Lykis
Lykis is an FMCG brand with over 1000 skus and does some private labelling for FMCG brands as well. (all of their brands and businesses are mainly export, so no real domestic presence)
Mr. Vijay Kedia held a large stake and was promoter of the company for years until Mr. Nadir Dhrolia took over recently. This resulted in a mega turnaround of the company. (top-line as grown multifold during the past couple of years)
Lykis disposed its loss-making tea business very recently, and Mr. Dhrolia used his rich experience in African exports to scale lykis’s revenues multifold (from ~100cr to current TTM of ~450cr). Mr. Dhrolia then purchased part of Mr. Kedia’s stake and ran an open offer to eventually hold close to 70% of the firm with Mr. Kedia has either exited or holds less than 1% now.
Lykis currently faces issues on generation of cash flows although the turnaround has just begun so it might be acceptable.
The valuations are cheap all things considered, it trades at a market cap of ~150cr with ttm rev. of ~450cr and Op. profits of ~12cr and PAT of 11cr (PAT is close to Op. profits primarily due to tax advantages due to previous loss making years) a multiple of ~14x currently. OPMs have also significantly improved, touching ~5.5% last quarter.
Is anyone tracking this company? Objective is to see if their accounting profits/turnaround translate into cash flows for the company and eventually FCF with improving ratios.
(disc. I may have made mistakes with the info/narrative above, If there are errors do let me know/correct, I will edit or delete the post. Further, all numbers are ~from screener.in.)
| Subscribe To Our Free Newsletter |
