agree, Gruh consolidated for almost an year and is ‘relatively’ inexpensive when compared to other stocks on HFCs. Generally, it tends to spike (~ 30%) without notice after a deep consolidation. May be tomorrow’s rate cut might act as a trigger coupled with any further positive news. I personally believe it may run towards 350-375 zone in short to medium term.
Disclosure: Invested as indicated in my portfolio thread.
Thanks @varundarji for sharing notes. I have two question, may be little late to party.
1) If they are expecting decline in Supima and Giza cotton, why they are thinking to increase the capacity of spindle? Is it because even in the decline they will have demands for new one as they have good relationship with existing customer ?
2) Does the same spindle can be used for other cotton blending also because you wrote “In future, if there is a shortage of Supima/Giza, the buyer will understand and Ambika can blend other cotton varieties as per the requirement of the client.” . If yes, this means they can grow in other segment but I guess they don’t want to because it is already overcrowded?
But seeing at the premium it is quoting , is it not too expensive as compared to other companies in the same segment .
Disclosure- want to get idea before investing
@vardharaj Sir any comments on the 2015 Annual Report? Aren’t they diversifying too much ? Suddenly everybody wants to ever PVC segment. In the report, they said that they have already started production but I did not see any revenues from that division. I hold it as a conviction stock with 10% of my PF. Added all at 675 price recently
Hi Tushaar,
I think he meant to say that working along with Jabong and myntra to sell garments online, Indian Terrain will hold inventory for them(jabong, myntra) and in return will command 200 bps higher margin by selling online. So holding inventory will cost some 30-40 lacs, and in return with 30 crs sales online (10% of total sales) incremental sales will be around 1 cr (that’s a guess I think). Not a wise decision, coz it will block more money in working capital and require additional money as sales increase, which is kinda anti-moat(coining a new term here).
Hope it explains.
Vardha,
One more point to highlight is some comparison with suzlon, Opto and EPC companies. Please cheque gearing and free cashflow and dividend payment. While control print is not A+ business model, it is definitely fit B grade and not D grade model which are cited for comparison. EPC countries need to infuse capital in business and Sulzon Opto has constant debt funded acquisition. Both these issues are absent.
Again, my view may be biased due to my holding and investor shall do their own due diligence before investing
Point about cashflow well taken. Only limited issue I was highlighting as compared with other sector where high operating cashflow but huge capex requirement would leave very limited free cashflow. While in cash of control print, OCF is almost equal to FCF without any capex. It would be great to get free cashflow business. Control print does not fit into to A+ business model. Hope this bring clarity.
It has already become quite normal in large cities of Japan to not own a car. Most of those don’t even have a driver’s licence. The effects of efficient public transportation, parking hazzles and overcrowded roads could lead to reduction in car ownership. And in case of India, as told in a speech by Mahindra, it could be Uber and Ola instead of public transport that could make travel cheaper… Cheaper than actually owning a car. It’s all speculation for now though 
You mean the Mar’15 quarter or Jun’15 quarter?
Few month back Radhakishan Damani, Kotak Mahindra Investments and Reliance Capital Trust has bought the stock near 250