Had a very generic talk with the Company Secretary Mr. Mohan. It wasn't difficult to reach him and he sounded pretty positive about the business prospect. Below are the details.

Q. Scale of disruption in the normal business functioning due to Chennai rains
A. No major disruption. Out of three divisions two were working completely fine. In one division there was very minor disruption. Just that the employees were not able to report during the daytime which had very minor effect on the domestic payroll business. International business was doing ok as people in night shift were able to report. Due to insignificant disruption no notice was given to BSE/NSE.

Q. How is the business doing? Reasons for the turnaround?
A. The business has improved at both domestic and International fronts. The 2 international subsidiaries have also turned around and reporting profits due to addition of clients.

Q. Sustenance or improvement of earnings going forward?
A. Company has added clients at both foreign and domestic front. The business is doing good. In quarter 2 there was other income of 5Cr. due to tax refund which of-course won't be same for Q3.

Regards
Krishna

Hello everyone,

I wish to share my portfolio with you to have your expert views on the same:

Pharma: (40%)
1. Granules : 30%
2. Ajanta: 8%
2. Caplin: 2%
Financials: (40%)
1. Repco : 25%
2. HDFC BK : 7.5%
3. Indusind: 7.5%
Agrochem & IPR(10%)
1. PI Ind : 10%
Consumer (5%)
1. Amara Raja : 5%

Cash: 5%

Exited in recent past but kept under observation for re-entry:Page and Gruh due to high PEs.

Hi Brajesh,
I too have not been able to find out the buyer list but when I call them up they has giving me the below idea:-

1. Spenta is supplying socks as white label to most of the retailers in the country and boasts of customers like Reliance retail, Future group, AB etc.
2. It claimed itself to be the leader in Export of white level socks via large trading houses who are selling to big brands internationally.
3. Recently they are trying to develop their own brand as Spenta Socks which they have got a very good response.

Hi Chaitanyak,

The main parameter I judge is cash floe and profit margin and in both parameter Virat Ind stand way lower than Spenta. Also I haven't got any good response from the management of Virat.

My concern is not with Virat but with the other major player in the industry like Mustang, Renfro etc. I am doing an analysis on them as a part of my business and competitor analysis. Will updated more as soon as I finished.

If you guys can gather any information on the same [in the buyer range as well as with the competitor]it will be very helpful for me.

N.B. :- I have not buy Spenta Int yet as my analysis is not complete but the financial of a company is the first line of checking for me and undoubtedly Spenta Int has very lucrative financial as I have described above.

I am very positive as it is the leader and trading at cheapest valuation on M.Cap to sales or EV/EBITDA or even P/B. It fell due to EPS fall, but the fact is that in 2015 and 2016 and 2017 it will zoom again. Govt is giving a lot of BOT projects to road construction fellows. I have a very long position in it, due to management quality and foreign portfolio too.