INDUSTRY : my views are same as yours.however, this perception wrt industry can also provide low price points wrt value to enter the company.
Company : I am putting my trust in management when they say their superior margins are due to technical and specialised products, and, management comes across as frugal as anybody can get and operationally exceptional in sweating the assets.
Management : Agree to some of the points. They come across as conservative, content and satisfied with the size of business (and wealth, controlling stake just above 50% to fend off any possible attack) they have built. I believe there was a mention somewhere Promoter stated he wants to live a simple life and dividend income is sufficient enough to take care of his expenses. I do not think this (their mindset) qualifies as survival mode, rather just the very opposite. In the recent AGMs they have stated cash on books is for growth (organic or inorganic) purpose but only when they probability of success is very high.
I do not think this is a high flyer, but if you check their FCF generation, return metrics (post adjusting for additional inventory and cash they are carrying, additional inventory liquidated during favourable times and cash hopefully utilised for growth purpose - no timeline) and 10-15% long term CAGR earnings (and FCF) growth whenever it happens, this can be decent addition. Of course based on personal investment targets and time-horizons. Other key parameters: what will be utilisation of additional FCF generated, if any. Test for your temperament. Price points you enter at.
Disclosure: Invested. I have small position wrt PF, will add to it using favourable part of cycle, or, Growth capex announcement as a trigger (off course depending on the price available at that point of time). Enjoying average dividend yield and sitting on cash(in company’s balance sheet, not mine) till then, or, may be my patience will run out.
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