Cash & bank balance has increased to 241 Cr from 203 Cr in Mar 15. This is lot of cash, almost 2.5 times FY15 profit.
Fabric segment (71 Cr) has more capital employed than garment (110 Cr). The EBITA contribution from fabric segment is hardly 1 Cr. On the other hand, Garment segment contributed 43 Cr.
Why such low returns in Fabric segment as compare to garment?
Didn't like the way Rajendra Prasad answered few questions about company's performance. Even though there was slight decline in the revenue on YOY basis, Rajendra is not accepting the fact that there was any de-growth.
Nothing wrong with the result but just nervous about management's denial mode in accepting the facts.
Its better that information is posted here, instead of everybody asking for it to be emailed.
I noticed that the provisions are a lot higher YoY
Is this on account of DTL? Could have easily had 25-30% PAT growth otherwise.
Motilal Oswal came up with buy recommendation research report with target price of Rs. 145
Disc : invested
Q2 result is out:
20% net profit growth and 25% loan growth.
Garment segment has seen an upside and fabrics segment has seen a downside
I completely agree with above post. I think this sector has limited competition from few good players (read HDFC, ICICI, Axis, Yes Bank etc) so they made money on the back of bad service provided by PSU banks. But current structural changes ushered in by RBI by giving license of payment banks, new licence to Bandhan and IDFC with a promise of future "license on tap" will make competition severe in this sector.
As with any sector, competitive intensity gives great benefit to the end customer but dents profitability of the companies in the sector, till consolidation takes place. Telecom sector is very good example of that for last 5-10 years. Due to above reasons, it may be better to avoid this sector for next 2-3 years, till the dust settles and clarity emerges in terms of survivors.
It seems most of the the purchases have happened in this quarter only. Please refer shareholding pattern for non institutional shareholder - individual shareholders holding nominal share capital in excess of Rs. 1 Lac
From 20 shareholders in June having 8,85,016 shares with 0.8% of total number of shares, it went up to 22 shareholders having 21,56,673 shares with 1.95% of total number of shares for Sept end quarter. The difference is 2 new shareholders with 12,51,657 shares purchased. According to Shareholding pattern as on 30th Sept, Prof Mankekar is having 11,05,051 shares.
It could be sheer coincidence as he may already have some shareholding and added some more to get noticed (only shareholding above 1% get reported). But such big jump with so few new shareholder means either all current 20 individual shareholders need to buy lot of quantity to make up the number, which seems bit difficult.
This is my guess based on available date. I could be wrong. Expert views are invited.
