Wednesday, May 29, 2013

Cravatex Ltd - Latest News

Financial Results for March 31, 2013
Link: Click Here

Board recommends Dividend
Cravatex Ltd has informed BSE that subject to approval of Members in the Annual General Meeting, the Board of Directors in their Meeting held on May 28, 2013, interalia, have recommended a dividend of Rs. 3.50 per equity share (35%).

My Views:
Cravatex still has lot of work to do. The standalone results have improved compared to last few quarters.
The revenues has gone up by 21% YoY, and 13% QoQ.
The net profit has gone up by 44% YoY and actually gone down by 9% QoQ.
If I am not wrong, I think this is their record revenues on standalone basis. But still the growth is not impressive.
Cravatex has never been a high dividend paying company, hence a dividend of 3.5 Rs per share is not a surprise to me.
The Net Profit of the company could have been much higher, if Rs wouldn't have depreciated so much. But this seems to be general statement now, with every quarterly results of Cravatex. The way Rs is behaving off-late, it doesn't seem that Rs is going to come down against dollar in near future, but you never know.
After a stupendous increase of revenues in FY12 from FY11, where it grew from 95 Crs in FY11 to 160 Crs in FY12, this time the revenue growth proved to be absolutely flat, where it grew from 160 Crs in FY12 to 171 Crs in FY13.
But the stock price has already depreciated enough because of this fact.
In my opinion, I don't see much more downside from here. The one holding this share can continue to hold and wait if something big happens in the near future.
Its difficult to predict the movement of stock price after this result, as stock has been very very illiquid in last few days.

13 comments:

  1. Two Results came with a day difference !!! Cravatex and Gulshan Polyols !!!! Both have reported an EPS around Rs.27+ Both are small capital based !!!! No doubt industry is different !!! If someone is holding Cravatex - For a change sell some Cravatex and buy Gulshan Polyols and one will get minimum of 5 GPL for 1 Cravatex !!! Dividend - Rs.12.5 on GPL and Cravatex Rs.3.5 !!!! May be this may work out to be a good swap !!!! This is on the assumption that Cravatex gets sold around Rs.350 and GPL is bought around Rs.70 !!!!

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  2. Very good point made by you there.
    Gulshan did surprise everyone with the dividend, plus an outstanding quarterly performance. I had no doubt in giving a buy call on that.
    On the other hand, we have Cravatex, whose dividend is very less compared to Gulshan, and results also not as impressive as Gulshan.
    But still, I am interested in watching how Cravatex trades further based on this quarter numbers. Because I wasn't able to come to a particular conclusion after looking at those numbers. Hence advised a hold.

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  3. Today Ricoh India (a Japanese MNC) has published it's quarterly as well as Annual results !!! Please go through it !!! They are really block-buster results !!!! And it's a multi-bagger !!!! I have been writing on it since it bottomed out @ 34 !!!!! Quarterly results are mind-boggling !!! Please remember that it's not hardware alone !!!! But it's much much more !!!
    http://www.bseindia.com/corporates/anndet_new.aspx?newsid=8e3debc7-8783-4de6-8c23-89a54f10bfb5

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  4. The result looks outstanding to me as well, but frankly speaking, I didn't had an idea about this stock, and that, you were writing on it.
    Stock hit upper circuit today, and it seems that it would have been because of such outstanding numbers.
    Company's other parameter like business, current promoter holding and other things are also looking good, except for the fact that they haven't paid dividend after 2008.
    Revenue growth is also looking great since FY11.

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  5. I have been tracking this stock for the last four years. Now this stock is ready to explode. FY2013-14 is like to return with a Rs.1000 crores turnover. It's really unbelievable keeping in view that in FY09-10 they did just 256 crores ! Effectively turnover would have gone up 4 times in four years. It's revenue model is quite interesting so much so that it earns almost 50 percent from service charges(including maintenance, per unit cost/billing, consumables, etc.). Ricoh, Japan has been a Fortune 500 Company and has operations in more than 120 countries. However, except in India no where a subsidiary of Ricoh, Japan is listed. This is unique. They tried to delist the company in November 2012 but could not succeed as no of shares tendered were far less. However, the discovered price was 130 if I remember correctly. In the last six -seven years Company has undergone complete restructuring. Two VRS schemes(second one in June 2012) and two acquisitions(IT Support and integration)in 2011 and 2012. And it has completely changed the platform of the Company. March 2013 results have demonstrated as to what type of revenues and profits can be generated by this company. What is important is that hiring and firing is complete and it's equipped with right and tight sized manpower which is delivering. In the next two-three years' time I see it as a FOUR multi-bagger.

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  6. Thank you so much for the updates, and the description given is excellent. Will definitely look to get in after some research.
    If what all you mentioned is correct, then even, 60 is not a bad price to enter.

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  7. Hi Kunal,
    Incidentally, today there is an interview of Mr.Manoj Kumar, CFO and Sr.VP, Ricoh India. In the last five years, I have for the first time seen some Ricoh India official coming on CNBC. They have never projected themselves on TVs, etc. I am sure, it's CNBC people who must have approached them looking to the quarterly and annual numbers.

    http://www.moneycontrol.com/news/results-boardroom/q4-income48-growth-to-continue-ricoh_889910.html

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  8. Something more of recent origin on Ricoh India
    http://ibnlive.in.com/generalnewsfeed/news/ricoh-india-to-make-city-office-as-primary-data-centre/1252210.html

    While doing your research if you can find out the total carpet/land area of this Salt Lake, Kolkata, office I shall be thankful to you.

    I shall wait for your comments after your peep into this scrip.

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  9. http://www.thehindubusinessline.com/industry-and-economy/info-tech/ricoh-india-to-expand-it-services-biz/article4769134.ece

    And something more from Businessline(Hindu) :-)

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  10. I was about to put it this one also but though it will be too much for you :-)

    But what is your take on it?

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  11. particularly you can understand this business a lot better !

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  12. Looks very interesting to me....
    Also, I found an article on Infosys intranet, which said that Infosys ties up with Ricoh for Cloud Services...
    Will be checking out in detail whenever I will get time....and post the detail on new thread created for Ricoh now....

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  13. Being a domain man, I mean from the IT sector, I request you to go through in detail on Ricoh's newer verticals, they have four verticals now, and sustainability of their revenue model and margins !!!!

    ReplyDelete