I am in agreement with the reservations raised above vis-a-vis currency, TPP, etc.,.
I was in queue but didn’t get chance to ask questions (maybe a preference for institutions/brokers above the retail investors). Most of my questions were covered but I wanted to grill further on the TPP issue and wanted to ask about pledging point raised above earlier.
Some analyst did ask about 3% currency gap whereas interest rate at present paid by company at 9%. Mgmt. didn’t answer that question clearly at all and kept repeating dollar INR to come at Rs. 67. Neither did the CFO pitch in on this query and it was Mr. Sabu who attended this query as well.
On TPP front to, the same approach as above. I mean comeon what do you mean by special garment? Why is kidswear a special garment and why wouldn’t it be covered under TPP?
Answers around dividend payout were not straight forward either, however when asked for the second time, mr. Sabu did say that they will come out with a Dividend Payout policy.
I can understand that the mgmt’s communication skills may not be the best but the logic and reasoning could surely be explained with whatever communication skills that they have got.
I am still invested (6% of portfolio previously 10-11%) as I had earlier sold to maintain certain allocation levels plus for new purchases and have bought at much lower levels. Would continue to hold as giving the mgmt. benefit of doubt coz of couple of other factors that are visible and also ‘coz I like the business.
Cheers.
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