This is not a issue to be taken lightly.It has happened before. Please check the below link. The companies involved in the cartel suffered after this.
I am rather shocked that a CFO would admit to this in public. How long do you think its going o take somebody ,for taking it to the court or commission??
Ex depreciation company has show decent growth in 1HFY16.
I personally feel it is best to look at V Mart at PAT + Depreciation level. There were lots of exceptional items in depreciation level last year (Depreciation was +ve in 2Q and 3Q FY15.)
Self funding now
The company has become FCF and is self funding now. I dont know of any retail company is India which is FCF +ve. That itself is a massive achievement.
New store additions
There were concerns on new store additions. Current store count is 122 up from 109 end of 2QFY16. So company has added 13 new stores in 3Q so far.
Disclosure: Invested recently
The stock has been sliding but on extremely low volumes -
http://www.moneycontrol.com/deliverable-volumes-price/orientalcarbonchemicals/OCC
From 23rd Oct to 17th Nov (16 trading sessions) , the stock fell from 570/- to 518/-. Some 26,000 shares were traded in delivery . This is just ~0.25% of total equity that changed hands in 9% fall. This also means just 0.015% daily average .
Yes, this is an excellent company with a strong domestic franchise. Valuations are very attractive. Growth is steady. Debt free. Asset light. Prudent management. No dilution ever. Margins increasing each year.
I would say Jenburkt has a huge runway ahead. Probably will see 4 digits in a couple of years.
Disc - Holding and vested.
Neil
Hi Hitesh, what has been the issue with color of the tablets ?
Has anyone looked at Jenburkt recently. Reminds me a lot of Anuh Pharma. But with higher EBITDA margins
--- Market Cap Rs211crs
--- RoEs of 30%+ for the last 5 years
--- Net cash company)
--- Pays out 30% of profits out as dividends
--- Trading at FY15 P/E of 23x. 1HFY16 PAT is up 29% YoY
---83% of business is domestic and 17% is exports.
I have used a couple of its products namely powergesic gels and tablets and one derma product. Very effective products.
I bought a small quantity for tracking purposes.
From what they say, looks like a very differentiated play and so not sure why they are not able to scale up the volumes.
Do any of have a ppt explaining the industry scenario - i.e. size, competitors and strengths? I have been trying to talk to them, but haven't been too successful.
Cheers,
An outstanding Q2 given the conditions. CLSE's focus on speciality products has resulted in a significant expansion of margins. This year 2015-16, they will end up with an eps of around Rs.45.
I think next year will witness an increase in their topline as well. I think volumes have already started picking up, but given the lower basmati prices, this really doesn't reflect in their topline. Additionally, they are setting a target of Rs.100 crore in the Indian markets alone and plan to reach there next year.
All in all, a good buy even at current levels.
Interesting thing is Innovator (AstraZeneca) still has 60% market share despite Teva launching the generic in January, 2015. Torrent management also stated in the concall that its a high volume product and they are targeting high single digit market share. The withdrawal of DRL and Hetero from Nexium market might also result in higher pricing for the near term. Also, it might help in Torrent getting higher market shares and getting inroads in the some of the pharmacy retail chains.