Q2FY24 results are out
Company added 100 Cr. in inventory which is now at ~498 Cr.
Cash equivalents ~ Rs.233 Cr.
Mcap ~ 880 Cr.
Management’s reply in AGM when asked about high inventory levels.
(https://youtu.be/ZrKdOYeM1D8?t=2539)
- Will not succmb to buyer’s pressure and will only sell with good margins as we are producing the best quality.
- Expecting lot of changes from December onwards as most of the mills have closed down (MSME). Pipeline is empty. Hopeful of Bulk production demand.
- Have been in the markets for 33 years. Buyer’s prefer to buy from Ambika due to quality.
- Debtors are lowest in the industry. Selling in Cash and on LC. Zero bad debts.
The above inventory levels suggest management is walking the talk and is bullish in near future.
Gokaldas exports quartely presentation is a good read to understand global demand scenario for apparels. (https://www.gokaldasexports.com/wp-content/uploads/2023/10/Investor-Presentation-2QFY24-Gokaldas-Exports-1.pdf)
“We are expecting a decent momentum in the second half of the year, particularly with Q3 production for Spring 2024, as brands have more or less destocked their inventory and are increasing their
order placements. We anticipate sequential growth to pick up in the next two quarters.”
Welsupn and Indo Count (Bedding, Towels etc) have also seen increased buying from all major retailers for the upcoming holiday season in the US.
FTA with UK will provide huge tailwind to the sector. Overall, the sector seems to be in good bullish trend. It will be interesting to see how Ambika management’s call plays out in next 2-3 quarters.
Discl: Invested
| Subscribe To Our Free Newsletter |
