges.
c) IDFC Bank shares will be allotted to IDFC shareholders on Oct 9.
d) IDFC Bank shares are likely to be listed and traded by Nov 6.
Hence, for the period Oct 9 to Nov 5, IDFC Bank shares will be
unlisted.
Record date for being eligible for IDFC Bank shares is Oct 5. Further,
the day on which IDFC shares will trade ex-demerger (i.e. ex-bank) is
Oct 1. The ‘ex date’ is the working day before the record date but
since Oct 2, 3 and 4 are holidays, Oct 1 is the ex-bank date for IDFC
shares.
b) To facilitate price discovery for IDFC shares ex-bank a one
hour window (pre-open) from 9 to 10 am will be provided on Oct 1 on
NSE and BSE. During this hour, the trades will not be live but will be
there only to facilitate price discovery. Post 10 am the trades on
IDFC ex-bank shares will go live on both exchanges.
c) IDFC Bank shares will be allotted to IDFC shareholders on Oct 9.
d) IDFC Bank shares are likely to be listed and traded by Nov 6.
Hence, for the period Oct 9 to Nov 5, IDFC Bank shares will be
unlisted.
Since the company is in ultra micro-cap segment much information is not available in public. AGM was held yesterday but due to other priorities wan't possible to attend it. Tone of the management as per the AR looks positive.
Management has also started giving dividend since last 3 years or so and has been increasing the dividend %.
If we look at the page 5 of the latest AR, in the "state of company's affair"section- 3rd para management says that their core business is coastal surveillance and transportation of man and materials through waterways and this IMHO is more immune to oil price fluctuations. Also the management in the last three years has been purchasing new vessels and the same has been mentioned in the latest AR that they are looking to buy more new vessels. SInce it is a services business I feel the margins might be sustainable, will have to watch out for that.
Opportunity size is definitely huge as India progresses to protect it Offshore assets from piracy, etc
Varun...... Earlier you said "Currently My eye is on TTK Prestige, P&G, Titan, Glaxo Consumer,
pidilite, Bajaj corp in case any of them comes down substantially.'
What is your view on Titan & pidilite at CMP , as both have come down
This stock showed up on one of my screens on screener.in (well thanks screener.in founders - it's a lovely website now that I'm playing with it).
What Company Does?
The company is a subsidiary of SPG Prints, Netherlands which is a leading company in textile and graphics printing worldwide. Stovec Industries was established in 1970s. The company manufactures various machine + parts for the textile printing, graphic printing and sugar screens.
The company is leader in India in the sector of Rotary Screen Printing. They also have products that cater to Digital Graphics Printing markets and Sugar Screens. They have a manufacturing and R&D facility in Ahmedabad. In 2014, they acquired Atul Screens Private Limited to augment their market share in Sugar Screens Business.
More on Products
Kitex Garments factory (3.06)
Rotary Printing Process
More links can be found upon googling.
Accordingly their major customers are Textile Manufacturing Companies, Packaging/Label Printing, Sugar Mills.
India Center
Ahmedabad centre is mainly involved into manufacturing of rotary screen prints, distribution and after sales support.
Competition
I do not have a clear-cut picture of competition as well as Industry scenario. This is a TODO item in upcoming days and I am looking for inputs from fellow VP members.
Just a quick search on IndiaMart shows up following companies:
I have no idea whether these guys are manufacturer themselves or they just import and distribute in India. If fellow VP members from Ahmedabad, who are interested, can do some scuttlebutt - that would be a great learning.
A Look at Numbers - Standalone
Sales and Profit
Source: Moneycontrol
Very good set of numbers last year.
Cash Flow:
Source: Moneycontrol
Cash flows have declined in Dec'13 and Dec'14 even though net profit has increased and that remains a matter of concern.
Inventory increased from 0.91 Cr to 8.77 Cr from Dec'13 to Dec'14.
Trade receivables increased from 0.95 Cr to 6.52 Cr from Dec'13 to Dec'14.
Both of these are matter of concern as well.
Ratios:
Company has been regularly paying out dividends, there is no debt on company. Promoter holding is 71% and No equity dilution in last 10 years.
TTM Net Profit is already 14.85 Cr., a growth of 33% YoY. Stock is trading at 24 TTM P/E (Relatively expensive).
A Look at Numbers - Consolidated
Source: Moneycontrol
The delta between the standalone and consolidated is the contribution of Atul Sugar Screens Pvt. Ltd. Atul's business seems to be of lower quality compared to Stovec's core business.
Consolidated cash flow numbers and capital ratios also take a hit on consolidated basis.
Product Share
A Word on MD
Mr. Shailesh Wani is the non-promoter, managing director of the company.
He is an alumnus of VJTI, Mumbai (which is my alma matter as well) which is a top college in Mumbai.
The company is paying him total compensation of 1.15cr+ and a special resolution was passed this year. He is not directly related to any of the promoters.
This might be interpreted in two ways.
1) This might be an indication that they have found a good MD who board feels confident that will take the growth forward.
2) Or some competitor tried to snatch him and board had no option but to raise his compensation.
Views Invited.
Thanks,
Rupesh
Disc: Not invested, might buy on declines.
your take on this development
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