Even though I have sold it, I still think highly of the company. Ibaco has reduced prices of their ice creams but still very expensive at Rs 499-999. A negative is that they are trying to build too many brands which could probably have waited but management seems to be think that they are extensions to existing business utilizing capacity and so they are confident of having the necessary bandwidth.

Rise in skimmed milk prices internationally wont help Indian exporters yet as those prices are still below Indian rates.

Link: http://www.thehindubusinessline.com/economy/agri-business/dairy-exporters-gear-up-as-global-smp-prices-edge-up/article7633758.ece

Excerpts:

Industry sources pegged the current SMP inventory at 70,000-80,000 tonnes with negligible exports having taken place last year on account of low prices.

In 2013-14, however, Indian companies exported about 125 lakh tonnes when global prices were between $4,000 and $4,800/tonne.

“Prices had crashed to ₹90/kg and have since risen to around ₹110. But this is not viable since domestically it is between ₹140 and ₹150/kg. It’s difficult to say if the rise will continue, but if it does, perhaps some of the intervention stocks could be released,” said Sandeep Aggarwal, Director, SMC Foods Ltd.

Chandramogan said exports of SMP will have no impact on domestic milk prices, since overseas sales had never exceeded 0.6 million tonnes (mt) in any year.

This was a fraction of the estimated 140 mt of milk produced, unlike New Zealand, which exports almost 95 per cent of its dairy produce.

25% is nothing… Eicher shot up many times in a year after I sold it!

Disclaimer: Sold out few months back.

Very well put Hitesh. PI is a multi year story. And to an extent not totally dependent upon monsoon.

sir as most of its csm business comes from japan, recent downgrade will affect going forward?

@Sambath

Pokarna’s Quartz exports to US were 98cr. Assuming $10 persqft realization, the volume must be 1.6 lsqm (15.6 lsqft). Extrapolating monthly US imports to annual (potential error), imports from India were 21 lsqft. Its quite possible that majority if not all of India Quartz exports are from Pokarna, especially since it is the only company with Breton technology in India.

But extending the same logic further, they sold 37 cr of Quartz to ex-US destinations. Considering the production of 3 lsqm, the volume of ex-US Quartz sold was 1.4 lsqm. This means a price realization of $3.9 per sq ft which seems too low. Why would they sell at such low prices elsewhere?

Similar issues crop up when tying up the granite story. Maybe I’m missing something, so would love to hear from you all.