Capital is being raised to retire debt firstly and give an exit to PE firm Blackstone. Promoters also diluting minor stake in the co.
All in all,its a very good business but not a good investment at the valuation IPO is asking for.
Capital is being raised to retire debt firstly and give an exit to PE firm Blackstone. Promoters also diluting minor stake in the co.
All in all,its a very good business but not a good investment at the valuation IPO is asking for.
Hi,
This is my first post in this forum and let me just say that based on what I have seen this is a terrific forum.
On Kitex; clearly the key tactical issue for now is what will the numbers be like for the next two quarters and will they meet their guidance of INR 600 - 650 Crores.
The seasonality data for last three years show that the second half can contribute anywhere between 54 to 60% of annual revenues. Based on numbers of first half, the full year revenues of Kitex can range anywhere between INR 471 Crores to INR 542 Crores. Applying the 20% net margin figure and using the 4.75 C Equity base, EPS looks to be around INR 20 to INR 22. The impact of such a EPS on a share trading at this multiple need hardly be spelt out.
Looking at this the other way; in order for them to reach INR 625 Crores for the full year, the second half has to generate revenues of INR 408 Crores; which is 65% of Annual Sales. Given that second half has contributed in the past upto 60% ( FY 12) the number is just tantalizingly within reach but is stretched enough to raise concern on immediate valuations.
http://m.agrimoney.com/news/china-sugar-woes-to-drag-it-behind-thailand-in-output-league--8850.html
Abandoning sugar cane'
The bureau's downgraded forecast for Chinese sugar production reflected too ideas of a drop in cane area, driving production down 8m tonnes to 90m tonnes.
"Since 2011-12, the [state guaranteed] floor price for sugar cane has dropped by more than a quarter, while production costs are estimated to have nearly doubled, largely due to higher labour costs.
"Farmers have increasingly been abandoning sugar cane and switching to specialty crops to increase farm income."
This has led to China sugar imports increase by 50%.
Drought in Cuba too contributes to sugar deficit predictions.
Sir,
Can we get one example or already implemented example url with this checklist if possible.
thanks
Mahesh
Companies with high sugar inventories will see improvement in their balance sheet.
Hi,
The checklist is not openning please share the updated checklist.
Hi,
The checklist is not openning please share the updated checklist.
Why is it raising capital if there is no CAPEX need for a long time to come?
Doesn't they deliver to deodorant companies and also does they have any pricing power in the form of moat ??
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