Once I requested and they were very willing to meet. I could not meet at that time. I am also connected to the CEO and some other employees on LinkedIn, and they keep on sharing company’s update there.
On OPM, my view is that they will maintain that margin in 2 digits. Paint application industry is moving from unorganised to organized, and this is a great wealth generation trigger.
On topline, I have found from their LinkedIn post that recently they completed painting of a reputed hospital in Delhi (A Tata Project) and they were rewarded a certificate for good service. I can see they are doing work in various schools and colleges, commercial buildings in different parts of India. My view is that though the topline will not jump, it will keep on growing at a decent pace of 20-25% in foreseeable future.
Though management has never stated this, once their paint application business gets a decent size, SKK may be keen to enter into India in paint manufacturing and it may become a vehicle for paint manufacturing (purely my speculation). Similar thing has happened in Sirca, who became paint manufacturer after doing import and distribution work for some time. India is too big a market for SKK not entering into India.
As a prudent public investor, I don’t wish to ask futuristic questions like future plans, future sales and margin from management. I am happy with whatever they announce publicly.
On a present analysis, a paint company is available at 16 p/e, with 20-25% expected growth, 1.6% dividend yield, debt free… enough for me.
(Disclosure: Invested)
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