Super duper Q2 FY16 results. Orbit changing.
- Net Sales up 85% to Rs 1018 cr
- Net Profit up 274% to Rs 289 cr
- International Generics up 342% to Rs 559 cr
- API Business up 43% to Rs 137 cr
Super duper Q2 FY16 results. Orbit changing.
It is not appropriate to compare two companies based on the charts. This does not add any value to the Kitex thread. Please refrain from doing so in future.
I think another growth area to think of is analytics. The company has already started providing analytics solutions to some airline customers and given they already have relationship/contract for RIVERA they can easily pitch analytics services to other airline customers or probably as combo package.
If they gain meaningful expertise in analytics, they could replicate the same solution to other industries as well. I mean RIVERA cannot be sold to other industries except airline but analytics could potentially be replicated. Just my thoughts, feel free to pour in your opinions.
Diclosure: Invested
The key to monitor is the receivables . The stock has tanked based on this factor also. What was Rs 150 cr at the beginning of the year went up to Rs 176 cr by March 15 and Rs 210 cr in June 15.
Is it possible to get the latest update as any delay in recovery or non-recovery will have significant impact on financials.
Rgds
Hi Kiran,
There's no clarity as to what the market share nos. are based on but I presume its based on sales because of something Mr. Kedar Vaze mentioned,he said International players in Indian F&F industry mainly sell to Indian and regional (Asia and Middle East) subsidiaries of their international customers and barring these sales S.H. Kelkar's market share in fragrances stands at around 40%.
Regarding convertible pref. shares,I've no clarity. Will ask some friends in institutions to find out if possible.
Its not like that. Company is entering the US retail market...This is going to increase its topline..Business of the company is good...I would like to say here...ROE ratio will not decrease rather it will increase since now Kitex will eat away the margins of the entire value chain...It has growth in its pipeline...
One more thing which i believe is - do not consider P/E in small and mid cap stocks...if they have real growth potential...just because if growth is there...the EPS and ROE and everything else is just going to grow 2 or 3 folds in years to come. When you look at the the PE (leading PE) - 2 or 3 years leading - you see PE to be real small..We should invest in Kitex at this moment - but the red flags I have above alarm me from doing that.
Not sure how people are valuing this company? My guess is people are valuing with the ROCE staying near 60% forever and the company will reinvest for growth based on that return which is lethal. operating margins of 42% will start coming down to industry average sooner rather than later and growth will come down to the global economic growth or nominal growth of local ccy within next 5-6 years.All these factored in will result in a much lower value for the stock and if we are true to the value investing principles and our goal is to buy a mispriced assets(with enough MoS ) in realtion to value and sell asset when price exceeds the value then its a no-brainer call. If value investing premise is based on valuing a firm by converging the numbers with the business economics, "hope" investing is valuing the company based on numbers that exist only on your wishful dreams and with little economic sense.
Disclosure:Not invested
Which site are you referring to for WABCO ... can you pls paste the link... with Regards,
Find the monthly chart attached. It has got very good support @ 700. I follow this line for all my LT investments. Price action around this line gives a clue whether to hold or not or book and re enter later.
One way of interpretation is SMART MONEY know better than us and they might have drilled deep instead of wide as they have access to data. We can talk about Wigloo, Gimmel and all that but do we have to data to support that and a draw a meaningful conclusion. NO .It is as simple as that. Dont waver unless there is a drastic change in fundamentals ( we will be the last person to know this) or drastic change in price action.
Please visit Professors site and see the example of WABCO.
Nothing is certain except Death and Taxes.
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